Most Nigerians have had to rely heavily on internet transfers and POS transactions as a result of the recent Naira redesign policy in Nigeria, which has resulted in a scarcity of physical cash.
However, this has resulted in an increase in the number of failed POS transactions, which typically involve users being debited but not being paid. And, due to network issues, several banks have been extremely slow to reverse failed transactions or have completely failed to rectify the situation.
As a result, we decided to share a few tips for reducing failed transactions when making payments in Nigeria. And here are some examples:
1. Before making a transfer, test the waters.
Most people proceed with their transaction without first ensuring that the channel is operational when making payments via internet banking, USSD, or other mobile transfer channels. However, in critical times like these, when network problems from banks and ISPs are common, you may want to be extra cautious.
Before sending a payment, test the waters to ensure that your mobile network and banking system are in sync and functioning properly to allow a transaction to be completed. You can do this by first sending a small amount of money to see if it works, and then sending the main payment if the trial version works.
As an example, consider the following:
Assume you want to send $100,000 to Mr. A for a commodity or service. However, you are skeptical of the network’s stability and do not want such a large sum hanging in the balance due to failed transactions. You can begin by sending as little as $50. If that goes through, there’s a good chance your $100,000 transfer will not fail.
However, if the transfer of the 50 fails, you can take this as a cue to hang on for a while. If you are debited $50, it is a small price to pay compared to having $100,000 stuck in this period when banking systems are epileptic and banking halls are barely accessible.
2. Request that your POS agent run a test amount first
Most Nigerians have had to rely on POS operators for cash withdrawals because most ATMs are either not working or are overcrowded. Furthermore, several shops and retailers rely heavily on it to be paid for their goods and services.
However, the system is prone to failed transactions. Furthermore, you may receive a debit alert despite the fact that your payment did not go through or the system declined your card. So, how do you avoid the psychological stress of having a large portion of your money hanging in the balance?
Assume you want to withdraw $5,000 from a POS agent or are about to purchase $5,000 from a seller. If you’re concerned about a failed transaction, tell the agent or vendor to please enter between 50 and 100 first. If that goes through, it indicates that your main transaction has a good chance of succeeding. Otherwise, you can postpone the initial transaction.
Finally, some final thoughts on avoiding failed transactions
Please exercise extreme caution during this holiday season. Do not give out your ATM PIN or other banking information to anyone unless absolutely necessary. Make sure you get a receipt if a POS transaction fails. Also, in your pursuit of cash, exercise extreme caution so that you do not receive.