POS transactions: Zenith Bank cautions operators on ‘illegal’ fees hike as CBN intervenes

Zenith Bank says the changes in the transaction fees for point of sale (PoS) services cannot be implemented by its registered agent bankers.

Z-Money is an agency banking product of the bank that entails the onboarding of agents who are expected to render basic financial services on behalf of the firm.

Last Friday, the Lagos chapter of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) announced a new price list for PoS transactions in the state.

In an interview with Channels Television, Stephen Adeoye, the spokesperson of the association noted that the measure was put in place to deter fraud and curtail “agents who still overcharge”.

For withdrawal, Adeoye said, agents in the state were mandated to charge N100 for amounts between N1000 to N2,400; N200 for N3,500 to N4,000; and N300 for N4,100 to N6,400.

Speaking to its agents on the issue, Zenith Bank said the adjustment was not in compliance with the Central Bank of Nigeria’s (CBN) regulation.

The bank’s position was contained in a circular seen by TheCable, dated July 5, 2023, and jointly signed by Lanre Oladimeji, its head of retail banking, and Uju Umeh, its retail banking executive.

“Kindly be informed that the changes in transaction charges/fees as highlighted in the said publication is not in line with CBN regulation and as such cannot be implemented by registered agents,” the circular reads.

“Agents are advised to maintain status-quo on pricing based on agreement with the bank.”

The bank said any adjustment in prices will be communicated appropriately through “our official channels after due consultation with the regulatory authority”. 

Responding to further enquiry on the subject, Isa Abdulmumin, CBN spokesperson, said the apex bank is in talks with the operators. 

“The bank is already engaging the operators,” he said tersely without further details.