The Bank of Ghana has announced the establishment of new merchant account categories for merchant payments.

“This is to ensure that Small and Medium Enterprises (SMEs) that do not meet the stipulated merchant requirements stated under the Payment Systems and Services Act 2019 (Act 987) get the opportunity to access a merchant account tailored to their needs,” the Bank of Ghana remarked.

Furthermore, the Bank of Ghana says the rationale for embarking on this exercise hinges on the fact that “section 32 (1) of Act 987 mandates categorisation of customer electronic money account on risk-based Know Your Customer (KYC) requirements, which is evidenced by the tiered KYC account structure in the First schedule of Act 987

“The tiered account structure ensures that different customer types are able to sign on to an electronic money account suitable to their needs, thereby promoting inclusive access to digital payments,” the Bank of Ghana added.

Contrary to this, merchant account requirements under Act 987 can be met only by merchants that have been registered as corporate entities to the exclusion of SMEs, the Bank of Ghana opined adding that “this apparent misalignment of digital payments at merchant point of sale undermines the national digitisation agenda on account of SMEs constituting over 85% of businesses in Ghana”.

To remedy the situation, the Bank of Ghana has established tiered merchant account categories on risk-based KYC requirements with commensurate transactional limits.

Detailing the various merchant categorization requirements, in respect of Tier 1 which covers a small size entity with average monthly transaction value of not more than GH₵5,000.00, a merchant is supposed to provide a “Biometric National Identification Card, Voter’s ID, Passport, or any type of identification that is stated under section 35 of PSSA, 2019; Metropolitan, Municipal or District Assembly license to operate, or a tax receipt” to fulfil minimum due diligence requirements.

For Tier 2 category which centres on a medium size entity with an average monthly transaction value of between GH₵5,000.00 and GH₵15,000.00, to meet minimum due diligence obligations, all the requirements of a Tier 1 merchant holds in addition to the provision of a Tax Identification Number (TIN).

A Corporate entity which has an average monthly transaction value above GH₵15,000.00 falls under the Tier 3 category, according to the Bank of Ghana and such a merchant is obliged to provide the following:

“Certificate of incorporation; Certificate to commerce Business; Tax Identification Number (TIN); Bank Account information and Any other documentation that the Bank of Ghana may require” to meet minimum due diligence expected.

In relation to KYC account type for Tier 1, Tier 2, and Tier 3, the Bank of Ghana alerts that maximum account balance limit should be GH₵2,000.00, GH₵15,000.00, and GH₵30,000.00, respectively and for monthly transactional limit, with the exception of Tier 1 which is pegged at GH₵6,000.00, the other Tiers have no limit.

The Bank of Ghana has however cautioned that “this limit applies to receipts only” urging the general public to be guided accordingly.

To remedy the situation, the Bank of Ghana has established tiered merchant account categories on risk-based KYC requirements with commensurate transactional limits.