POS
POS is a payment terminal, allowing to accept cashless payments on spot within seconds.
To use the service, the Merchant Point (a legal entity or sole proprietor operating as a trade and/or service point) must submit to the Bank an application for POS service provision, the documents required by the Bank, and open a bank account with the Bank.
Within up to 10 business days after receiving the Merchant Point’s application, provided that all documents and requirements requested by the Bank are duly submitted and fulfilled, the relevant service agreement shall be concluded between the Bank and the customer.
Within up to 10 business days after signing the agreement, the Bank shall provide the Merchant Point with a POS terminal for use or install the relevant software on the latter’s device and activate the POS service.
The Merchant Point shall ensure:
- installation and safekeeping of the POS terminal at the location agreed upon with the Bank,
- availability of a reliable and continuous communication connection and/or power supply for the POS terminal; in case of malfunction, the Bank must be informed immediately, and all possible measures must be undertaken to restore the connection,
- execution of transactions only by duly authorized employees who have completed the relevant training and are properly familiar with the requirements established by the Guidelines,
- confidentiality of completed transactions,
- safeguarding of information relating to the Cardholder, the Card, transactions, or related data,
- proper fulfillment and compliance with all requirements established by the Guidelines,
- immediate notification to the Bank in case the POS terminal provided by the Bank is damaged, lost, or otherwise harmed, as well as full compensation for the damages incurred by the Bank,
- that no additional fees are charged to the Cardholder for carrying out card transactions, whether in cash or by any other means,
- that no cash funds are provided to the Cardholder in exchange for non-cash transactions due to cancellation, erroneous execution, or on any other grounds.
The commission fees charged by the bank for organizations having a sale turnover of up to AMD 150.000.000
Depending on the type code of the merchant outlet (Merchant Category Code – MCC), in accordance with the published Annex, the Bank has established maximum commissions charged for cashless transactions made through POS/Cash Register POS terminals for business entities with an annual sales turnover of up to AMD 150,000,000, according to which:
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By transaction type |
For transactions carried out by cards of Armenian Card (ArCa) payment system |
For card transactions of Local (issued by RA banks) cards of Visa and MasterCard payment systems |
For card transactions of foreign international (not issued by RA banks) cards of Visa and MasterCard card systems |
for transactions made via ArCa QR code |
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Size of maximum commission fee |
0.5% |
0.9% |
3 % |
1.2 % |
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If the total monthly turnover of transactions made by the Service Outlet through POS terminals does not exceed AMD 50,000 (fifty thousand), then the Service Outlet shall pay the Bank the following commissions for that month: |
City of Yerevan |
AMD 4,600 |
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Regional cities |
AMD 3,000 |
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Villages |
AMD 1000 |
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The commission fees charged by the bank for organizations having a sale turnover of AMD 150.000.000 and more
The Bank has established the following maximum commissions charged for cashless transactions made through POS/Cash Register POS terminals for all business entities whose type of activity or Merchant Category Code (MCC) is not included in the published Annex, or whose annual sales turnover exceeds AMD 150,000,000.
|
By transaction type |
For transactions carried out by cards of Armenian Card (ArCa) payment system |
For card transactions of Local (issued by RA banks) cards of Visa and MasterCard payment systems |
For card transactions of foreign international (not issued by RA banks) cards of Visa and MasterCard card systems |
for transactions made via ArCa QR code |
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Size of maximum commission fee |
1.2% |
2.3% |
3 % |
1.2 % |
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If the total monthly turnover of transactions made by the Service Outlet through POS terminals does not exceed AMD 300,000 (three hundred thousand), then the charged monthly commissions/including taxes/ will amount to: |
AMD 3000 |
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If the total sum of monthly turnover of more than one Cash Register POS terminal bought by the business entity is less than AMD 300,000 (three hundred thousand), the charged monthly commissions /including the taxes/ will make |
AMD 3000 |
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If the monthly turnover of any of more than one Cash Register POS terminal provided by the bank is less than AMD 600,000 (six hundred thousand), the charged monthly commissions /including the taxes/ charged from each terminal will make |
AMD 6000 |
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Following the activation of Cash Register POS terminal issued by the bank within 3 (three) years after the notice on unilateral termination of the agreement or termination of the use of device the early termination fee/including the taxes/ charged by the service outlet amounts to |
AMD 180.000 |
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After replacing the POS terminal provided by the Bank or the Cash Register device acquired by the business entity (if the service is activated through a Cash Register POS terminal), within 1 (one) year, in case of unilateral termination of the agreement or notification of termination of device usage, the early termination fee charged from the Service Point (including taxes) amounts to: |
AMD 50.000 ՀՀ |
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THE BANK DEFINES NO SERVICE FEE FOR INSTALLATION OF POS/CASH REGISTER POS TERMINAL OR ACTIVATION OF SERVICES |
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If the Trade and Service Point does not ensure a minimum turnover of AMD 900,000 from cashless transactions made via POS terminals (excluding Cash Register POS terminals) for 3 consecutive months, the Bank shall have the right to early terminate the POS terminal service agreement and discontinue servicing the Trade and Service Outlet.
The Service Outlet shall pay the Bank’s commissions at the moment the transaction amount is credited to the bank account maintained with the Bank.
Transaction amounts are credited to the customer’s bank account within up to 3 (three) business days following the transaction.
No commission is charged for cash withdrawal from the Service Outlet’s bank account of cashless payment amounts received via POS.
Changes to tariffs and other terms shall be published no later than within 3 business days, and no later than the provision of the service under the amended terms.
The client- the head of a legal entity (or sole proprietor) - must visit the Bank’s head office or a branch in order to submit the relevant application and open an account for the installation or activation of a POS/Cash Register POS or virtual POS payment terminal, presenting the documents required for account opening. The list of required documents for account opening can be found here (link).
For the purposes of customer due diligence as defined by the Law of the Republic of Armenia on Combating Money Laundering and Terrorism Financing, the Bank may, based on the “Know Your Customer” (KYC) principle, request additional documents or information, as well as ask further questions during verbal communication with the customer.
Under the Foreign Account Tax Compliance Act (FATCA), in order to determine whether the Bank’s customer is a U.S. taxpayer, the Bank may also collect additional information.
The Merchant Point shall refund the Cardholder / payment initiator in case of transaction invalidity or any other grounds exclusively through the return of the transaction amount to the Bank.
The Bank’s POS service information summary is available here.
The services are provided to individual entrepreneurs and legal entities.
In case of temporary or permanent suspension of the service, the Bank shall publish a relevant notice.
“Your Financial Guide” — www.fininfo.am — is an electronic system that facilitates the search and comparison of financial services offered to individuals and helps them choose the most suitable option.
The Merchant Point shall have the right to request the Bank to ensure the uninterrupted operation of the POS terminal, to take prompt measures to eliminate any malfunctions in case of disruptions, and to perform necessary software updates of the POS terminal.
The forms and procedures of communication between the Parties shall be defined by the Agreement or by mutual consent of the Parties.
The Merchant Point shall have the right to unilaterally terminate the Agreement with the Bank by providing 30 (thirty) days’ prior notice to the Bank, provided that all obligations and payments to the Bank are fully settled by the termination date and the POS terminal is returned.
In case of disclosure of confidential information to third parties by the Merchant Point, the Merchant Point shall pay a penalty to the Bank in the amount of one hundred times the statutory minimum wage and shall fully compensate all damages incurred by the Bank as a result thereof.