The Association of Point of Sale Service Providers (POS) has threatened to suspend banking operations across Nigeria if the Central Bank of Nigeria (CBN) and the Federal Competition and Consumer Protection Commission (FCCPC) do not urgently address the alleged exclusivity practices by Verve International and Interswitch Limited.
Statement by the Association
In a statement signed by its Communications Consultant, Yomi Idowu, the association warned that its members may be forced to cease acceptance, processing, and switching of Verve card transactions. This action, they claim, is a direct response to what they describe as persistent and escalating unlawful conduct by Verve and Interswitch.
Alleged Violations
The association listed several breaches, including:
- Maintaining an exclusive monopoly over Verve transaction processing.
- Abusing their dominant position in the domestic card scheme market, contrary to Section 72 of the FCCPC Act and Sections 3, 4, 7, and 3 of the CBN Guidelines on Operation of Electronic Payment Channels.
- Imposing scheme fees in excess of the regulated Merchant Service Commission (MSC) share attributable to acquirers under CBN regulations.
- Unauthorized and unlawful debits from settlement accounts of acquirers and processors/switches.
Background
The association emphasized that its members have contributed significantly to building the acceptance and growth of Verve cards at enormous cost, without any subsidy from Verve or Interswitch. They urged the CBN and FCCPC to intervene immediately to prevent a disruption of banking services.
