DEBINs May Be Used to Fund Synchronized Accounts until March 1, 2024
People who use recurring instant debit (DEBIN) to fund their own accounts held at payment service providers, and are familiar with the product, will have until March 1, 2024 to migrate to instant pull transfers.
As from January 1, 2024, new users will have to synchronize their accounts with instant pull transfers, according to a resolution adopted today by the Board of the BCRA.
The measure seeks to ensure that users of wallets (bank and non-bank) accustomed to using recurring DEBINs to deposit funds have a longer period of time to become familiar with instant pull transfers and can complete the migration in a way that does not affect their experience.
Instant pull transfers involve a request for funds or order to debit the sight or payment account of the user receiving the request and, prior authorization or consent, the immediate crediting of funds to the requesting user’s account. In this first stage, instant pull transfers are only enabled between accounts of the same holder. In many wallets they are identified as "money deposit" or "fund deposit.”
The holder of the originating account must validate their credentials only once and retains the power to cancel synchronization, providing greater security for their account. Fund transfers are made directly from one account to another, without going through third parties.
The recurring DEBIN was created so that a legal person may charge a natural person for a service it provides on a regular basis, not to fund natural persons' own accounts. It was designed to improve the collection process known as “automatic debit.” However, some payment service providers have used DEBINs so that their customers would fund their accounts by bringing money from their bank accounts but precluding the reverse transaction. Where DEBINs are used to fund an account, funds are transferred from the account where they are deposited to the destination account going through the intermediary’s account.
November 30, 2023
