The National Bank of Rwanda (BNR) has cautioned businesses which use Point of Sale (POS) devices against charging customers, who use electronic cards to pay bills, transactional fees.

In a statement sent to The New Times on Thursday, Doreen Makumi, the central bank corporate communications expert, said they had identified some business entities that have been charging clients the fees, saying it is illegal.

Makumi, however, did not identify the culprits.

"BNR has ‘taken action’ by reminding them of the regulation that prohibits surcharging customers making payments using POS,” she said.

The measure (outlawing transaction fees) is in place to encourage the use of POS devices, which are vital in promoting a cashless economy.

There were over 1,057 POS devices in the market as at June last year, an increase from 99 in 2010, according BNR statistics.

The devices are mainly used by merchants like hotels, supermarkets, restaurants, and tour and travel agents. The devices are owned by commercial banks, which partner with various POS agents to allow clients pay using electronic cards such as VISA and Smart Cash cards.

Makumi said BNR has intensified monitoring of merchants, adding that is also encouraging people to report any businesses that charge them for using POS.

She said besides cautioning them, BNR does not punish the culprits, noting that the central bank does not supervise merchants directly.

"When we discover merchants imposing fees on customers, we warn and report them to the bank which owns the POS.

"We advise the bank to follow up on the case and it is the bank which is subject to sanctions once it does not respect BNR regulations,” she explained.

ben.gasore@newtimes.co.rw