POS Merchants Seek Policy Change On Charge-Back Claims

4 years ago
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POS merchants operating in Nigeria has implored the  Central Bank of Nigeria (CBN) to change its policy towards Charge-Back claims on POS transactions as fraud increases at an alarming rate.
The extant CBN policy allows POS cardholders to lodge a Charge-back claim within six months of the transaction while the POS Merchants have only 48 hours to defend the claim, otherwise the merchants will be automatically debited by the switch company.
The strategy fraudulent cardholders adopt,the merchant said, is to wait for a month or more before raising a false Charge-Back claim with their banks, knowing  that the POS merchants may not defend the claim, because the transaction receipt might either have faded out or might have been archived.
They  claimed to have  lost millions of Naira to fraudsters as reports show rising cases of this type of fraud in the country,adding that  the rise may not be unconnected with the rising public awareness of the process, making fraudsters to exploit the loopholes on daily basis with different Merchant outlets using different cards.
‘’POS Merchants in the country want the CBN to enact a policy that will criminalize the act of false charge-back claims to minimize its occurrence. The merchants want the CBN to mandate banks to reject the false charge-backs at their end using the evidence they already have in their system. The merchants also calls on the CBN to review the six month period, cardholders have to lodge a complaint and the 48 hour response time available for merchants to respond to claims of charge-backs’’,they said.
Advocating that  cardholders should have a maximum of one month to claim while merchants should have one to two weeks to defend claims,the POS merchants reiterated  their commitment to the apex bank’s  policy to entrench a cashless society for the good of  the country.
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