Guaranty Trust Bank Ltd. (GTBank) announced in a customer notice on Thursday that it will no longer charge processing fees on all its point-of-sale (POS) terminals, so small and medium-sized businesses (SMEs) can now accept payments without incurring additional fees. According to the financial institution, on February 11th, the Merchant Service Charges (MSC) waiver went into effect.
This action is being taken as a result of inflation and currency depreciation, which are driving up operating expenses for businesses. Neobanks have become popular among merchants due to their quicker processing times and cheaper transaction fees.
GTBank’s commitment to SME growth
According to Guaranty Trust Bank Ltd, removing these fees will improve its standing in the digital payments industry and lessen the financial strain on SMEs. The initiative is anticipated to increase the bank’s transaction volumes and strengthen its dedication to providing businesses with cutting-edge financial solutions. SMEs can now process payments using GTBank’s POS terminals without incurring additional fees; relationship managers or digital banking support can provide more information.
“At Guaranty Trust Bank Ltd, we are constantly looking for ways to add value to our financial ecosystem,” said Miriam Olusanya, managing director of Guaranty Trust Bank Nigeria, who provided the justification for the decision.
In addition to guaranteeing a smoother and more effective payment experience, we are enabling businesses to receive the full value of every payment they receive by implementing zero processing fees on POS transactions.
Meanwhile, a decision by the Central Bank of Nigeria (CBN) to review the fees associated with withdrawals from automated teller machines (ATMs) has raised concerns about potential increases in Point of Sale (PoS) service fees.
New ATM fees take effect on March 1
The updated charges will go into effect on March 1, 2025, per a circular signed by John Onojah, Acting Director of the Financial Policy and Regulation Department. The CBN Guide to Charges by Banks, Other Financial, and Non-Bank Financial Institutions (2020) has been updated with the changes to Section 10.7.
Customers will still be able to get free cash withdrawals from their own bank’s ATMs under the new policy. However, there will now be a fee of ₦100 for people using on-site ATMs at bank branches to withdraw money from other banks, in addition to a surcharge of up to ₦500 for every ₦20,000 withdrawal. Financial institutions will apply a cost-recovery charge equal to the precise amount charged by the international acquirer for debit or credit card withdrawals made from ATMs abroad. According to the CBN, these adjustments are meant to promote the use of ATMs and guarantee equitable fees for all financial institutions.
However due to the scarcity of cash in ATMs across the country, most Nigerians rely on Point of Sale (PoS) operators, who might increase their prices in order to take advantage of the situation.
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