The Central Bank Implemented a New Online Immediate Debit Payment Service

Pursuant to its aim to provide a wide range of technological tools within the financial system (see “New Regulation Implementing the Mobile Payment Platform” in Marval News # 162, and “New Regulations towards a Digitalized Financial Sector” in Marval News # 165), the Central Bank of Argentina (the “Central Bank”) issued Communiqué “A” 6099 introducing a new payment method: the immediate debit (the “DEBIN”, after its Spanish acronym).

The DEBIN allows bank customers to authorize goods or service providers (the “Providers”) to directly collect payments from their accounts. This payment method will be available through either web or mobile applications, and consists of:

• A request for authorization of debit by the Providers;
• An authorization for the debit by the buyer or consumer;
• An online debit to the bank account of the buyer or consumer;
• An online credit to the bank account of the Providers.

This service will be available to bank account owners 24 hours a day, 7 days a week. Transactions in Argentine Pesos and in US Dollars will be allowed, provided that such transactions are performed between bank accounts with the same currency.

Although certain aspects of this new payment service —such as security measures, and transaction monitoring— are still pending  further regulation,  Communiqué “A” 6099 determines the responsibilities of the Financial Entities and Low Value Clearing houses involved in the functioning of the DEBIN, as well as the regulation applicable to other operative aspects thereof.

This new payment method adds up to a list of regulatory innovations issued by the Central Bank during the course of the end of 2016. Such innovations are particularly welcome in a context in which —as is the case of FinTechs— the environment is constantly changing and requiring new efficient, secure and more user-friendly transaction tools.