Moniepoint Shifts Fraud Risk To POS Operators

… New Terms Allow Debits Without Notice

Thousands of POS operators across Nigeria may be unknowingly exposed to sweeping financial and legal risks under the latest agency banking terms issued by Moniepoint Microfinance Bank Limited.

A review of the agreement reveals that agents, many of them small business owners, bear near-total liability for fraudulent transactions, even in cases involving staff errors or suspected customer scams.

The contract, which was made available to THE WHISTLER, empowers the bank to debit agents’ accounts directly to recover losses, legal costs, or disputed transactions, often without prior notice.

“In the event of the occurrence of an event that leads to any damage, loss, liability or expense to Moniepoint MFB as stated in this clause 19, the Agent hereby agrees and authorises Moniepoint MFB to immediately debit its Account without recourse to the Agent,” the contract read.

Even more concerning, the bank reserves the right to suspend or terminate an agent’s account based on “reasonable suspicion”, poor performance, or failure to meet transaction targets, leaving operators vulnerable to sudden business shutdowns.

“You hereby authorizes Moniepoint MFB to place a restriction on Your Account if there is reasonable suspicion of fraud in connection with Your Account, and/or the provision of the Agent Service, if You fail to meet agreed targets communicated by Moniepoint MFB from time to time, or if You
breach any provision of these Terms of Use,” they added.

Under the terms, agents must also comply with strict regulatory obligations aligned with Central Bank of Nigeria guidelines, including collecting customer identification, enforcing transaction limits, and maintaining records for up to five years, effectively operating as frontline financial institutions.

“You shall ensure that KYC documents (i.e. national card, driving license, voter’s card or
international passport) are sighted from Customers before performing Transactions and on their behalf.

“Additionally, for all instant transfers conducted by Customers, you shall collect
and store a copy of their government issued means of identification prior to consummating Transactions instituted by such Customers.

“The name and photo identification of Customers
must at all times match the name on the payment card presented,” Moniepoint added in the contract.

Liability on the bank’s side is capped, while agents face broad indemnity obligations covering fraud, customer disputes, and regulatory penalties.

Industry observers say the terms reflect a growing trend in Nigeria’s agency banking sector, where fintech platforms expand rapidly by outsourcing operational risk to independent agents.

For many POS operators, the opportunity remains profitable, but experts warn that without strict internal controls, proper staff training, and fraud awareness, the business could quickly turn from a source of income into a significant financial liability.