As a small business owner, you would probably think that point of sale machine is an exclusive re-service of rich big companies.

That is not the case. As a small business owner, you can go cashless as well.

Why You Need PoS

PoS will save you from lots of challenges including eliminating the constant headache of not having the exact change that your customers need during transactions as any amount no matter how small can be paid using the PoS.

It would also save you from petty theft from your sales boy/girl if you have unreliable ones.

PoS would also save you from risks associated with handling cash as your money is deposited electronically into your account as the sales are made.

You also have a chance of selling more since customers are likelier to buy more with cards than cash.

More so, based on CBN policy on cash lodgments and withdrawals, all businesses that accept cash up to 500,000 Naira for individuals and up to 3,000,000 Naira for corporate customers for their daily business transactions would be charged from 2% in excess of the approved free lodgment limit, if the transaction is in cash.

So PoS saves from these charges.

Also as a business you do not have to pay extra cost for acquiring or maintaining the PoS terminal. It is the duty of the issuing bank to do that.

How Do You Apply For A PoS?

1. Obtain And Complete A Form: Most PoS terminals are issued by commercial banks. If you need a PoS, you would be required to get in touch with your account officer to obtain a form. The forms are not always readily available at the customers’ service desk, so you would need to work with your account officer. Depending on the banks, the forms can also be downloaded online on their websites.

2. Make sure You Maintain An Account With The Bank: Having an active account with the bank is the first condition you need to meet. Your status as a business entity means you must have a current account. Some banks will not issue you with a PoS terminal if your account type is not current.

You must have also maintained this account for at least six months.

Some banks also require you to have a certain amount of cash deposits in your account before you can be issued with a PoS. For example, a certain new generation bank with headquarters in Victoria Island requires that you have at least 1 million Naira before you can be issued a PoS terminal.

3. Sign An Agreement Form: Once the application form has been completed and submitted, the next thing is to sign an agreement form that the bank will present to you. Depending on the bank, you should be able to get your PoS terminal between 72 hours and 14 days.

Things To Note:

*The PoS terminals are not paid for.

*There has to be a certain minimum activity to continue enjoying the service.

*The terminals are serviced only through the banks.

*There is a charge of 1.25% on successful transactions which is deducted from completed transactions before being credited to your account.