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The POS business has to do with finance and must, therefore, be approached carefully. Besides, the Central Bank of Nigeria is very particular about the business entities that qualify to be agents. So, extra care is taken by before they authorise an agent for their retail banking.
To be eligible, you must have an existing business in operation at least for 12 months. Also, you must have a shop or office from which you operate. Then, you must have been as any of the following entities;
You will need to fill some documents/agreement forms on the transaction conditions. Then, the bank reviews the application in line with CBN, internal criteria and agrees with you if you meet all requirements.
Also, you must have an account for a direct deposit for the business and provide some documents as part of the requirements for the proposal.
Step 4: Location
To thrive in the business, it’s advisable to choose a location with limited banks or places with few ATMs. Also, choose strategic locations like the bus stop, public market, event centers, etc. All of these factors will affect your daily profit.
Once you have a good location, construct a shed or shop but create enough spaces for swift movement for you and the customers. Have a banner displayed at the entrance to show the retail banking services you offer.
Then, for security measures, you can have a special purse/pouch around your neck or a safe with a solid lock to prevent theft and burglary.
Also, if you notice that an ATM is not dispensing cash, you can go there to advertise your service. Some people there in need of cash might subscribe to your service.
If your prefer to learn by video, And subscribe to our channel for more business ideas and insights.
As soon as you have these, the next step is to start providing the following services;
To be eligible, you must have an existing business in operation at least for 12 months. Also, you must have a shop or office from which you operate. Then, you must have been as any of the following entities;
- Limited Liability Company
- Sole Proprietorship
- Partnership
- Cooperative Societies
- Public Entities
- Trusts or any other entity aside faith-based or NGOs.
Step 2: Approach A Bank
Virtually all Nigerian banks allow agent banking services. As soon as you decide on the bank of your choice, the next thing is to approach the bank and get details of their requirement. The CBN guide allows being an agent for as many banks as you can serve.You will need to fill some documents/agreement forms on the transaction conditions. Then, the bank reviews the application in line with CBN, internal criteria and agrees with you if you meet all requirements.
Also, you must have an account for a direct deposit for the business and provide some documents as part of the requirements for the proposal.
Requirements For POS Business
Some of the required documents include;- Valid means of identification e.g Driver’s license, National ID card, International passport or voter’s card.
- BVN
- 2 passport photographs
- 2 current account references
- Evidence of business registration (CAC Certificate)
- Memorandum and Article of Association.
- Credit Bureau Report
- A minimum working capital of N50,000 Step3: Get The Equipment
- Point of Sale Terminal; a portable device that facilitates payments of goods and services at bank agent locations using payment cards.
- Card reader
- Barcode scanner to scan bills for bill payment transactions
- Personal identification number (PIN) etc.
Step 4: Location
To thrive in the business, it’s advisable to choose a location with limited banks or places with few ATMs. Also, choose strategic locations like the bus stop, public market, event centers, etc. All of these factors will affect your daily profit.
Once you have a good location, construct a shed or shop but create enough spaces for swift movement for you and the customers. Have a banner displayed at the entrance to show the retail banking services you offer.
Then, for security measures, you can have a special purse/pouch around your neck or a safe with a solid lock to prevent theft and burglary.
Also, if you notice that an ATM is not dispensing cash, you can go there to advertise your service. Some people there in need of cash might subscribe to your service.
If your prefer to learn by video, And subscribe to our channel for more business ideas and insights.
Step 5: Render Services
The business is rendered through POS terminals, card readers, mobile phones, and bank linked mobile wallets for real-time transaction processing.As soon as you have these, the next step is to start providing the following services;
- Cash deposit and withdrawal
- Balance inquiry
- Funds transfer services (local money value transfer)
- Bill payment (taxes, utilities, tenement rates, subscriptions, e.t.c)
- Generation and issuance of mini statement
- Cash disbursement and cash repayment of loans
- Agent mobile payments/banking services