MMG says additional agent fees “not sanctioned” by company

Mobile Money Guyana (MMG) has made it pellucid that it has not authorised additional fees being charged by some of its agents for transactions, including deposits, amid growing complaints from consumers. Responding to questions on reports of agents imposing separate cash fees on customers in addition to the standard transaction costs, MMG said the charges are not sanctioned by the company and that its official fee structure has remained unchanged for the past year. “This is not sanctioned by MMG. There is a fixed commission, no changes were made to these,” the company said. The response comes as consumers increasingly raise concerns over fees being imposed by agents for transactions that were previously not subject to additional charges, including deposits. MMG maintained that of this is being done then the agents are operating outside the company’s approved fee structure when imposing the additional charges.
However, the unauthorised charges have been causing much complaint among consumers, who described the fees as inconsistent, unclear and in some cases, sprung on them without warning at the point of transaction. “I was recharging my wallet to pay a utility bill. I handed the agent the cash and I was asked if I wanted to have the fees taken from the amount or if I would pay separately. The fee was $200. I have never deposited at this particular agent before. In the past, I had done withdrawals,” MMG customer, Gary Foo, recalled of his recent experience of being charged an additional fee for a transaction for the first time three weeks ago.
The company noted that it had not changed its fee structure for deposits and withdrawals in the past year, with the last changes being made three years ago, when it was sanctioned by the Bank of Guyana (BOG).
“This was done approximately three years ago and this is a direct proportion of approved fees by Bank of Guyana,” the company said.
Originally created as a subsidiary of GTT, MMG has been operating since 2013 as a regulated mobile money provider. It was launched as the country’s first electronic wallet and offers a secure platform for payments, shopping, money transfers, phone top-ups and more. The platform charges no monthly fees.
As Guyana’s only mobile money provider, MMG is regulated by Guyana’s central bank, the Bank of Guyana.
The company confirmed it does not currently plan to adjust the commission rates agents say are driving the practice, citing rising operating costs, “There is a rise in cost of operation for MMG. Last November MMG installed a new Mobile Finance System with upgraded technology and capabilities, however this comes at higher cost to support as well.”
According to several consumers the Guyana Times spoke with, the arbitrarily applied fees range from $100 to as much as $3,000, depending on the monetary value of the transaction. However, small agents are defending their unilateral decision to start charging their own fees, claiming that the commissions paid by MMG are unviable.
However, in light of the current situation of complaints from consumers, the company noted that it will shortly be publishing the current fee schedule for deposits and withdrawals that consumers can reference.
For consumers with an account, the fees are automatically deducted from a customer’s wallet balance. To recharge their accounts, customers can make a deposit at agents, transfer money from local bank accounts, or deposit using Visa cards. Visa deposits incur a fee of 5 per cent, while direct deposits through an agent were previously free of charge.