CIEX No. 49/2020: Modification of Circular CIEX No. 26/2020 on Requirements and Conditions for Cash Withdrawals via POS Terminals

Calle Ayacucho esquina Mercado - Teléfono: (591-2) 2409090 - Fax: (591-2) 2661590 www.bcb.gob.bo - bancocentraldebolivia@bcb.gob.bo - La Paz – Bolivia EXTERNAL CIRCULAR La Paz, September 30, 2020 CIEX No. 49/2020 FROM: GENERAL MANAGEMENT FINANCIAL ENTITIES MANAGEMENT TO: FINANCIAL INTERMEDIATION ENTITIES, COMPANIES OF COMPLEMENTARY FINANCIAL SERVICES PROVIDING PAYMENT SERVICES, ELECTRONIC CARD ADMINISTRATORS, CLEARING AND SETTLEMENT CHAMBERS SUBJECT: MODIFICATION OF CIRCULAR CIEX No. 26/2020 ON REQUIREMENTS AND CONDITIONS FOR OPERATIONS OF CASHING OUT ELECTRONIC PAYMENT INSTRUMENTS IN MERCHANTS AFFILIATED THROUGH POINT OF SALE TERMINALS-POS

Gentlemen:

The Central Bank of Bolivia, within the framework of its powers as regulator of the national payments system and in accordance with what is established in the Regulation of Payment Services, Electronic Payment Instruments, Compensation and Settlement, approved by Supreme Decree No. 137/2019 of October 8, 2019, transmits for application and compliance the Requirements and Conditions for operations of Cashing Out Electronic Payment Instruments (EPI) in Merchants, thereby rendering ineffective External Circular CIEX No. 26/2020 dated 05.06.20.

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

Sincerely,

DIGITALLY SIGNED DOCUMENT
Joaquín Rolando López Bakovic Abel Fernando Sanjines Alvarez MANAGER OF FINANCIAL ENTITIES GENERAL MANAGER a.i. AFSA/JRLB/ropr/pmms/erai C.c. Archive

Calle Ayacucho esquina Mercado - Teléfono: (591-2) 2409090 - Fax: (591-2) 2661590 www.bcb.gob.bo - bancocentraldebolivia@bcb.gob.bo - La Paz – Bolivia Requirements and conditions for the cashing out of Electronic Payment Instruments (EPI) in merchants

A. General Provisions
The cashing out of Electronic Payment Instruments (EPI) in merchants is a mechanism by which the holder of an EPI can withdraw cash from an account in national currency associated with said instrument, or optionally charged to a credit card issued by a financial entity located abroad, at a merchant affiliated to 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 allowed for EPI cashing out operations in
   merchants will be Bs300.- (Three hundred bolivianos 00/100) per each transaction carried out by the client.

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

3. EPI cashing out operations in merchants will not generate
   tax and fiscal obligations for the client or the merchant since they constitute a debit of the account associated with the EPI.

4. To carry out an EPI cashing 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 cashing out operations in merchants are
   carried out using electronic cards, these may be national debit cards issued by entities regulated by the Financial System Supervision Authority (ASFI) and optionally credit cards issued within national or international territory.

Calle Ayacucho esquina Mercado - Teléfono: (591-2) 2409090 - Fax: (591-2) 2661590 www.bcb.gob.bo - bancocentraldebolivia@bcb.gob.bo - La Paz – Bolivia B. Characteristics of Merchants Merchants affiliated to electronic card networks that offer the EPI cashing out service in merchants must comply with the following requirements and conditions within the national territory:

1. The EPI cashing out service in merchants may be provided by
   commercial establishments in the corresponding sectors:
   a. Supermarkets. b. Store chains or department stores.
   c. Pharmacy chains.
   d. Gas stations (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 cashing out service in merchants will be optional and
   will be offered to clients at the checkout counters of affiliated merchants subject to cash availability.

2. Electronic card administrator companies must ensure
   that access to information and operations recorded through POS terminals are carried out in accordance with specific regulations issued by ASFI.

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

4. Affiliated merchants must invoice only for the amount
   corresponding to the sale of goods and services without including the amount of cash delivered, as this operation is not part of the sale.

5. After the POS cashing out operation is completed,
   the merchant, if so required by the client1 , will issue a printed or

1 As established in the Minimum Operational Security Requirements for Electronic Cards, Circular SGDB No. 003/2020 of the Central Bank of Bolivia dated 02.01.20, a printed receipt will not be issued for the client, unless requested by the client, in which case a handwritten signature will not be required.

Calle Ayacucho esquina Mercado - Teléfono: (591-2) 2409090 - Fax: (591-2) 2661590 www.bcb.gob.bo - bancocentraldebolivia@bcb.gob.bo - La Paz – Bolivia electronic receipt where it is clearly distinguished 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.

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