Point of sale POS is increasingly becoming a popular means of receiving payments by most merchants. This is in addition to thousands of agent banking operators across Nigeria who use POS machines to complete transactions for members of their immediate community for a fee.
With the increasing importance and popularity of PoS machines, so is the increase in the challenge of using them – failed POS transactions that don’t get reversed instantly.
Ideally, when a POS transaction fails – the customer has been debited but the merchant did not receive the credit, most banks would automatically reverse the transaction and credit the customer for them to try again. This reversal usually happens within a few minutes.
But sometimes the customer does not receive a reversal which can lead them to believe that the merchant has received the payment or in some rare circumstances, the merchant can receive an alert for payment received which can later turn out to be a failed transaction. Here’s what to do in both scenarios.
Some reasons for failed POS transactions and explanation
POS transactions fail for different reasons. These reasons are usually printed on the receipt. Here is a list of some POS transaction error codes and what they mean:
|03||Invalid Merchant||The merchant should contact the bank/device issuer|
|91||Card Issuer Unavailable||The customer’s bank is currently not available. The customer can wait a bit and retry the transaction.|
|96||System Error||The customer’s bank is currently not available. The customer can wait a bit and retry the transaction.|
|01||Refer to Card Issuer||The customer should contact their bank. card likely damaged.|
|09||Request In Progress||The customer should contact their bank. card likely damaged.|
|57||Function Not Permitted to Cardholder||The customer should contact their bank. card likely damaged.|
|43||Stolen Card||The card has been reported as stolen or lost. The merchant should also retain the card with them and not give it back.|
|04||Pick Up Card||The card has been reported as stolen or lost. The merchant should also retain the card with them and not give it back.|
|05||Do Not Honor||The card has failed a security check, or the funds have been frozen due to account irregularities/fraud. The customer should contact their bank.|
|55||Incorrect PIN||The customer has entered wrong PIN. The card will be blocked on the third wrong attempt.|
|38, 75||PIN Tries Exceeded||The customer has entered wrong PIN thrice, should contact their bank.|
|13||Invalid Amount||An invalid character has been entered. The transaction should be retried with correct entries.|
|12||Invalid Transaction||An invalid character has been entered. The transaction should be retried with correct entries.|
|65||Exceeds Withdrawal Frequency Limit||Banks have default transaction frequency limit (the number of transactions permitted in one day). This means the customer has exceeded that limit. Has to wait till next day. Try alternative means of payment.|
|33, 54||Expired Card||The card is expired. The customer should get a new card from their bank.|
|51||Insufficient Funds||The balance in the account is not enough for the transaction being attempted. The customer should fund the account or try alternative means to pay.|
The most obvious step is for the merchant not to release any goods and demand for another payment even when the customer has received a debit alert. The customers debit will usually be reversed if the merchant did not receive the corresponding credit instantly.
Merchants should always have POS paper rolls available and in place for every transaction – the customer’s bank would ask for the slip as evidence of the failed transaction if the transaction is not automatically reversed within 72 hours
As high as 20% of all POS transactions fail, merchants and and customers should exercise maximum patience of up to 72 hours before suspecting fraud.
Failed POS transactions are common, customers should wait at least 72 hours after the failed transaction for their money to be reversed back into their bank account. If the transaction is not automatically reversed within 72 hours, the customer can approach their bank to lodge a complain with the transaction receipt.
Your bank will contact the merchant’s bank with the transaction receipt you provide to confirm whether or not they received your credit. Your money would be reversed once they confirm the transaction as failed. Note that you cannot contact your merchant’s bank on your own, you have to lodge the complain at your own bank that issued the ATM card.
POS reversal usually happens automatically within minutes but can sometimes take 24 – 72 working hours depending on your bank.
failed POS transactions happens when a customer receives a debit alert but the merchant did not receive the corresponding credit. This usually gets automatically reversed and the customer gets their money back within minutes.
You should collect the transaction receipt which can be used to complain with your bank. If the POS displays the transaction completed, your bank will confirm the date and time the merchant received the credit.