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Brazil’s Central Bank to regulate the marketplace and sub-acquirers settlement

04.07.2017

From September 4th, 2017, marketplaces and most payment providers (or so-called sub-acquirers) in Brazil will have to settle funds to its merchants through a unique entity: Câmara Interbancária de Pagamentos (CIP), a cross-bank settlement organization and member of the Brazilian Payment System (SBP) regulated by the federal authority.

Further strengthening regulation in the sector, this resolution forbids companies participating in payment schemes such as Visa and Mastercard from receiving funds directly from the acquirers on its own bank account before sending to the merchant.

Instead, funds will have to flow between a settlement bank and CIP, who will also receive and transmit the proper files to participants in the transaction, including acquirers, sub-acquirers, and marketplaces, according to each payment scheme, prior to depositing into the merchant’s bank account.

Closed loop payment schemes have been exempted from complying with such rules as long as they don’t surpass any of the established thresholds such as R$500 million in transactions and 2.5 million monthly active customers over the last 12 months of operation.

Through these measures, the Central Bank seeks to mitigate possible liabilities to the system, increase the transparency, Know Your Customer good practices and compliance in the sector, which in the long term will reduce concerns among merchants, service providers, and investors and further improve the quality of the services.

allpago is a leading payment solution provider for Latam, enabling global companies to sell their products in local currencies and payment methods.

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Author

Gabriel Barrios, Country Manager Brazil