Circular 12/2018 — Operations of Electronic Payment Fund Institutions — BANXICO — MX

Monday, September 10, 2018 OFFICIAL GAZETTE (First Section) BANK OF MEXICO CIRCULAR 12/2018 addressed to Electronic Payment Fund Institutions, regarding the general provisions applicable to the operations of Electronic Payment Fund Institutions.

A logo appears at the margin, stating: Bank of Mexico.

CIRCULAR 12/2018
TO ELECTRONIC PAYMENT FUND INSTITUTIONS:
SUBJECT: GENERAL PROVISIONS APPLICABLE TO THE OPERATIONS OF ELECTRONIC PAYMENT FUND INSTITUTIONS.

The Bank of Mexico, in relation to the general provisions it must issue pursuant to the Law to Regulate Financial Technology Institutions, has taken into account the new technologies and business models developed in recent decades, which have expanded options in the provision of payment services to consumers. In particular, the emergence in other jurisdictions of new companies providing electronic payment services, through the issuance and administration of electronic payment funds, has gained greater importance due to the added value they can bring to consumers.

In line with the above, with the purpose of continuing to promote the proper functioning of payment systems and the healthy development of the financial system, as well as the protection of the public's interests, it is convenient to establish a regulatory framework that, on the one hand, allows for the development of innovation in the country's payment services, so that the benefits of efficiency that electronic payment fund institutions can bring to the provision of payment services are utilized, and at the same time, establishes adequate conditions to mitigate the risks associated with such services. The foregoing is achieved through the establishment of requirements that electronic payment fund institutions must observe in the various aspects of their operation related to the issuance and administration of such types of funds. In this regard, it is convenient to consider the opening of accounts, the receipt of resources for the issuance of electronic payment funds, and the manner in which such issuance must be carried out, as well as their transmission and redemption. Likewise, the specified requirements must also refer to the carrying out of those additional activities that the Law to Regulate Financial Technology Institutions allows electronic payment fund institutions to perform. In particular, it is appropriate to consider the granting of non-monetary benefits, the establishment of a limit on overdrafts that electronic payment fund institutions may grant, the transfer of electronic payment funds referred to foreign currency, as well as the obligation to interconnect to the country's payment systems applicable to those institutions that have high operational capacity, a significant amount of issued electronic payment funds, or a high number of clients.

With the aforementioned aspects, the Bank of Mexico seeks to continue promoting the protection of users' interests by establishing adequate conditions for the development of a competitive environment in the payment services market, as well as the proper functioning of payment systems, the healthy development of the financial system, and the promotion of electronic payment fund institutions.

For the foregoing, based on articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States, 24 and 26, of the Bank of Mexico Law, 26, 27, 29, 44, and 57 of the Law to Regulate Financial Technology Institutions, 4, first paragraph, 8, paragraphs fourth and seventh, 10, first paragraph, 12, first paragraph in relation to 20, fraction XI, and 14 Bis, first paragraph in relation to 17, fraction I, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Directorate of Operations and Payment Systems and the General Legal Directorate, respectively, as well as Second, fractions VI and X, of the Agreement on the Assignment of Administrative Units of the Bank of Mexico, after hearing the opinion of the Inter-institutional Committee referred to in the Law to Regulate Financial Technology Institutions, with respect to the resource limits that electronic payment fund institutions may maintain in the name of their clients or that a client may dispose of through said institutions, has resolved to issue the:

GENERAL PROVISIONS APPLICABLE TO THE OPERATIONS OF ELECTRONIC PAYMENT FUND INSTITUTIONS

CHAPTER I
PRELIMINARY PROVISIONS

a Object.- These Provisions have the following object:

(First Section) OFFICIAL GAZETTE Monday, September 10, 2018 a) To establish the characteristics of the operations carried out by electronic payment fund institutions referred to in the Law to Regulate Financial Technology Institutions; b) To establish the terms and conditions regarding the issuance of electronic payment funds referred to foreign currency and, in general, the carrying out of operations with foreign currency, as well as the provision of the money transmission service referred to in said Law, in foreign currency; c) To determine the limit on the amount of overdraft credits or loans that electronic payment fund institutions grant pursuant to the Law; d) To establish the terms and conditions for the offering of non-monetary benefits by electronic payment fund institutions; e) To establish the limits on the resources that electronic payment fund institutions may maintain in the name of their Clients or that a Client may dispose of through them, and f) To determine the information related to the activities and Operations of electronic payment fund institutions that they must report to the Bank of Mexico, as well as the corresponding periodicity.

