Pix Evolution and Implementation slide image

Pix Evolution and Implementation

FUTURE SUMMARY PRESENTATION IDEALIZATION EVOLUTION NUMBERS 2.3.3 Special Return Mechanism (MED) With the purpose of expanding the user protection measures, the BCB has established since November 2021 a structured process aimed at speeding up the return of funds to the payer in case of operational failures or a well- founded fraud suspicion. The MED allows funds to be quickly blocked in the fraudster/scammer/criminal's account, after a victim's claim, and to be returned to the payer account after the analysis process is completed, when deemed appropriate. It can also be triggered if there is an undue credit in consequence of an operational failure in the payer institution' systems. The mechanism does not apply to cases of typing errors (e.g.wrong payee's Pix alias), commercial disputes between users and transactions with well-founded suspicion of fraud in which the funds are destined to the account of a bona fide third party. In other words, the MED is not a chargeback mechanism (reversal of payment), as is the case with payment card arrangements. With the MED, institutions must follow standardized procedures within the deadlines established by the BCB and must use the infrastructure provided by the BCB to facilitate communication between the parties, providing greater agility and efficiency to the process and, thus, increasing the chances of the victim recovering the funds. 2.3.4 Anti-fraud and data protection rules and mechanisms implemented in the DICT It was created in the DICT the process for tagging Pix aliases and Tax ID numbers suspects of committing frauds in order to quickly identify accounts involved in fraud and also to prevent new scams from being applied to Pix users: mandatory fraud notification applicable to all Pix aliases and ID numbers involved in any fraudulent transaction. This information is shared with all participating institutions whenever a Pix alias is consulted and it should be one of the factors to be considered for the purposes of authorizing or rejecting transactions; definition of procedures for identifying and handling cases in which excessive Pix aliases consultations occur and do not result either in settlement or in an invalid Pix alias, with the aim of preventing data scanning attacks; and creation of specific consultations by participants to users' IDs, at any time and for any purpose, in order to verify associated fraud notifications. PIX INITIATION INITIATION SERVICE R$ INFOGRAPHIC 6 Pix flow via payment initiation service Transactional Payer Payment initiation service provider account provider ง R$ Payee Transactional account provider 2.4 Initiation service: the link that connects Open Finance and Pix In October 2021, after the launching of Open Finance phase 3, which covers the sharing of a payment transaction initiation service, Pix started to provide a new way of initiating transactions, through institutions so-called payment initiation service providers, that do not hold users' accounts nor the funds received from the provision of the service. With Pix, institutions that act BCB settlement system (SPI) solely for this purpose can provide the initiation service, so called "initiators", or institutions that act as a transactional account provider and wish to also provide this service. The main objectives for creating the initiation service are to increase competition in the ecosystem, allowing institutions that are traditionally outside the financial system to develop solutions that allow the initiation of a Pix; and enable the development of innovative solutions that reduce the frictions of starting a Pix and improve user experience, especially in e-commerce. 13
View entire presentation