The Bank of Ghana has issued a notice under Section 101 of the Payment Systems and Services Act, 2019 (Act 987), directing all payment service providers (PSPs) and settlement banks to hold funds collected on behalf of merchants in designated settlement accounts, distinct from their operational and business accounts. The directive aims to reinforce safeguards for merchant money and prevent PSPs from using the collections for purposes unrelated to merchant settlements.
Signed by the Bank’s Secretary, Aimee Vyda Quashie, the notice clarifies that PSPs are licensed to facilitate transactions and collect funds but are not deposit‑taking institutions. Consequently, they may not treat merchant collections as their own, nor pledge, encumber, or otherwise use the money for any purpose other than settling amounts owed to merchants.
Under the new rules, all merchant collections must be credited to settlement accounts and transferred to the merchants’ designated bank accounts within the settlement periods agreed in their service‑level agreements. PSPs are prohibited from withdrawing, transferring, pledging or placing liens on merchant funds, except to settle amounts due to merchants or to transfer legitimately earned fees and charges.
Settlement banks are likewise instructed to maintain accounts that are operated exclusively for settlement purposes and to prevent PSPs from accessing or using those funds for operational expenses, financing, investments or other unrelated activities. Only fees and charges agreed upon between the PSP and the merchant may be moved to the provider’s operational account as part of the settlement process.
The directive also requires PSPs and settlement banks to keep adequate records, internal controls and audit trails that demonstrate compliance with the safeguarding, segregation and settlement requirements. The Bank of Ghana may further mandate settlement banks to submit statements on designated merchant settlement accounts at intervals it determines.
All affected institutions have been told to take immediate steps to comply, including reviewing operational arrangements, agreements and internal controls. The move strengthens the central bank’s oversight of Ghana’s payment services industry, focusing on protecting merchant funds and ensuring timely transfer to rightful owners.