a Definitions.- For the purposes of these Provisions, in addition to the terms used in the Law to Regulate Financial Technology Institutions under the definitions included in said legislation, the following shall be understood:

Digital Certificate: a data message in digital format generated pursuant to the "Rules to Operate as a Registrar Agency and/or Certification Agency in the Extended Security Infrastructure", contained in Circular-Telefax 6/2005 of the Bank of Mexico, or those that, in their case, replace them.

CLABE: the unique identifier called "Basic Standardized Key", which must be assigned to each of the Electronic Payment Fund Accounts with the characteristics established in Annex 4 of these Provisions.

Client: the person in whose name the electronic payment fund institution maintains an Electronic Payment Fund Account.

Beneficiary Client: the holder of the Electronic Payment Fund Account indicated in the Fund Transfer or Electronic Payment Fund Transfer order to which the electronic payment fund institution receiving said order must credit the Electronic Payment Funds equivalent to the amount indicated in the order in question.

Issuing Client: the Client with whom the electronic payment fund institution has agreed to carry out a Fund Transfer or Electronic Payment Fund Transfer, charged to the Electronic Payment Fund Account maintained by said institution for the Client.

Electronic Payment Fund Account:
a) that which the electronic payment fund institution, in accordance with article 22, fraction I, of the Law, opens in the name of its Client, in which, among others, it records (a) credits corresponding to (i) the amount of electronic payment funds that it issues in favor of this, against the receipt of an amount of money, in national currency or, subject to the authorization of the Bank of Mexico, in Foreign Currency, or (ii) the amount of electronic payment funds subject to the Electronic Payment Fund Transfers in question, as well as (b) the charges corresponding to: (i) the disposition of said funds, or (ii) the amount of electronic payment funds subject to the Electronic Payment Fund Transfers.

Banking Business Day: the days on which credit institutions are not obliged to close their doors or suspend Operations, pursuant to the general provisions issued for such effect by the CNBV.

Dollars: the legal tender in the United States of America.

Direct Debit: the execution of Fund Transfers or Electronic Payment Fund Transfers, whether individual or recurring, charged to an Electronic Payment Fund Account, carried out by the electronic payment fund institution that administers it, in accordance with the express acceptance presented by the holder of said account directly or through a Third Party Authorized by the Client.

Institution of the Client with Direct Debit:
the electronic payment fund institution that maintains the Electronic Payment Fund Account with respect to which Direct Debits are carried out.

Foreign Electronic Payment Fund Institutions:
legal entities located outside national territory that provide services of issuance, administration, redemption, and transmission of electronic payment funds similar to those provided by electronic payment fund institutions in Mexico, pursuant to applicable legislation.

Institution of the Authorized Third Party:
the electronic payment fund institution or Financial Entity that is part of an agreement celebrated by the Institution of the Client with Direct Debit, pursuant to which, at the request of the Authorized Third Party, it instructs said Institution of the Client with Direct Debit to charge the Electronic Payment Fund Account corresponding to the Direct Debits accepted by the Client.

Law: the Law to Regulate Financial Technology Institutions.

Foreign Currency: Dollars, as well as any other freely transferable and convertible currency.

Card: the means of disposing of the electronic payment funds registered in the Electronic Payment Fund Account in question, constituted as the set of data that, when processed through determined systems, allow initiating a charge instruction to said Electronic Payment Fund Account, distinct from any other instruction carried out to execute a Fund Transfer or an Electronic Payment Fund Transfer.

Authorized Third Party: with respect to a Direct Debit, the person to whom the holder of the Electronic Payment Fund Account has granted authorization to instruct charges in said account, for the purposes of the Direct Debit.

