PoS operators hike charges as CBN’s cash withdrawal limit bites

Point of Sale (PoS) operators have hiked their charges on transactions after banks began the implementation of the three percent charges on withdrawals of over N500,000 for individuals as stipulated in the new cash withdrawal limit policy which began operations on Monday January 9, 2023.

The policy limits weekly cash withdrawal to N500,000 and N5 million for individuals and corporate bodies  respectively.

It further stated that the maximum cash withdrawal per week via Automated Teller Machines from January 9, would be N100,000 subject to a maximum of N20,000 cash withdrawal per day.

Individuals or organizations that have a compelling need to withdraw above the approved limits to transact legitimate businesses will have to pay a processing fee of three per cent and five per cent respectively.

Findings by this paper from some PoS operators in parts of Lagos showed that operators now charge between N250 to N300 for everyN10,000 withdrawn or transferred to another account instead of the previous N200 flat rate.

A PoS operator in Ikotun, Kunle, revealed that while he still charged N100 for transactions below N5,000, higher sum transactions now attract increased charges because of the new CBN policy.

“We had to increase our prices after the three per cent charges on our withdrawal, it is beyond our control, and we must also make our profits from services rendered,” she added.

Another operator in Ipaja who operates within a market, Bimbo, revealed that he makes between N800,000 and N900,000, and that the new policy has placed an additional burden of charges on his business.

“This charges will no doubt be transferred to our customers because if I want to remain in business, I have no choice but to pay the three per cent additional charges.