GTBank removes POS processing fees for merchants and businesses

Leading Nigerian financial institution, Guaranty Trust Bank (www.GTBank.com) has announced the removal of processing fees on all GTBank POS terminals. The bank disclosed this in a statement seen by Technext. According to the statement, the removal of POS processing fees reinforces the bank’s commitment to supporting businesses with cost-effective payment solutions.

The removal of processing fees is an integral part of the bank’s Sero processing Fee initiative. Per the terms of the initiative, from February 2025, merchants and businesses using GTBank POS terminals will no longer incur Merchant Service Charges (MSC) when receiving payments from customers.

Speaking on the initiative, the Managing Director of Guaranty Trust Bank Nigeria, Miriam Olusanya, said the initiative was driven by the company’s zeal to always add value to its financial ecosystem.

“At Guaranty Trust Bank, we are always looking for ways to add value to our financial ecosystem. By implementing the zero processing fees on POS transactions, we are empowering businesses to get the full value of every payment they receive, whilst also ensuring a more seamless and efficient payment experience,” Olusanya said.

With this initiative, GTBank said all qualifying SME Merchants can now receive payments at zero cost. This will allow them to reduce operational expenses whilst promoting the merchant’s enterprise and enhancing customer experience.

The bank also said the Zero Processing Charge initiative aligns with its ongoing efforts to empower businesses with innovative financial solutions that drive growth and efficiency.

GTBank’s POS charges removal amid new ATM fees

GTBank’s removal of POS charges is coming at a time when the Central Bank of Nigeria (CBN) has imposed new charges on ATM withdrawals across the country. Customers who are withdrawing at the ATMs of their own banks and financial institutions in Nigeria will not be required to pay any ATM charges.

However, when withdrawing from another bank or financial institution’s ATM in Nigeria, if the withdrawal takes place on-site (within the bank’s premises) such a withdrawal would attract a charge of 100 naira for every 20,000 naira withdrawal.

If the ATM is not located on the bank’s premises, if they are offsite ATMs located outside bank premises like at shopping malls, airports, grocery stores or gas stations, providing access to banking services away from the traditional bank premises, such a withdrawal attracts the basic charge of 100 naira for 20,000 naira as well as a surcharge of not more than 500 naira per 20,000 naira withdrawal.

The CBN’s Acting Director on Financial Policy and Regulation, John Onojah, said the review of ATM charges is in response to rising costs of operation for banks and the need to improve the efficiency of automated teller machines (ATMs).

“In response to rising costs and the need to improve the efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria (CBN) has reviewed the ATM transaction fees prescribed in Sectio 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020,” the CBN said.

In line with the development, the CBN also announced the discontinuation of the three free withdrawals per month on ATM cards. Before now, it used to be that every ATM user had three free withdrawals per month before they started getting charged on the fourth. However, after this review, the three free monthly withdrawals allowed for Remote-On-Us (bank’s customers/Not-On-Us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply per the CBN.

The apex bank also expressed its belief that the review would ensure rapid deployment of ATMs nationwide.

“The review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service. Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1 2025,” the bank said.

See also: Investigation: Are bank staff colluding with PoS operators to rip off Nigerians?