Fund Transfer: that operation carried out between the electronic payment fund institution in question and another electronic payment fund institution, Financial Entity, foreign financial entity, or Foreign Electronic Payment Fund Institution, pursuant to which the first carries out (i) the credit in an Electronic Payment Fund Account for the equivalent amount of money indicated in the respective order received, derived from the charge that said other electronic payment fund institution or entity makes in the corresponding account, or (ii) the charge in an Electronic Payment Fund Account equivalent to that amount of money that the Client has indicated in the order issued so that, once the redemption of the referred funds is carried out, said amount is credited in favor of the other electronic payment fund institution or entity referred to whom said order is sent for credit in the deposit account indicated in said order.

Electronic Payment Fund Transfer:
a) that operation carried out by the same electronic payment fund institution in accordance with the contracts celebrated with its Clients for the opening of Electronic Payment Fund Accounts, pursuant to which said institution credits a determined amount of electronic payment funds in one of said Accounts, derived from the charge for the referred amount in any other of those accounts.

UDIS: the accounting units, whose value in national currency is published by the Bank of Mexico in the Official Gazette of the Federation, pursuant to articles Third of the "Decree by which obligations that may be denominated in investment units are established and various provisions of the Federal Tax Code and the Income Tax Law are reformed and added" and 20-Ter of the Federal Tax Code.

(First Section) OFFICIAL GAZETTE Monday, September 10, 2018

a Characteristics of Operations.- Electronic payment fund institutions may only carry out the Operations permitted in the Law and are prohibited from carrying them out in terms different from those established in these Provisions.

The electronic payment fund institution that intends to carry out any Operation with characteristics different from those indicated in these Provisions must inform the Bank of Mexico thereof, in accordance with 37. a of these Provisions, so that it resolves what, if any, is appropriate in this regard, without prejudice to the faculty that article 47, last paragraph, of the Law confers on the Secretariat to authorize electronic payment fund institutions to carry out analogous, connected, or complementary operations to those other Operations that said institutions may carry out. In the communication that the electronic payment fund institution presents to the Bank of Mexico, it must specify the characteristics under which it intends to carry out the Operation in question, as well as the reasons for doing so.

Electronic payment fund institutions may only issue electronic payment funds referred to those particular virtual assets that, if any, the Bank of Mexico determines when it deems appropriate, in accordance with the general provisions it issues based on article 26, second paragraph, of the Law. Regarding this, for electronic payment fund institutions to carry out those Operations that are appropriate with the referred virtual assets, including the issuance of electronic payment funds referred to said virtual assets, they must have the prior authorization of the Bank of Mexico and observe, in addition to the provisions of the Law and this legislation that are applicable, those requirements established in the general provisions that the Bank of Mexico issues, in due course, based on article 26 of the Law.

Without prejudice to what is provided in the previous paragraph, electronic payment fund institutions must request authorization from the Bank of Mexico to use those technologies associated with any of the virtual assets indicated in the previous paragraph or of any other different type, for the execution of the processes that require carrying out in the realization of Fund Transfer Operations in national currency or Foreign Currency.

a Operations in Foreign Currency.- The electronic payment fund institution interested in celebrating Operations in Foreign Currency must obtain prior authorization from the Bank of Mexico, for which it must present the corresponding application in accordance with 37. a of these Provisions. The referred application must contain the following elements:
I. A description of the Operations that the electronic payment fund institution intends to carry out;
II. The business scheme;
III. Identification of the target population;
IV. If applicable, the exchange rate at which the Operations it intends to carry out will be agreed upon in accordance with what is provided in 15. a of these Provisions;
V. The commissions it intends to charge for the celebration of the operations, and
VI. A description of the mechanisms it will use to verify compliance with these Provisions regarding the celebration of operations with Foreign Currency.
a Clients.- Electronic payment fund institutions may open Electronic Payment Fund Accounts referred to national currency, in the name of natural and legal persons, national or foreign. Likewise, subject to the prior authorization of the Bank of Mexico, the aforementioned institutions may open Electronic Payment Fund Accounts referred to Foreign Currency, only in the name of natural persons and national legal persons or foreign natural persons residing in Mexico and who accredit their migratory status through the corresponding document.

