Banks rip off customers ?over POS charges

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Henry

The desire of the Bank of Ghana (BoG) to move the country?s economic payment system into a cashless one could hit a snag as consumers who use ATM cards to pay for goods through ?Point of Sale? (POS) terminals lament over high charges.

The use of POS devices was introduced by the Central Bank, among other reasons, to reduce the handling of cash in business transactions as a measure of controlling money supply.

Checks by Business Day revealed that, the cost of using an ATM card at POS terminals ranges from 50 pesewas to GH?5,  with some banks offering it for free.

However, some customers who use this method of payment have complained to Business Day that they have been charged transaction fees as high as GH?9.10 for goods worth GH?7.0 at some of the country?s major shopping malls.

A source at SG-Ghana told Business Day that, ?Ideally, charges on POS must be free, particularly when it involves an ATM card and a device from the same bank?.

Authorities at the Accra Shopping Mall for instance have explained to Business Day that the high charges could be as a result of switching a particular bank?s ATM card with a different bank?s POS device.

Madam Grace Ananga, a manager at Shoprite, Accra Mall, stated that several complains have reached her outfit concerning the development.

Business Day has observed that the phenomenon has resulted in long queues at the mall?s ATM machines, defeating the Central Bank?s aim of limiting the circulation of cash for the payment of goods and services.

The Ghana Interbank Payment and Settlement Systems (GhIPSS), which manages the scheme has in recent times stated that it will intensify education on how to operate the stand-alone machine, in order to prevent technical hiccups.

Head of Business Development at GhIPSS, Mary Dei Sarpong, has maintained that new features are being added to the device to increase the reach of the service.

Speaking in an interview with Business Day, Head of Banking Supervision of the BoG, Mr. Franklyn Belnye advised victims of wrong deductions to make an official complaint to their respective banks.

He maintained that cost of transaction among banks is well documented by the BoG and published to protect the consumer.

It is therefore imperative for customers to contact their banks for explanation concerning certain deductions which do not tally with the BoG directive, he stressed.

He continued that, the Central Bank as a regulator is firm on bank charges and the interbank settlement system.

Mr. Belnye therefore appealed to the general public to notify the BoG anytime wrong deductions are made on their accounts through a POS system.

Recent trends in ATM charges

Recent figures from the bank of Ghana indicate that the Agricultural Development Bank (ADB) has the highest ATM charge in the country?s banking industry.

According to the figures, customers from ADB pay 50 pesewas per an ATM transaction they make.

ADB is followed by Prudential bank which has the second highest ATM charge. Its customers are charged 40 pesewas for every cash withdrawn using the ATM.

The third bank which charges the most when customers withdraw cash through their ATM is SGSSB at 35 pesewas with GT bank coming in at number four with 30 pesewas for a withdrawal.

Three banks; First Bank of Nigeria, Bank of Africa (BOA) and National Investment Bank (NIB) wrestle over the number five position with all of them charging 25 pesewas for an ATM transaction while Sahel Sahara Bank (BSIC), Access bank, Cal bank, First Atlantic bank and HFC bank all charge their customers 20 pesewas for every withdrawal made at the ATM machine.

The least charge comes from Ecobank with a charge of 10 pesewas followed by Zenith bank with an 18 pesewas charge.

Ten banks in the country do not charge at all for an ATM transaction.

The banks are Barclays bank, Standard Charted bank, Stanbic bank, United Bank for Africa (UBA), bank of Baroda, GCB, Universal Merchant bank, UT Bank, Royal bank and First Capital Plus bank.

On monthly bases, there is Energy bank which charges one cedi per month for an internal withdrawal and 20 pesewas per external transaction. Fidelity bank charges between 1 cedi 50 pesewas and 3 cedis per month while Unibank charges one cedi per month for ATM transactions.

By LAWRENCE SEGBEFIA

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