The Bangko Sentral ng Pilipinas (BSP) is giving the local payments industry more time to put up their respective systems that would quickly and appropriately resolve complaints from consumers who encounter problems with their electronic fund transfers.
In a memorandum signed by Governor Eli Remolona Jr. on Dec. 27, the BSP approved the extension of the transitory period for compliance with a previous circular dated June 1, 2024, that outlines the consumer redress mechanism standards for digital fund transfers.
The memo said the transition period that was previously set to end on Dec. 31 this year has been stretched to three more months. This means the new deadline for regulated entities is now on March 21 next year.
“The BSP remains committed to supporting the payments industry throughout this transition,” the document read.
The June 2024 circular from the central bank sets the minimum requirements that the payments industry must meet to ensure the timely resolution of consumer concerns relating to their electronic fund transfers.
Building trust
This is meant to build trust and confidence in the local digital payments system, which has gained popularity since the height of the pandemic.
The old circular requires the operators of payment systems to immediately notify both the sender and receiver of funds about the accurate status of the transaction. The BSP said the financial firms must use “effective mode/s of notification” that use “common language” that consumers can easily understand.
Consumer protection
In cases of multiple debit transactions and failed fund transfers, the central bank said the amount debited from the sender’s account must be returned within one hour for instant payments, and within two hours for large-value transactions that typically go through batch clearing and settlement.
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Such provisions for return of funds do not apply to unauthorized or erroneous transactions.
The BSP also wants members of the payments industry to establish parameters when collecting and returning fees on electronic fund transfers. In all cases, such rules on fees must be clearly communicated to consumers.
The central bank likewise wants clear operating guidelines defining the actions required from both payment operators and consumers during disruptions that affect the efficient delivery of a digital money transfer.
Lastly, the BSP stressed that payment operators have the primary responsibility of communicating to the sender of funds the status and updates on investigations and resolutions of unauthorized or erroneous transactions.