A Lost POS refers to a situation in which a POS device provided to a merchant by a bank or institution for use cannot be retrieved for any reason.
Since POS devices are classified as fixed assets of the relevant bank or institution, it is very important for banks and institutions to track these devices.
Some merchants may report that the device is lost and directly request that the penalty amount be charged, while other merchants may not notify us (or may be unable to notify us) that the device is lost, or may not even be aware that the device has been lost.
When managing the Lost POS process, it is essential to ensure reporting and tracking at regular intervals. In addition, terminals that generate no turnover for an extended period are highly likely to turn into Lost POS cases.
Although detecting a Lost POS involves a separate process, it is necessary to determine the amount to be charged for a lost POS, and merchant agreements must always include a clause stating that this amount will be charged to the merchant. (I recommend seeking advice from your legal department.)
When managing the Lost POS process, properly managing field teams, vendors, and customer relations is also particularly important in order to minimize complaints.