7 POS business risks to watch-out for in 2023
As lucrative as POS Business is, it has its own risks just like every other business; one might think that there are little or no risk involved in operating a POS centre. In this post, I will share with you the major risks involved in operating a pos business centre in Nigeria
The truth remains that entrepreneurs who set up POS business centre at strategic location within town are making good money on a daily basis; they are generating profits that can build an empire.
But just like every other business that involves money handling, there are risks involved in running a POS business centre either as part time business or full time business.Do not fail to read Benefits of Bead Making as a Home Business in Nigeria
Honestly speaking, POS Business is one of the high risked businesses in Nigeria because of the following factors:
1. Money handling
Money handling is sweet, but it can also land you into big troubles that can take you to jail. Please note that counting money in large amount everyday is not going to be an easy task. There is the possibility of making some mistakes while counting.
Remember, in a POS center, there is no one to verify any amount of money you counted if it is correct or not, it is just you and the depositor or the with-drawer.
2. Environmental security
I have seen many POS centers that are located in areas that are prone to criminal activities. Citing a POS business outlet in an environment that is with little or no commercial activities most time with only you standing out could mean trouble. Many operators have been robbed or killed.
3. High level of fraud
Another risk involved running this business the current high level of fraudulent activities. There are so much bad elements in our society are bent on ruining another fellow’s life and business just to get rich quick or for other selfish purposes.
These people carry out fraudulent activities such paying in with fake currencies, sending fake alerts, running away with your money and many more.
Some tips to detect fraudsters:
• Always in a hurry.
• Acting like they are too rich, feels irritated and always put up a drama when their card doesn’t pay.
• Some appear very gentle but always have a story to tell you.
• Some will distract you with empty credit cards to monitor your surroundings and where you drop the money.
• Some make fake transfers and claim it was successful by showing you a fake debit alert.
• Some of them make use of cloned cards that can hack your machine once it is slotted in.
When cash at hand is exhausted, if you are not careful and secretive enough, your movement to the bank or home to bring in more money could be tracked by criminals.
This could happen through the phone calls you make, the text messages you sent, or even by the words of your mouth.
There is also the possibility of your sales girl/boy willingly or ignorantly revealing the source/particular bank you get your cash from to customers who might be planning to rob you.
5. POS PIN code
Most modern POS machines can only allow transactions to be carried out when a given PIN code is imputed. If this PIN code is mistakenly exposed to the eyes of a criminal they can have access to your wallet and every other financial benefit affiliated with the machine if they can lay their hands on your POS machine.
6. Network Issues
As you already know, internet network connection is never stable in Nigeria especially in banking system; the internet connection can randomly misbehave. It is very possible that transactions are held up in the clouds, while the customers are already debited; it can happen the other way round also.
In most times, the customers get debit alerts, while the POS manager doesn’t get credited. In some cases the transaction is reversed by the bank, other times it just stays in the clouds.
Network issues originating from the banks and service provider of the POS can lead to either discouraging the customers from patronizing or even to the extent of receiving arrest threats by customers.
The honesty and integrity of the person you employ to run this business on your behalf matters so much because there are some kinds of people who ruin your business.
Most times it is advisable to employ a family member, other times it is better to employ an honest stranger. However, in all, the honesty of whoever you are employing matters.
The ball still lies in the court of the employer or business owner. Just make sure you employ a trust worthy person (boy/girl) if possible let whoever you are employing bring a guarantor. Do not get fooled by appearance or first time impression.