CIEX No. 63/2019: Requirements and Conditions for Cash Withdrawal from Electronic Payment Instruments at Affiliated Merchants via POS Terminals

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BCB-DGD-VUC
BANCO CENTRAL DE BOLIVIA
PLURINATIONAL STATE OF BOLIVIA
2019 OCT 23 AM 10: 19

EXTERNAL CIRCULAR

La Paz, October 21, 2019
CIEX No. 63/2019

FROM: GENERAL MANAGEMENT
FINANCIAL ENTITIES MANAGEMENT
TO: FINANCIAL INTERMEDIATION ENTITIES, COMPLEMENTARY FINANCIAL SERVICES COMPANIES PROVIDING PAYMENT SERVICES, ELECTRONIC CARD ADMINISTRATORS, CLEARING AND SETTLEMENT EXCHANGES SUBJECT: REQUIREMENTS AND CONDITIONS FOR CASHING OUT ELECTRONIC PAYMENT INSTRUMENTS AT AFFILIATED MERCHANTS THROUGH POINT OF SALE (POS) TERMINALS

Gentlemen:

The Central Bank of Bolivia, within the framework of its regulatory powers over the national payments system and in accordance with the Regulation on Payment Services, Electronic Payment Instruments, Clearing and Settlement, approved by Supreme Decree No. 137/2019 of October 8, 2019, transmits for application and compliance the Requirements and Conditions for the cashing out of Electronic Payment Instruments (EPI) at Merchants.

Electronic Card Administrators must make adjustments to their systems, configure the necessary software in POS terminals, and carry out other necessary activities to provide the service by March 31, 2020.

Sincerely,

[Signature]
JULIO HUMEREZ QUIROZ
MANAGER OF FINANCIAL ENTITIES a.i.
BANCO CENTRAL DE BOLIVIA

[Signature]
CARLOS A. COLODRO LÓPEZ
GENERAL MANAGER a.i.
BANCO CENTRAL DE BOLIVIA

CCL/JHQ/ropr/pmms/eral/jmkt
Adj. As cited
C.c. Archive

The BCB contributes to the economic and social development of the country Ayacucho Street corner Mercado - Telephone: (591-2) 2409090 - Fax: (591-2) 2661590 www.bcb.gob.bo - bancocentraldebolivia@bcb.gob.bo - La Paz - Bolivia

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[Logo: BANCO CENTRAL DE BOLIVIA]

BANCO CENTRAL DE BOLIVIA
PLURINATIONAL STATE OF BOLIVIA

Requirements and conditions for the cashing out of Electronic Payment Instruments (EPI) at merchants

A. General Provisions

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

1. The maximum amount permitted for EPI cashing out operations at merchants shall be Bs300.- (Three hundred Bolivianos 00/100) for each transaction carried out by the customer.
2. EPI cashing out operations at merchants shall not generate any charge to the customer; commissions shall be agreed upon between the Financial Intermediation Entities issuing the EPI and the Electronic Card Administrating Companies.
3. EPI cashing out operations at merchants shall not generate tax or fiscal obligations for the customer or the merchant, as they constitute a debit of the account associated with the EPI.
4. To carry out an EPI cashing out operation at a merchant, the customer 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.

B. Characteristics of Merchants

Merchants affiliated to electronic card networks that offer the EPI cashing out service at merchants must meet the following requirements and conditions within the national territory:

1. The EPI cashing out service at merchants may be provided by commercial establishments in the following sectors:
   a. Supermarkets. b. Chain stores or department stores.
   c. Pharmacy chains.

The BCB contributes to the economic and social development of the country Ayacucho Street corner Mercado - Telephone: (591-2) 2409090 - Fax: (591-2) 2661590 www.bcb.gob.bo - bancocentraldebolivia@bcb.gob.bo - La Paz - Bolivia

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[Logo: BANCO CENTRAL DE BOLIVIA]

BANCO CENTRAL DE BOLIVIA
PLURINATIONAL STATE OF BOLIVIA

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 cashing out service at merchants is optional and will be offered to customers at the checkout counters of affiliated merchants, subject to cash availability.
2. Electronic card administering companies 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 POS cashing out operation is completed, the merchant, if requested by the customer¹, will 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.
6. Receipts issued by the merchant must not expose confidential customer information, such as the account number or the card number.

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¹ In accordance with the Minimum Operational Security Requirements for Electronic Cards, Circular SGDB No. 046/2017 of the Central Bank of Bolivia, a printed receipt will not be issued to the customer unless they request it, in which case a handwritten signature will not be required.

The BCB contributes to the economic and social development of the country Ayacucho Street corner Mercado - Telephone: (591-2) 2409090 - Fax: (591-2) 2661590 www.bcb.gob.bo - bancocentraldebolivia@bcb.gob.bo - La Paz - Bolivia