Vodacom Lesotho Clarifies Policy on Reversing M-Pesa Transactions

Vodacom Lesotho Financial Services (VCL FS), the operator of M-Pesa in Lesotho, has clarified its stance on reversing funds sent to the wrong account, citing strict legal and security frameworks that govern digital transactions.

According to the company, its policy aligns with the Central Bank of Lesotho’s Payment Systems Regulations of 2017. These regulations prohibit issuers from revoking or reversing an electronic transfer once it has been settled, except under specific circumstances.

“Regulation 17(2) ensures the finality and integrity of all digital payments. However, reversals are permitted if funds are sent to an account that is suspended, frozen, or linked to an inactive number,” VCL FS stated.

For transactions to active accounts, the company emphasized that funds cannot be retrieved without the recipient’s consent. This means that once a payment is successfully processed to a valid account, recovery is not guaranteed.

VCL FS urged customers to use M-Pesa’s built-in safeguards to prevent mistakes. The platform features a two-step verification process that displays the recipient’s name before a payment is confirmed. The system is designed to reduce errors and protect users from accidental transfers.

The company warned that once a transaction is finalized, recovery may not be possible. Users are therefore advised to carefully verify recipient details before sending funds.

By enforcing these policies, VCL FS aims to maintain the integrity of digital payments in Lesotho while ensuring that users are aware of the risks associated with incorrect transfers.