Regarding Electronic Payment Fund Accounts referred to Foreign Currency, electronic payment fund institutions may only open them in the name of national legal persons, when the latter maintain a deposit account in any Financial Entity, Foreign Electronic Payment Fund Institution, or foreign financial entity.

a Electronic Payment Fund Accounts.- The electronic payment fund institution must celebrate with its Client a contract for the issuance and commercial deposit of electronic payment funds for each Electronic Payment Fund Account it opens in the name of the Client. The terms and conditions that electronic payment fund institutions stipulate in the contracts they celebrate with their Clients for the opening of Electronic Payment Fund Accounts that they issue in the name of these must be consistent with those provided in the Law and these Provisions.

The electronic payment fund institution that opens an Electronic Payment Fund Account must register in it, in accordance with 10. a of these Provisions, the credits corresponding to the issuance of electronic payment funds that it carries out in favor of the respective Client, as well as the charges for the disposition of said funds as provided in these Provisions.

a Benefits Granted to Clients.- Electronic payment fund institutions may grant non-monetary benefits to their Clients pursuant to what is agreed to this effect between both parties. Electronic payment fund institutions must determine and establish in the contracts they celebrate with their Clients the parity that the referred non-monetary benefits will have with respect to amounts of money. Electronic payment fund institutions may only modify the referred parity retroactively in favor of their Clients. Electronic payment fund institutions must allow their Clients to transform non-monetary benefits into amounts of electronic payment funds.

Electronic payment fund institutions that offer their Clients monetary benefits in cases other than those indicated in article 29, first paragraph of the Law, may only grant them as electronic payment funds, which must be backed in accordance with article 23 of the Law.

Electronic payment fund institutions must always maintain sufficient resources or assets to meet their obligations for the granting of non-monetary benefits they offer to their Clients.

In any case, electronic payment fund institutions must abstain from granting monetary or non-monetary benefits that may generate the same economic effects as the payment of interest or yield, particularly those calculated based on the balances of electronic payment funds maintained in the respective accounts or on the amounts operated with them.

a Closure of Electronic Payment Fund Accounts.- The electronic payment fund institution must clearly stipulate, in the contract it celebrates with its Client, the right in favor of the Client, during the validity of said contract, to close, at any time and without any condition, their Electronic Payment Fund Account, as well as to redeem the balance of the respective funds to the equivalent amount of money that corresponds. In this regard, the electronic payment fund institution may not condition the closure of the Electronic Payment Fund Account instructed by its Client to the Client informing or justifying the reasons for said closure.

Likewise, electronic payment fund institutions that receive any of the referred closure requests must provide the Client with digital means, at least a reference number of said request, the date and time it was received. Electronic payment fund institutions must deliver the information referred to at the moment the Clients have presented the corresponding request, or at the latest by the close of the Banking Business Day in which they have presented the request in any of the forms agreed to this effect. Electronic payment fund institutions must preserve evidence of the information they have provided to their Clients in terms of this Provision.

The closure referred to in this Provision takes effect at the close of the Banking Business Day on which the electronic payment fund institution receives the corresponding request from its Client. Once the referred closure takes effect, the electronic payment fund institution must abstain from carrying out charges in the Electronic Payment Fund Account in question and must make available to the Client the entire balance maintained in the cited Electronic Payment Fund Account, at the latest by the close of the Banking Business Day of the presentation of the respective request, through the Fund Transfer to the deposit account for sight money in any Financial Entity authorized to maintain it that the Client has specified for those effects.

(First Section) OFFICIAL GAZETTE Monday, September 10, 2018

In the event of disputes regarding the closing date of the Electronic Payment Fund Account, it shall be the one established by the Client, unless in said dispute there is written evidence by which the electronic payment fund institution can justify a different date. In the event of disputes regarding the Client's instruction regarding the closure of their Electronic Payment Fund Account, the Client must produce the evidence of the request referred to in the second paragraph.

CHAPTER II
OPERATIONS
Section I
Operations in National Currency

9th. Levels of Electronic Payment Fund Accounts in national currency.- Electronic payment fund institutions shall classify each of the Electronic Payment Fund Accounts into one of the three levels indicated in this Provision, depending on the criteria and requirements for account opening, in accordance with what is provided in the general provisions referred to in Article 58 of the Law.

Such accounts shall comply with the following:

I. In Electronic Payment Fund Accounts classified as level 1 that an electronic payment fund institution holds for the same Client, the sum of the deposits in all such accounts, during the course of a calendar month, shall not exceed the equivalent in national currency to seven hundred fifty UDIS. At no time shall the sum of the balances in such accounts exceed the equivalent in national currency to one thousand UDIS.

