Regulatory Alerts2019-02-19
Merchant Acquirers and Acquiring Payment Card Transactions
The Supervisor of Banks issued this directive to regulate corporations providing payment card transaction acquiring services and banking corporations engaged in acquiring activities. The document establishes capital adequacy requirements based on debtors' balances, mandates the segregation of acquired funds in trustee accounts, and imposes strict risk management and merchant monitoring obligations. It further governs acquirer-merchant relations by prohibiting tying arrangements, enforcing timely fund transfers, and requiring the use of EMV and PCI security standards for transaction terminals.
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