This Monday, the 10th, the Central Bank published new rules for so-called payment arrangements – which allow services such as money transfers, withdrawals and purchases.
The resolution makes it clearer that card brands – such as Visa, Mastercard and Elo – are responsible, without exception, for ensuring payment of all transactions to the receiving user, including the use of their own resources, if the protection mechanisms adopted are insufficient. The regulation is the result of Public Consultation 104.
The resolution takes effect immediately, but companies will have 180 days to file with the BC a request for authorization of changes covering all necessary adjustments. The arrangements remain valid until the changes are authorized.
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According to the BC, the standard increases transparency regarding the implementation criteria and the dimensioning of mechanisms and transfer and financial risk management to which participants in the payment chain (such as banks and card issuers) are subject. The objective is to make clear the role of each institution if there is a failure in the payment flow.
“The regulations give discretion to the creator of the arrangement in choosing the financial risk management mechanisms to be adopted by the payment arrangement, without exempting the creator from final responsibility for the settlement of all transactions, even in the case of insufficiency of these mechanisms”, added the monetary authority.
The new rule also guarantees that the liability of participants in requests for transaction reversal by the payer (chargeback) is limited to 180 days, counting from the authorization of the payment transaction. After this period, the responsibility remains with the flag, if the rules of the arrangement allow it.
The brand is also responsible for prohibiting the requirement for guarantees between participants, and the possibility of sub-accreditors restricting or discriminating against issuers, a rule known as “honor all cards”.
The brands also become solely responsible for monitoring and managing the risks of the participants in the arrangement.
According to the BC, the resolution also gives more robustness to the regulatory framework on topics such as interoperability between payment arrangements, information sharing, processes for authorizing, changing and canceling arrangements, the obligation for sub-accreditors to fully participate in the centralized settlement and clearing system and the transparency of fees paid by participants in the arrangement.
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“Finally, it is worth highlighting that specific commands were introduced to improve the management of the risks of fraud and scams, the prevention of money laundering and the financing of terrorism and the proliferation of weapons of mass destruction, as well as conduct in the relationship with paying users, in order to align control procedures within the scope of payment arrangements with those prescribed for the National Financial System”, says the authority.