II. In Electronic Payment Fund Accounts classified as level 2 that an electronic payment fund institution holds for the same Client, the sum of the deposits in all such accounts, during the course of a calendar month, shall not exceed the equivalent in national currency to three thousand UDIS.

III. In Electronic Payment Fund Accounts classified as level 3 that an electronic payment fund institution holds for the same Client, the sum of the deposits to all such accounts shall have no limit, unless, in their case, the institution in question agrees on one with its Client.

To perform the calculation in UDIS of the limits indicated in this Provision, electronic payment fund institutions must take the value of this accounting unit from the last day of the calendar month immediately preceding the month in question.

Likewise, to determine the maximum amount of deposits in level 1 and 2 accounts during the course of a calendar month, as well as to determine the maximum balance in level 1 accounts, electronic payment fund institutions may exclude amounts related to refunds for Electronic Payment Fund Transfers and any other bonus that such institutions make for the use or management of the account that, if applicable, are made during the period in question.

10th. Issuance of electronic payment funds and crediting of resources.- The electronic payment fund institution that administers an Electronic Payment Fund Account referred to national currency must issue the respective electronic payment funds in favor of its Clients, as well as make the corresponding credits in said Electronic Payment Fund Account, so that the Client can dispose of them, within the three seconds immediately following the moment it receives the respective resources, in accordance with what is provided in Article 29 of the Law, for which the electronic payment fund institution must have the express consent of the Client to carry out the aforementioned issuance, which may be granted in the respective contract or at some later time.

As an exception to what is provided in the previous paragraph, the electronic payment fund institution may carry out the issuance of the respective electronic payment funds on a date prior to that referred to in said paragraph when:

a) It receives resources as a result of acquiring or payment aggregation services with disposition means, provided through a card operations network, in which case the electronic payment fund institution will issue the aforementioned electronic payment funds at the moment it receives the payment authorization processed by the issuer, and

Monday, September 10, 2018 OFFICIAL GAZETTE (First Section)

b) It receives resources as a consequence of carrying out Operations with Foreign Electronic Payment Fund Institutions, in which case the electronic payment fund institution will issue the electronic payment funds at the moment the electronic payment fund institution credits the equivalent resources that back such issuance.

For the purposes of what is provided in this Provision, the electronic payment fund institution must allow the Client to deliver the resources for the issuance of electronic payment funds, through Fund Transfers.

Likewise, the respective electronic payment fund institution may allow the Client to deliver the resources referred to in this Provision for the issuance of electronic payment funds, through payments with Cards or those other debit, credit, or reloadable cards issued by Financial Entities or checks.

Only in those cases where the respective electronic payment fund institution has the prior authorization of the CNBV in accordance with Article 45 of the Law, may national currency cash deposits be made to Electronic Payment Fund Accounts referred to said currency.

Electronic payment fund institutions that, in addition to the Operations provided in the Law, provide other services from which they receive resources for credit to the Electronic Payment Fund Accounts of their Clients derived from Fund Transfers from third parties or card operations, may only use such resources for the issuance of electronic payment funds when said Beneficiary Client expressly requests it in the respective contract or at some later time. In the event that the electronic payment fund institution does not receive said request, it must make available to the respective Client the amount of money subject to said Fund Transfer or card operation, in national currency or, in the cases referred to in fractions I, subsection b) and III of the 15th of these Provisions regarding natural persons, in Foreign Currency. In those cases where the aforementioned credits refer to Foreign Currency, such credits must correspond to their equivalent in national currency or, when the Client has an account denominated in said Foreign Currency in some multiple banking institution, they may be deposited in that account.

