First National Bank of Namibia (FNB) has warned retail agents against charging customers who make use of their Cash Plus Service.

The Cash Plus Service product allows both FNB and non-FNB customers to perform basic banking transactions such as deposits or withdrawals, eWallet cash-outs, and prepaid purchases at authorised retail agents.

The Cash Plus service increases financial access in remote areas and only requires a registered phone. 

So if someone receives an e-wallet, he or she goes to the retail agent to cash out the e-wallet. 

FNB enters into a contract with the qualifying retail agent, which earns commission. 

Rivan Meyer is the Head of the Commercial Transact Pillar at FNB Namibia Holdings.

 "As a bank, a client or a business who would qualify for cash plus would sign an agreement; they would then be able to offer these basic banking services. So, as a customer that wants to withdraw cash, I go to an agent, and I pre-stage that transaction on either mobile banking or the FNB app, and I go to the agent, and I say I want to withdraw the cash. so that agent is then obligated to give the cash, and there is no minimum charge they would levy for that transaction, nor is it required that they ask clients to buy something at their store before that transaction can be concluded."

The service is effective, especially in areas where there are no automatic teller machines, or ATMs, as we commonly know them. It also helps retailers increase customer traffic to their business. But of late, customers making use of the service at some registered retailers are being charged a fee, or they are compelled to buy a product at the shop.

Meyer says this is not allowed, as retailers earn commission from the bank.

"The reason why is that as an institution we also need to comply with regulations, and the Bank of Namibia, as the regulator, has been very clear on what banks are allowed to do as far as this product is concerned, so in essence, we have worked those regulations into the contracts that we sign with the agents, meaning it is very clearly stipulated that you are not allowed to ask for any additional payment for the service that you offer, nor are you allowed to, for example, force the client to do a purchase to buy a product at the store. That is still a client choice, but what we see as a value proposition to the agent is that by virtue of offering the service, they attract clients to come to their store to withdraw cash, and they might even use that opportunity to buy bread, sugar, and the basic commodities, and at the same time, they earn commissions for facilitating those transactions." 

Customers who come across retailers charging them a fee for the Cash Plus Service are urged to report such practice to the nearest FNB bank branch.