A small business owner has revealed why many of his kind steer clear of Point-of-Sale (PoS) terminals and opt for cash and bank-transfer transactions.
He blamed this on difficulties in reconciling payments made by customers via PoS terminals with the receiving bank.
The small business owner, Deji Akingbade stated this while reacting to a tweet by a human logistics specialist, Oluwatosin Adeniyi.
Adeniyi wrote, “A lot of small businesses don’t want to use POS; they would rather prefer you do a transfer to them.
“I’m tempted to think it’s either about reconciliation and actually getting the cash or it’s charges associated with it.
“Can anyone help with the possible reason?”
Reacting, Akingbade said, “From a reliable shop owner, according to her report, she uses @UNIONBANK_NG.
“They dont reconcile properly; that sometimes she loses as much as 50-60k monthly and it has continued like that.
“She had to ask them to take the PoS away. Now you either give her cash or you do transfer.”
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A logistics and transport entrepreneur, Abiodun Alli explained that he stopped patronising a small laundry business because the business owner preferred customers to use online payment option rather than the available PoS machine.
Responding to the tweet, a fashion designer and YouTuber, Chineze Araka blamed the business owner’s reluctance on the associated charges.
“The ‘charges’ are not for toddlers,” she wrote.
Another business owner who identified himself simply as Daniel wrote corroborated Araka’s assertion.
“It’s charges associated with it oo… Didn’t know about it until I had to get one,” he wrote.
Yet another user, Abayomi Sholademi, blamed both the hassle of reconciliation and associated charges for business owners’ reluctance to use PoS terminals for transactions.
Emphasising the first point, he wrote, “Reconciling a payments from POS is so tasking. Some banks do not use consistent rates.”