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Truth about POS business you didn't know about

Often times, I see a lot of posts flooding everywhere about how you can make up to 250k to 400k a month doing POS business. Well that is the truth because it is a very lucrative business especially when you are located in a very nice spot.

There is a guy doing a POS business in my street and I must say that he is really making cool money because he has monopoly of the business in my area. People come from other streets close to ours to do transactions and he charges quite high.

So yes, POS business is one great money making venture. But have you ever wondered why POS points are very scarce and not many people are jumping into this great opportunity just anyhow? I mean, if there is such a business that gives you huge amounts of money daily, weekly and monthly why are people who do it not very much?

Well, I would tell you why. Unlike popular belief that you can just walk up to any bank or financial institution, get a POS machine and start doing the business, POS business is capital intensive and has a lot of things involved. You would need a lot of money to start a POS business. In fact, some banks would ask that you have at least 200k in your account before you can start a POS business.

I asked someone into the business how he got to start and found out the following:

1. You would go to the Bank or Financial institution you intend to be an agent with, fill in a form and submit some supporting documents.

2. After you have been scrutinized and you are deemed fit for it, you would be asked to pay, often times 50k (mostly for banks) for the transaction app to be installed in your phone. That is like paying for the POS machine upfront.

3. With the app installed in your phone, you would be expected to carry out some transactions with your phone first. The amount of transactions you are able to carry out with your phone would determine if you would he given a POS machine or not. They won't give it to just anyhow who is not working.

4. You would need another huge amount of money in your account that you would use to start transacting the business with.

5. You would also need to have a good spot, where you can be sure of getting enough customers daily and make great transactions.

So you see, it is not really an easy business like people make it seem. Before you decide to go into it, weigh the options and also try different financial institutions to know their criteria and which one you can meet. But if you know you can't meet them, please don't go into it because it is not for everyone. Let it not be that you started and failed or you lost your money.

I hope you found this informative. 

Feel free to drop your comments and questions