Banks and other financial institutions charge customers transaction fees, so as a POS agent, nobody expects you to offer free banking services.  Your ultimate goal is to make a profit as a POS agent, right? That’s the goal of every business, too, but the truth is, hiking your service charges isn’t always the best way to achieve that. In fact, it can drive customers away.

Let’s say you charge ₦200 for a ₦5,000 withdrawal, and another agent nearby charges ₦100 for the same service. Be honest, if you were the customer, who would you go to? You’d likely choose the agent with the lower charge, and probably tell your friends too. I know I would.

The real trick is attracting more people to your Kiosk or shop. More customers mean more transactions, and that means more profit. 

In this post, you’ll learn how to set charges that keep you competitive, build trust, and increase your daily earnings.

What Are POS Charges?

POS charges are the small fees you collect from customers when you help them with banking transactions like withdrawals, deposits, transfers, or airtime purchases. For most agents, the minimum charge for a withdrawal starts at ₦100.

The POS business became popular because people prefer quick, easy banking without queuing at the bank. So, if your charges are too high, customers will look elsewhere. Not because they don’t like your service, but because they have options, and money is tight. They’ll choose the better option and save.

Your charges may be high, but that doesn’t mean you won’t get any customers. But instead of seeing 80 -100 customers in a day, you might only get 20–40. And that’s not the best way to grow.

How to Set Competitive POS Charges

Below are effective ways to set charges that bring more customers;

• Know Your Environment
  Look around and find out what other agents in your area are charging. If most agents charge ₦100 for ₦5,000, don’t go above that. Offering a ₦50 discount might make you the preferred choice. Remember, POS agents in busy markets or near bus stops usually charge a bit less to attract foot traffic. 
• Understand Your Customers
  Who are the people using your POS? If they are mostly traders, drivers, or students, they will be more price-sensitive. Keep your charges friendly. You don’t want to lose regular customers over ₦50. Kashzoo mPOS and app help agents monitor customer trends so that you can adjust wisely. 
• Offer Discounts on Bulk Transactions
  If someone wants to withdraw ₦50,000, instead of charging ₦1,000 (₦100 per ₦5,000), consider a flat ₦700 or ₦800. This encourages big transactions and shows the customer you’re fair. 
• Use Smart Pricing During Off-Peak Hours
  Offer small discounts during low-traffic periods, such as the afternoon or early morning. You can attract people who would usually wait till later or go elsewhere. It’s like your own “happy hour.” 
• Leverage Technology
  Platforms like Kashzoo let you track your daily income, customer visits, and peak hours. A Kaszoo POS will help you make data-based decisions, like setting a low charge when you notice fewer customers after your initial price hike. 

Benefits of Competitive Charges

Setting fair and competitive charges comes with long-term rewards:

• More Customers
  Low charges attract more people, especially in busy locations. People love to save, even if it’s just ₦50. More traffic means more transactions.
• Increased Profit
  When you serve more customers, your profit increases even if the individual charges are lower. Serving 80 customers at ₦100 each gives you ₦8,000. But 30 customers at ₦200 only gives you ₦6,000.
• Customer Satisfaction and Loyalty
  People come back when they feel valued. Friendly charges are a simple way to make your customers feel you care about them.
• Referrals and Word of Mouth
  A customer who finds your charges reasonable will likely tell others. That’s free advertising and it works. Many successful agents have grown their network simply by being affordable and consistent.
• Competitive Edge
  When everyone else is charging high, your affordable prices will make you stand out. This can help you become the go-to agent in your area.
• Trust and Community Support
  Keeping your charges fair shows honesty. Customers trust you more and are likely to come to you for other services, like bill payments or transfers. 

Our Take

Your POS business can grow fast when your charges are fair and competitive. Customers notice and appreciate agents who don’t take advantage of them. So, with more people coming to you, your profits will grow without needing to raise your prices.

If you need a POS machine that helps you track your transactions and offer insights into your peak and down times, Kashzoo is your go-to POS machine. Keep your charges friendly, stay consistent, and watch your customer base grow.