New Regulations Enhance Payment Security
The Central Bank of Brazil (Banco Central do Brasil) announced significant new regulations on November 10, 2025, fundamentally altering the landscape of card transaction responsibilities within the country's payment system. Published as Resolution BCB No. 522, these rules place the direct onus on card brands to guarantee payments to receiving users, such as merchants and retailers, even if failures occur elsewhere in the transaction chain.
The primary objective of this regulatory update is to bolster the security, transparency, and efficiency of the Brazilian Payment System (SPB), while simultaneously reinforcing protection for those receiving payments.
Card Brands Assume Direct Responsibility
Under the new framework, major card brands, including Visa, Mastercard, and Elo, are now explicitly responsible for ensuring that transaction values are successfully transferred to the receiving users. This means that should an institution participating in the payment process—such as an issuing bank, a fintech, or an acquirer (the company operating card machines)—fail to complete the payment, the card brand must utilize its own resources to ensure the merchant receives the full amount of the sale.
The Central Bank emphasized that this change provides 'greater clarity as to the responsibilities of each participant' and strengthens the overall protection for payment recipients. Furthermore, the resolution prohibits card brands from delegating the responsibility for managing risks associated with sub-acquirers to the acquirers themselves.
Revisions to Chargeback Procedures and Market Principles
The new regulations also introduce important modifications to the chargeback process, which allows cardholders to dispute transactions. The financial responsibility of participants in a chargeback scenario is now limited to 180 days following the authorization of the transaction. Should internal rules permit a contestation beyond this 180-day window, the card brand will then assume full responsibility for covering the loss.
Additionally, Resolution BCB No. 522 reinforces the principle known as 'honor all cards.' This principle mandates that acquirers or sub-acquirers cannot discriminate against card issuers, meaning they must accept all cards of a given brand. This measure aims to prevent discriminatory practices and ensure broader acceptance of payment instruments across the market.
Implementation and Future Outlook
The new rules, which are the culmination of a public consultation conducted in 2024, came into effect immediately upon their publication. However, card brands have been granted a period of 180 days to adjust their internal regulations and submit formal requests for authorization to the Central Bank, ensuring a smooth transition and compliance across the industry.
These measures underscore the Central Bank of Brazil's ongoing commitment to fostering a robust, secure, and transparent payment ecosystem, providing greater assurance for both consumers and businesses operating within the country.
5 Comments
Bermudez
Excellent move by the Central Bank! Merchants finally get the protection they deserve.
Africa
While protecting merchants from transaction failures is a positive step, I worry about the increased compliance costs for card brands, which might ultimately be passed down to consumers or businesses.
Coccinella
The focus on transparency and security is commendable, but placing all the risk on card brands could potentially lead to less flexibility or higher barriers to entry for new payment solutions.
ZmeeLove
Card brands will just hike their fees to cover this new risk. Consumers will pay.
Habibi
Protecting payment recipients from failures is crucial for trust in the system. But the 180-day adjustment period for card brands seems tight for such significant changes, potentially leading to initial disruptions.