11th. Debit of resources.- The electronic payment fund institution that administers an Electronic Payment Fund Account referred to national currency must allow the Client holding said account to dispose of the funds, as well as make the corresponding debits in the referred account, through:

I. The debit of electronic payment funds for the amount indicated by the Client, in order for the equivalent money amounts to be remitted, through Fund Transfers, to deposit accounts opened in the name of the Client or third parties in Financial Entities that the Client itself specifies for this purpose, or that said amounts be delivered in cash, in national currency, for the equivalent of such funds, provided that the institution in question has been authorized by the CNBV to carry out this type of delivery in accordance with what is provided for this purpose in Article 45 of the Law;

II. Electronic Payment Fund Transfers to other Electronic Payment Fund Accounts referred to the same currency;

III. Payments of any type, through the use of the disposition means that the electronic payment fund institution has allowed its Client to use, and

IV. Direct debits.

Additionally, electronic payment fund institutions may make debits in Electronic Payment Fund Accounts referred to by Operations not instructed by the Client related to refunds, objections, and unauthorized charges in those cases procedent in accordance with the applicable provisions and stipulations. In the event that such debits exceed the balances of the Electronic Payment Fund Accounts in question, they will be considered overdrafts that will not be subject to the limit referred to in the 16th, second paragraph, of these Provisions.

Section II
Operations in Foreign Currency

12th. Issuance of Electronic Payment Funds in Foreign Currency.- Electronic payment fund institutions interested in carrying out the Operations referred to in the 4th of these Provisions, prior to the presentation of the authorization request referred to in said Provision, must have an account in said Foreign Currency in a multiple banking institution.

For the above purposes, electronic payment fund institutions must have schemes that allow them to carry a clear separation of the electronic payment funds they issue referred to Foreign Currency, with respect to those electronic payment funds they issue referred to national currency. The issuance of electronic payment funds referred to Foreign Currency by electronic payment fund institutions will be subject to the limits described in the 13th of these Provisions, as well as to what is provided in the 10th of these Provisions regarding the moment when the electronic payment fund institution will be obligated to issue the respective electronic payment funds.

13th. Limits of Electronic Payment Fund Accounts referred to Foreign Currency.- Electronic payment fund institutions will open and administer Electronic Payment Fund Accounts referred to Foreign Currency with the following characteristics:

I. Regarding Electronic Payment Fund Accounts opened in the name of natural persons, the sum of: i) the deposits during the course of a calendar month that said Client or third parties make to one or more Electronic Payment Fund Accounts that the electronic payment fund institution holds for them, and ii) the deposits equivalent to the amount of electronic payment funds coming from a Foreign Electronic Payment Fund Institution with which the electronic payment fund institution does business, shall not exceed ten thousand Dollars or its equivalent in the case of another Foreign Currency.

II. Regarding Electronic Payment Fund Accounts opened in the name of natural persons, the sum of: i) the balances that said Client maintains in one or more Electronic Payment Fund Accounts that the electronic payment fund institution holds for them, and ii) the balances equivalent to the amount of electronic payment funds coming from a Foreign Electronic Payment Fund Institution with which the electronic payment fund institution does business, shall not exceed ten thousand Dollars or its equivalent in the case of another Foreign Currency.

III. Regarding Electronic Payment Fund Accounts opened in the name of national legal entities, the sum of the deposits shall have no limit, unless agreed with the Client.

14th. Crediting of resources in Foreign Currency.- Electronic payment fund institutions that administer Electronic Payment Fund Accounts referred to Foreign Currency must allow their Clients to make credits in said Electronic Payment Fund Accounts, in the Foreign Currency to which the electronic payment funds will be referred, through the Operations provided in the 10th of these Provisions, subject to the authorization of the Bank of Mexico, without prejudice to the cases and limits that, for this purpose, the CNBV establishes through the general provisions it issues based on Article 45 of the Law.

15th. Debit of resources in Foreign Currency.- Electronic payment fund institutions that administer Electronic Payment Fund Accounts referred to Foreign Currency must allow their Clients to make debits in the Electronic Payment Fund Accounts they hold for their Clients through:

I. The redemption of the electronic payment funds for the amount indicated by the Client, in order for the equivalent money amounts in Foreign Currency to be remitted:

a) In the event that the Client is a national legal entity, through Fund Transfers, to accounts opened in the name of said Client or third parties in Financial Entities, foreign financial entities, or Foreign Electronic Payment Fund Institutions that the Client itself specifies, or

b) In the event that the Client is a natural person, through delivery in cash, in Foreign Currency for the equivalent of such funds, provided that such delivery has been previously authorized by the CNBV in accordance with Article 45 of the Law and is carried out outside the national territory, or through Fund Transfers to foreign financial entities or Foreign Electronic Payment Fund Institutions;

II. Electronic Payment Fund Transfers, and

Monday, September 10, 2018 OFFICIAL GAZETTE (First Section)

III. Payments of any type, through the use of a Card. In the event that the Client is a natural person, this type of payment may only be made to beneficiaries located outside the national territory.

