The Argentine Fintech Chamber assured today that a measure by the Central Bank to prevent fraud and scams that implies turning off the Immediate Debit that is used to deposit money into fintech accounts, “it will affect 4 million people.”
The entity warned that almost three years ago the immediate debit (“DEBIN”) began to be used as a tool to deposit money into payment accounts.becoming one of the most valued anchoring channels by people, especially for its simplicity and security.
“In addition to its high levels of usability, the tool has very low fraud rates. From June 2022 to date, transactions that have been questioned by users are stable at a minimum of 0.02%which represents the lowest fraud rate for a means of payment recorded in the country,” the Chamber expressed in a press release.
For the organism, When the BCRA communicated its decision to eliminate this means of funding accounts and replace it with immediate “pull” transfers (“TIP”), it generated difficulties where there were none.
“This instrument was regulated in 2022 through Communication “A” 7514, which introduced a redirection process in obtaining user consent. Until now, TIP presented friction, making its use excessively difficult. In the tests for the implementation of TIP, the percentage of approved transfers reached only 10% of the total operations initiated by users. DEBIN, on the other hand, registers a success rate of 62%“they explained.
According to the Argentine Fintech Chamber, if this decision is implemented it will negatively affect the experience of millions of users who will be forced to enroll in this new system in their home banking to give their consent.
“The replacement of DEBIN – an effective and safe operation, which has achieved excellent adoption – with an incipient tool with a wide margin of improvement still to be covered, presents a risk of increasing fraudulent operations,” they observed.
Yesterday the BCRA established a series of modifications in the recurring DEBIN and pull transfers, two money transfer mechanisms which, from now on, will see validation processes reinforced to prevent cases of fraud and scams and to organize the instruments of the national payment system, so that they are used for appropriate functionalities.
In that sense, It will be sought that the users give their “express authorization” before the first debit and that the financial entity in charge of the operation explains the scope of the mechanism in which, to avoid confusion, it is clarified that it will be a regular and periodic debit.
Changes to recurring DEBIN – an immediate debit made periodically to or from a bank account or a payment service provider (PSP, better known as virtual wallets) – will be effective from December 1, 2023, and They include the obligation for banks or PSPs to “show the customer whose account will be debited a legend to confirm whether they accept that the debits requested by that provider be periodically made.”
Source: Ambito
