Circular No. 4022 — Procedures for Authorization and Cancellation of Debit Authorizations in Prepaid Payment Accounts

The Collegiate Board of Directors of the Central Bank of Brazil, in a session held on June 3, 2020, based on arts. 6, § 1, 9, items II, IX and X, and 15 of Law No. 12,865, of October 9, 2013, and having in view the provisions of art. 13 of Resolution No. 4,282, of November 4, 2013,

R E S O L V E:

CHAPTER I

OF THE OBJECT AND SCOPE OF APPLICATION

Art. 1 This Circular establishes procedures for the authorization and cancellation of authorization of debits in prepaid payment accounts.

Art. 2 For the purposes of this Circular, it is considered:

I - depositary institution: financial institution, payment institution or other institutions authorized to operate by the Central Bank of Brazil holding the account to be debited; and

II - recipient institution: institution authorized to operate by the Central Bank of Brazil recipient of the resources related to the debit in account or holder of the account to be credited.

CHAPTER II

OF THE AUTHORIZATION OF DEBITS

Art. 3 The realization of debits in prepaid payment accounts depends on prior authorization by its holder.

§ 1 The authorization of debits in prepaid payment accounts may be formalized at the depositary institution or through the recipient institution.

§ 2 The authorization referred to in the main text must:

I - have a specific purpose;

II - specify the account to be debited;

III - be provided in writing or electronically; and

IV - stipulate the term, which may be indefinite.

§ 3 The authorization referred to in the main text may specify dates for the realization of debits.

§ 4 It is admitted, when it is a matter of authorization of debits formalized by the client at the depositary institution, the specification of more than one account for the realization of debits, respecting the order of precedence defined by the holder.

Art. 4 In cases of debits related to the payment of credit operations or financial leasing, in addition to the requirements contained in art. 3, the authorization of debits in prepaid payment accounts must:

I - be individualized and linked to each contract; and

II - contain an unequivocal manifestation by the account holder regarding the eventual option to carry out debits resulting from a due obligation, including through partial postings.

Sole paragraph. The request for the manifestation must appear in a prominent form in the operation contract, with the possibility of free choice by the holder of the options mentioned in item II of the main text.

CHAPTER III

OF THE AUTHORIZATION OF DEBITS THROUGH THE RECIPIENT INSTITUTION

Art. 5 The authorization of debits in prepaid payment accounts formalized by the holder through the recipient institution must observe the following procedures:

I - communication between the recipient and depositary institutions must be carried out electronically, with a minimum advance notice of ten days for the debit to be effected by the depositary institution;

II - in the case of debits related to operations referred to in art. 4, the communication must:

a) inform that it is a debit authorization related to operations of this kind; and

b) indicate the debit options defined by the client referred to in item II of art. 4; and

III - the depositary institution must communicate to the account holder and to the recipient institution the acceptance of the authorization for the debit in account within two business days counted from the date of its receipt.

§ 1 The electronic means for the communication referred to in item I of the main text requires:

I - the adoption of a single common standard among the institutions involved; and

II - full accessibility of the institutions.

§ 2 The procedures provided for in this article apply to services provided by the recipient institution itself or by institutions and entities belonging to the same prudential conglomerate.

CHAPTER IV

OF THE CANCELLATION OF THE AUTHORIZATION OF DEBITS

Art. 6 The holder of the prepaid payment account is assured the right to cancel the authorization of debits.

Sole paragraph. The cancellation of the authorization of debits in prepaid payment accounts may be formalized at the depositary institution or through the recipient institution.

Art. 7 The cancellation of the authorization of debits formalized through the recipient institution must observe the following procedures:

I - the recipient institution must forward to the depositary institution the cancellation request received from the holder within two business days counted from receipt; and

II - communication between the recipient and depositary institutions must be carried out electronically, observing the provisions of § 1 of art. 5, with a minimum advance notice of one business day for the cancellation of the debit to be effected by the depositary institution.

Art. 8 The depositary institution must communicate to the account holder and, if applicable, also to the recipient institution, the acceptance of the cancellation of the authorization of debits within two business days counted from the date of its receipt.

Art. 9 The cancellation of the authorization of debits related to operations referred to in art. 4 must be requested by the holder through the recipient institution, observing the provisions of the main text of art. 6.

Sole paragraph. The cancellation referred to in the main text may be carried out at the depositary institution, if the client declares that they do not recognize the authorization.

Art. 10. The closure of all accounts subject to the authorization of debits, without the corresponding indication of another account to replace them, is equivalent to the cancellation of the granted authorization.

CHAPTER V

GENERAL PROVISIONS

Art. 11. The depositary institution must adopt procedures and controls that confirm the identity of the holder and ensure the authenticity of the authorization and the cancellation of the authorization of debits in the account.

Sole paragraph. In the case of authorization and cancellation of the authorization of debits requested by the holder through the recipient institution, the adoption of the procedures and controls referred to in the main text must be carried out exclusively by that institution, even when involving services provided by institutions and entities of the same prudential conglomerate.

Art. 12. The depositary institution must make available in a specific statement or specific section of the account statement the following information:

I - the list of valid debit authorizations in the account on the date of consultation by the holder; and

II - the values of the debits processed related to the authorizations referred to in item I to be posted in the account, at least, in the next two business days counted from the date of consultation by the holder.

Sole paragraph. The provisions of item I do not apply to debit authorizations related to the collection of fees on an occasional basis, as well as charges and taxes resulting from credit operations or services contracted by the holder.

Art. 13. The documents proving the authorization of debits, including their authenticity and their eventual cancellation, as well as the declaration referred to in the sole paragraph of art. 9, must be kept available to the Central Bank of Brazil for a minimum of five years, counted from the end of the term of the authorization.

Art. 14 Institutions must indicate to the Central Bank of Brazil a director responsible for compliance with the obligations provided for in this Circular.

Sole paragraph. The director mentioned in the main text may perform other functions in the institution, provided there is no conflict of interest.

Art. 15. Payment institutions, when acting as recipient institutions of resources related to the authorization of debits in deposit accounts or in registration accounts referred to in Resolution No. 3,402, of September 6, 2006 (salary account), must observe the provisions of arts. 3, 5, 6, 7, 11, 13 and 15 of Resolution No. 4,790, of March 26, 2020.

Art. 16. This Circular enters into force on November 3, 2020.

Otávio Ribeiro Damaso Director of Regulation