The sum of the debits referred to in fractions I, subsection b), and III, of this Provision, that natural persons may carry out during the course of a calendar month shall not exceed ten thousand Dollars or its equivalent in the Foreign Currency in question, other than the Dollar, without prejudice to the cases and limits that, for this purpose, the CNBV establishes through the general provisions it issues based on Article 45 of the Law. As an exception to what is provided in this paragraph, the aforementioned Clients may redeem the entire balance of their respective Electronic Payment Fund Accounts referred to Foreign Currency, as a consequence of the closure of said accounts, through Fund Transfers to deposit accounts in Financial Entities, for the equivalent amount in national currency.

The exchange rate that electronic payment fund institutions must use to calculate the amount in national currency of electronic payment fund debits referred to Foreign Currency, shall be the one resulting in accordance with the following:

A) Regarding amounts denominated in Dollars, the amount in national currency that electronic payment fund institutions may charge in the Electronic Payment Fund Account of the Client in question shall not exceed the product of the multiplication of the following factors: a) the amount of the payment or disposition in said Foreign Currency, and b) the result of multiplying by 1.005 the applicable exchange rate. For the purposes of the case indicated in this fraction, the applicable exchange rate shall be the one determined by the Bank of Mexico, in accordance with Title Three, Chapter V, of the Provisions applicable to the operations of credit institutions and the National Financial Development Agency for Agriculture, Rural, Forestry and Fishing, contained in Circular 3/2012, which it makes known on the same day it determines it, through its internet page, as the "FIX exchange rate" which, in turn, is published in the Official Gazette of the Federation on the next Banking Business Day, and which corresponds to the last available on said internet page at the moment the electronic payment fund institution has authorized the respective payment or disposition.

B) Regarding amounts denominated in some Foreign Currency other than the Dollar, the charge that the electronic payment fund institution makes in national currency in the respective Electronic Payment Fund Account shall not exceed the amount resulting from the following calculation: first, the equivalent of the charge amount in the respective Foreign Currency to Dollars shall be calculated according to the last exchange rate available at the time that corresponds in accordance with the provisions in subsection A) above, which has been made known by some price provider authorized to organize and operate with such character by the CNBV in accordance with what is provided for this purpose by the Securities Market Law, as it has been published on the respective internet page of said provider, and second, the equivalent amount in pesos of said amount in Dollars shall be calculated, in accordance with what is indicated in subsection A) above.

In the event that the price provider contracted by the electronic payment fund institution in question does not make known the applicable exchange rate to the Foreign Currency in which a charge is made, said electronic payment fund institution may use the market exchange rate made known by any company that does not have the character of a related party, in terms of Article 73, fractions I, V and VII, of the Credit Institutions Law. In this case, the electronic payment fund institution must keep a record of the source from which it obtained the exchange rate referred to in this subsection.

Institutions may request from the Bank of Mexico, through the Management of Authorizations, Consultations and Legal Control, at Avenida 5 de mayo 2, colonia centro, postal code 06000, Mexico City, their authorization to carry out the exchange operation referred to in this Provision through the application of: a) the corresponding exchange rate at a time different from that provided in subsection A) above, or b) an exchange rate of the Foreign Currency in question, other than the Dollar, that is not made known by some price provider provided for in this article.

The electronic payment fund institution that presents the request referred to in the previous paragraph must attach to it sufficient evidence regarding the operational reasons that justify said request, as well as the elements that support its convenience for the Clients. Likewise, the electronic payment fund institution that obtains the indicated authorization must make known to its Clients, in accordance with the procedure referred to in said authorization, the application of the corresponding exchange rate, as well as

(First Section) OFFICIAL GAZETTE Monday, September 10, 2018 to carry out the modifications to the contracts under which the corresponding Electronic Payment Funds are issued. For these purposes, the electronic payment fund institution must include in its authorization request its proposal for the aforementioned procedure.

