…warns there is no reversal once transaction is settled
THE VCL Financial Services (VCL FS), a subsidiary of Vodacom Lesotho, has strongly advised customers to carefully verify all transaction details before authorising payments on their M-Pesa mobile money platform.
In a statement issued this week, Vodacom emphasised that once an M-Pesa transaction is settled, it cannot be reversed.
This clarification comes in response to customer concerns about the reversal of funds sent to incorrect accounts.
The company’s policy aligns with the Payment Systems (Issuers of Electronic Payment Instruments) Regulations of 2017 issued by the Central Bank of Lesotho.
Specifically, Regulation 17 (2) prohibits any revocation or reversal of electronic transfers once transactions have been finalised, ensuring the security and finality of digital payments.
While VCL FS may reverse funds sent to accounts that are suspended, for frozen accounts, or those no longer linked to active mobile numbers, transfers made to valid, active accounts are legally settled and cannot be reversed without the recipient’s consent.
To protect customers, the M-Pesa system requires senders to verify the full name of the recipient before completing any transaction. Additionally, the sender must enter a confidential four-digit PIN to authorise payments, offering a final opportunity to confirm the transfer details.
If funds are sent to the wrong but active account, the reversal is the responsibility of the sender.
“These measures empower the customer with a final opportunity to meticulously verify recipient details and confirm their intent to transfer funds. In an instance where a customer sends money to an incorrect but active account, the responsibility to initiate a reversal request lies with the sender.”
The statement also urged customers to immediately report the issue to Vodacom’s Call Centre by dialling 114 and submitting a reversal request through the M-Pesa menu on their handset.
This request triggers an SMS to the recipient, who must approve the refund for the reversal to be processed.
VCL Financial Services also reminded users that they bear the ultimate responsibility for accuracy.
