CIEX No. 26/2020: Modification of Requirements and Conditions for Cash-Out Operations of Electronic Payment Instruments in Affiliated Merchants via POS Terminals

JOAQUIN ROLANDO LOPEZ BAKOVIC MANAGER OF FINANCIAL ENTITIES cENTRAL BANK OF BOLIVIA ASA/JRLB/ropr/pmms/erai C.c. Archive EXTERNAL CIRCULAR GENERAL FRAMEWORK La Paz, June 5, 2020 CIEX No. 26/2020 FROM: GENERAL MANAGEMENT MANAGER OF FINANCIAL ENTITIES TO: FINANCIAL INTERMEDIATION ENTITIES, COMPANIES OF COMPLEMENTARY FINANCIAL SERVICES PROVIDING PAYMENT SERVICES, ELECTRONIC CARD ADMINISTRATORS, CLEARING AND SETTLEMENT CHAMBERS SUBJECT: MODIFICATION OF THE REQUIREMENTS AND CONDITIONS FOR CASH-OUT OPERATIONS OF ELECTRONIC PAYMENT INSTRUMENTS IN AFFILIATED MERCHANTS VIA POINT OF SALE TERMINALS - POS

Gentlemen:

The Central Bank of Bolivia, within the framework of its powers as regulator of the national payment system and in accordance with what is established in the Regulation of Payment Services, Electronic Payment Instruments, Compensation and Liquidation, approved by Supreme Decree No. 137/2019 of October 8, 2019, sends for its application and compliance, the Requirements and Conditions for cash-out operations of Electronic Payment Instruments (EPIs) in Merchants, rendering Circular Externa CIEX No. 63/2019 of October 21, 2019, null and void.

Electronic Card Administrators and EPI issuing entities must make adjustments in their systems, necessary software configuration in POS terminals, and other necessary activities for the provision of the service, until December 31, 2020.

Sincerely,

ABEL SANJINES ALVAREZ GENERAL MANAGER a.i. CENTRAL BANK OF BOLIVIA

Calle Ayacucho esquina Mercado - Telephone: (591-2) 2409090 - Fax: (591-2) 2661590 www.bcb.gob.bo - bancocentraldebolivia@bcb.gob.bo - La Paz — Bolivia

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CENTRAL BANK OF BOLIVIA PLURINATIONAL STATE OF BOLIVIA Requirements and conditions for the cash-out of Electronic Payment Instruments (EPIs) in merchants

A. General

The cash-out of Electronic Payment Instruments (EPIs) in merchants is a mechanism by which the holder of an EPI can withdraw cash from a national currency account associated with said instrument in a merchant affiliated with an EPI network at the time of making a purchase and paying at a Point of Sale Terminal (POS), and has the following conditions and requirements that must be met within the national territory:

1. The maximum amount permitted for EPI cash-out operations in merchants shall be Bs 300.00 (Three hundred Bolivianos 00/100) for each transaction carried out by the client.

2. EPI cash-out operations in merchants shall not generate any charge to the user or EPI holder; the commissions to be applied shall be agreed upon between the Financial Intermediation Entities issuing the EPI, affiliated accepting merchants, and Electronic Card Administrators.

3. EPI cash-out operations in merchants shall not generate tax or fiscal obligations for the client or the merchant, as they constitute a debit of the account associated with the EPI.

4. To carry out an EPI cash-out operation in merchants, the client must follow the same procedure as when making a payment for goods or services through a POS, that is, they must enter their personal identification number (PIN) to confirm the operation.

5. In the case where EPI cash-out operations in merchants are carried out via electronic cards, these may only be national debit cards issued by entities regulated by the Financial Entities Supervisory Authority (ASFI).

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CENTRAL BANK OF BOLIVIA PLURINATIONAL STATE OF BOLIVIA

B. Characteristics of Merchants

Merchants affiliated with electronic card networks that offer the EPI cash-out service in merchants must meet the following requirements and conditions within the national territory:

1. The EPI cash-out service in merchants may be provided by commercial establishments in the following sectors: a. Supermarkets. b. Chain stores or department stores. c. Pharmacy chains. d. Gas stations. e. Hotel or lodging services that are within the General Regime of the National Tax Service. f. Restaurants or cafeterias that are within the General Regime of the National Tax Service.

C. Service Provision Conditions

1. The EPI cash-out service in merchants shall be optional and offered to clients at the checkout counters of affiliated merchants, subject to cash availability.

2. Electronic card administrators must ensure that access to information and operations recorded through POS terminals are carried out in accordance with specific regulations issued by the Financial System Supervision Authority (ASFI).

3. Each checkout counter of affiliated merchants must clearly identify the service at that point of attention through some type of announcement or advertising.

4. Affiliated merchants must invoice only for the amount corresponding to the sale of goods and services, excluding the amount of cash delivered, as this operation is not part of the sale.

5. After the cash-out operation via POS is completed, the merchant, if the client so requests, shall issue a printed or electronic receipt where the amount corresponding to the payment for the sale of goods or services, the amount corresponding to the cash withdrawal operation, and the total amount debited from the account associated with the EPI are clearly distinguished.

As established in the Minimum Operational Security Requirements for Electronic Cards, Circular SGDB No. 003/2020 of the Central Bank of Bolivia dated January 2, 2020, a printed receipt will not be issued to the client unless they request it, in which case a handwritten signature will not be required.

6. Receipts issued by the merchant shall not expose confidential client information, such as the account number or card number.