Redesigning DEBIN to Streamline Transactions

 infografía debin

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May 10, 2019. Under Communication A6698, the BCRA adopted improvements in DEBIN (Instant Debit) by redesigning the “Pre-authorized” DEBIN feature, now called “Recurring”.

The new DEBIN is mainly aimed at companies to facilitate frequent payments. This new tool only requires the client to set up a debit for the recurring payment of a particular product or service.

Some of the main changes in this feature are:

- With the simplified operating scheme, now participants are defined as: Ordering/Recipient Customers, Originating/Recipient Institutions and the Administrator (Automated Clearing House, ACH).

- There is a maximum interchange rate among banks. Recipient institutions can charge up to ARS4.50 per transaction.

- Removal of amount limits applied by the recipient institution for “recurring” DEBIN.

- Shorter term to request the reversal of the transaction (i.e., the debit return), from 90 to 30 days.

- Change of required information in authorized channels, with the aim of improving the experience of customers with institutions.

- Implementation of new risk policies by the administrator and at the financial institutions’ request, in order to identify and solve fraud issues.

The spot DEBIN, occasionally originated for a set amount with the recipient customer’s express authorization, will remain as it is at present (except that the ordering customer has no longer the need to join).

These mechanisms provide safety and access to a wide range of online debit and credit transactions, which contribute towards a more efficient payment system.

The DEBIN was established by the BCRA in 2016 as a direct transfer payment tool, which debits funds from the customers’ bank accounts upon request.

Administrator: it processes the transaction’s debits and credits and settles the net balance at the BCRA. This role is carried out by the automated clearing house (ACH).
Originating institution: institution which maintains the accounts to be credited by any issued DEBIN.
Recipient institution: institution which maintains the recipient customer’s account.
Ordering customer: holder of the account requesting that the originating institution issue a DEBIN.
Recipient customer: holder of the account receiving the DEBIN. The account is debited if the holder has set up the debit for the transaction or has expressly authorized it.

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