10 Essential Steps to Take When Hiring an Agent for Your POS Business

When it comes to money, you can’t afford to hire just anyone as your POS agent. Doing so could lead to significant losses, as there have been numerous cases of agents absconding with their employer’s funds. Think about it—entrusting someone with a large amount of cash can be highly tempting for them, especially when their primary motive for taking the job is to earn money. Without proper safeguards, this could easily become a recipe for disaster. Therefore, it’s essential to take legal and precautionary steps before hiring a POS agent to ensure that your business remains safe and secure. If you can implement at least 6 of the 10 recommended steps, your money should be much safer, and the likelihood of running into serious issues will be significantly reduced.

To avoid situations where an agent might abscond with money in your POS business, here are the key legal and precautionary steps to follow:

1. Draft and Sign an Employment/Agency Agreement

Clearly define the agent’s responsibilities and limitations. Include a non-disclosure and non-compete clause to prevent misuse of sensitive business information. Specify the consequences of absconding with funds (e.g., legal action, financial penalties). Include terms for termination of the agreement. Ensure the contract is signed by both parties in the presence of witnesses. Notarize the agreement if necessary, for added legal weight.

2. Conduct Background Checks

Verify the agent’s identity through valid means (e.g., National Identity Number (NIN), Bank Verification Number (BVN), or international passport). Contact references from their previous employers or businesses they’ve been involved with. Check their criminal record or history, if possible.

3. Collect Security Deposits

Require a refundable security deposit or bond as financial assurance. This deposit can serve as a safeguard against theft or fraudulent activities.

4. Register the Agent with Relevant Authorities

Use a platform like Nigeria Inter-Bank Settlement System (NIBSS) or partner with banks to register your agent officially. Ensure they have a valid operational license under the Agency Banking framework.

5. Maintain Monitoring and Tracking Systems

Equip your POS terminal with software that tracks all transactions in real-time. Regularly audit the agent’s transactions to ensure compliance.

6. Set Up a Bank Account for Operations

Create a separate, monitored account for the POS business. Link the POS device directly to this account so all transaction funds go directly into the account, minimizing physical cash handling by the agent.

7. Provide Training and Certification

Train agents on operational procedures, customer service, and financial accountability. Issue a certification to reinforce professionalism and accountability.

8. Obtain a Guarantor

Request a reliable guarantor who will stand in for the agent and provide their details (including a signed guarantee agreement).

9. Monitor Compliance with Reporting Standards

Require the agent to submit daily or weekly reports of their transactions. Perform periodic reconciliations between the reported figures and the bank’s records.

10. Have Insurance Coverage

Insure your POS business against theft or fraud, which might also cover losses caused by rogue agents.

By following these steps, you can ensure your POS business remains secure. If you implement even a few of them, the chances of losing money due to agent fraud will be minimized.