The Central Bank of Nigeria (CBN) has deregulated the Merchant Service Charge (MSC) on electronic transactions. MSC is the fee merchants such as supermarkets pay for payment customers make to them through electronic payment channels such as Point of Sales (PoS).
However, the CBN on Friday said that effective May 1st 2017, it would no longer regulate MSC, adding that the MSC regime will be replaced with Interchange Fee regime.
Director, Banking and Payment System Department (BPSD), CBN, Mr. Dipo Fatokun announced this development in a circular titled, “Circular on the Implementation of the Interchange Fee”
He said, “With the introduction of the Cash-Less Nigeria Project and the release of the Guidelines on PoS Card Acceptance Services, the CBN outlined the Merchant Service Charge (MSC) and the modalities for its operation in the payments system.