Changes to Payment Instruments to Prevent Fraud

The BCRA implemented changes to recurring instant debits (DEBINs) so that during the setup process users' express consent will be requested before the first debit in order to prevent fraud.

As from December 1, 2023, financial institutions and payment service providers that offer payment accounts (proveedor de servicios de pago que ofrece cuentas de pago, PSPCP) that receive a recurring DEBIN must show a message to the client whose account will be debited to confirm authorization to have charges debited at periodic intervals as requested by the relevant supplier.

In the same sense, it should be noted that recurring DEBINs may be cancelled by either the receiving client through the ordering client, or the receiving institution, as established by the regulations on “National Payment System - Instant Debit.”

A DEBIN is an online transfer in which the payee starts the process and the payer only has to accept it. In the case of the recurring type, this authorization is general and allows charges to be debited at regular intervals.

The BCRA also improved the operation of pull instant transfers between accounts of the same account holder to promote more efficient and safer transactions.

Main changes:

- The receipt and request of funds is limited to accounts such as savings account, salary and social security accounts, savings accounts for the payment of social aid programs, savings accounts for teenagers and universal free accounts.

- An initial limit of 2,500 units of purchasing power (unidad de valor adquisitivo, UVA) (approximately ARS727,000) per day and per account is set for ordering instant pull transfers in order to monitor behavior and make this transaction more widespread.

- Payment service providers that are not registered in the Registry of Interoperable Digital Wallets will not be able to order or receive instant pull transfers.

- Participants of the national payment system that currently use recurring DEBINs to fund their accounts must discontinue such transactions by December 1, 2023, and make instant pull transfers available to their clients.

Pull transfers are being implemented in phases and, as from August 7, can be used to fund accounts, i.e., to order funds between accounts of the same account holder to or from the account providers registered in the abovementioned registry.

Persons wishing to make these fund requests must previously enroll the accounts from which funds will be requested and give their consent. This mechanism aims at enhancing security.

September 14, 2023