By Babajide Komolafe

You could dismiss this as a beer parlour discussion but it is a reflection of the widespread concern among the masses about the impeding implementation of the cash limit policy of the Central Bank of Nigeria (CBN).

“Is it the PoS that don’t have network service we would now be using? Dupe (not real name), the cashier at my barbing salon responded with sarcasm when I said that very soon they would have to be using PoS to collect money. And to prove her statement, she showed me a PoS which I myself rarely notice or see them operate. “Several times people want to buy recharge  cards but  there is no service. So I don’t even bother about it again, she said.

“Don’t worry the PoS coming can work offline so even without service it can work”, I tried to assure. “We have heard, that is what they will say but later the thing would start fumbling’, she said in Yoruba.

“I can’t even use card to pay,” quipped in Kunle (not real name), an oversize young guy who I can’t say was there for service or to while away time.  “Nobody can force me to use card to pay when I have my money. We are not using card to pay people’s money disappearing from their account, by the time we start using card, it would be worse”, he added. “Not with the new cards which are based on chips”, I tried to calm him. I explained that the new cards are based on chip technology that makes it difficult for anybody to access their account in as much as you don’t allow others know your PIN (Personal Identification Number).

“Is that not the technology they are using abroad and they are still losing money to card frauds”, Kunle replied emphatically. “The other day I was with my friend and he received text alert that N450,000 has been withdrawn from his account,” he said. And everybody except another customer started citing experiences of friends or relatives who have lost money to ATM fraudsters.

In order to dispel the cloud of pessimism over the use of cards and electronic payment channels, I advised that since road and air accidents don’t deter us from travelling by road or air, incidences of card frauds should not deter us from enjoying the benefits of using cards to pay. Then I announced that very soon a service that would enable card holders to switch off their cards like they switch off their phone would be introduced. That would be very good, some of them responded.

Though I felt that I won the debate as I left the salon that morning, I was forced to acknowledge that making Nigerians migrate to cards as the CBN and the banks desire won’t be an easy task. Personally I am a firm believer in electronic payment. I love using cards and I encourage it anywhere I have the opportunity. But that discussion made me realise that a lot of Nigerians have had disappointing experiences with electronic payments channels, which have made them lose confidence in them to the extent that they are not willing to try to trust again. You can’t blame them. A good example is a colleague whose wife was pregnant and had about N1 million in his account.

But exactly the week his wife delivered and wanted to withdraw money he was told he had no money and upon inquiry it was discovered that somebody has used card to make purchases from his account. Though his money was refunded after personal appeal to the banks’ chief executive, you won’t expect him to ever want to use card again?

That exactly is the challenge before the CBN and operators in the electronic payment industry ahead of the massive implementation of the cash limit policy and massive roll-out of PoS.

There is widespread morbid fear and distrust for electronic payment channels, which cannot be dismissed with a wave of hand. These is further reinforced by a mindset implied by my colleagues at the barbing salon, which is the belief that the perpetrators of e-payment frauds are so adept at it that they would always find a way to circumvent any security feature to have their way.

Thus addressing these concerns and lack of confidence represents a critical success factor to the implementation of the policy.

Sometime ago the CBN mandated banks to have ATM Help desks to address complaints related to card transactions. It is however doubtful if the CBN is monitoring to know whether the help desks are indeed addressing and resolving customers’ complaints. Because if they are, the pessimism may not be that strong otherwise one person at least should have testified to this in our salon discussion.

The reality is that while there are guidelines and regulations with provisions that protect Cardholders, the reality is that such protection does not go beyond the guidelines. Cardholders do not see any serious effort on the part of the authorities to protect them from the might of banks and unfair treatment received from their staff they fall victim of card fraud.

“You must have comprised your PIN,” the banks would insist and the customer would be abandon to lick his/her wound. A pathetic case was an elderly friend whose meagre salary was fraudulently withdrew. He told the bank, “I never used this card since you gave me, so how could I have compromise my PIN”. The bank just ignored him despite many visits and appeals.

The reality is without a strong and aggressive protection for cardholders with massive public campaign to enlighten cardholders about their rights and what to do to get fair hearing in the case of card fraud, the expected massive migration to card would be a mirage. This because as card frauds occur, and they would occur, and the victims feel unfairly treated by his/bank and the industry and share their experience, the distrust and lack of confidence would grow and spread. Since bad news spread faster than good news, these would halt and make a mess of the move towards a card dominated economy and society.