Section III
Characteristics of Operations

16th. Overdrafts.- Clients of electronic payment fund institutions may incur overdrafts on their Electronic Payment Fund Accounts derived from the charges referred to in fraction II of the 11th and fraction II of the 15th of these Provisions.

Electronic payment fund institutions may allow overdrafts on the Electronic Payment Fund Account provided that it does not exceed the equivalent of fifteen UDIS. To this effect, the provisions of fraction III of article 27 of the Law shall be observed.

17th. Electronic Payment Fund Transfer Orders.- Electronic payment fund institutions may execute instructions for Electronic Payment Fund Transfers that Clients transmit to them through electronic means agreed upon by both parties, indicating the necessary information of the Sending Client and the Beneficiary Client to carry out the Electronic Payment Fund Transfer.

For the foregoing purposes, electronic payment fund institutions must charge and credit, in accordance with the 10th of these Provisions, the electronic payment funds of the aforementioned Electronic Payment Fund Transfers that they accept from their Clients, and must notify about the accepted credit orders through the means agreed upon with the Client, both to the Sending Client and to the Beneficiary Client of said Operation. Such notification must be delivered at the moment of execution of the order.

Likewise, electronic payment fund institutions may establish a reinforced authentication scheme with at least two independent elements whose characteristics will be defined in the general provisions issued jointly by the Bank of Mexico and the CNBV, in accordance with what is provided in article 56 of the Law.

18th. Unrecognized Charges.- When the electronic payment fund institution receives a notice of complaint regarding charges not recognized by its Client, said institution must credit, no later than the second Banking Business Day following the one in which it received the respective notice, the amount equivalent to the unrecognized charge, provided that the institution received the notice during a period of ninety days subsequent to the date on which the charge subject of the complaint was made.

The electronic payment fund institution will not be obligated to make the credit referred to in this Provision when said institution proves to the Client that, in the Operation that caused the unrecognized charge by the latter, two of the independent elements referred to in the applicable provisions to authenticate operations as authorized by the Client were used at the time of carrying out the Operation, or that only one of said elements was used at the time of carrying out the Operation and another of said elements at the time of delivering the good or service acquired by virtue of said Operation.

Electronic payment fund institutions may in no case require the Client to carry out additional procedures other than the presentation of the notice referred to in this Provision to make the respective credits.

19th. Fund Transfer Orders.- The provisions of this Provision will be applicable to those electronic payment fund institutions that:

I. During a period of twelve consecutive calendar months:
i) carry out more than 1.2 million Fund Transfers or Electronic Payment Fund Transfers, or ii) send or receive Fund Transfers or Electronic Payment Fund Transfers for a total amount exceeding 3.6 billion UDIS, or

II. At any time:
i) have had more than 100 thousand Electronic Payment Fund Accounts that, during a period of twelve consecutive calendar months, have had a positive balance at any time or have sent at least one Fund Transfer in said period, or

Monday, September 10, 2018 OFFICIAL GAZETTE (First Section) ii) have had a total balance in the Electronic Payment Fund Accounts held for their Clients exceeding 300 million UDIS.

The electronic payment fund institutions referred to in the first paragraph of this Provision will be obligated to comply with the following requirements:

A. They must receive and process Fund Transfers in national currency that their Clients or any participant in a national currency payment system, whose internal rules are authorized by the Bank of Mexico or administered by the Bank of Mexico, direct to them through said payment system in which said electronic payment fund institution participates.

B. They must receive and process the aforementioned Fund Transfers in national currency that their Clients or other electronic payment fund institutions direct to them through any interbank payment system, whose internal rules are authorized by the Bank of Mexico or administered by the Bank of Mexico in which said electronic payment fund institution participates directly or through a third party.

C. They must accept such Fund Transfer Orders that meet the requirements established for such purposes by the payment system referred to in the previous paragraph and must credit, in accordance with the 10th of these Provisions, the respective resources in the Electronic Payment Fund Accounts of the Beneficiary Client in question.

D. They must inform the Bank of Mexico if they fall into any of the scenarios provided for in the first paragraph of this Provision, during the immediate next calendar month following the conclusion of the period indicated in said paragraph.

E. They must present, within a deadline of nine calendar months following the one in which they update the scenario contemplated in the first paragraph of this Provision, their request to participate in one of the payment systems referred to in said paragraph, as well as obtain authorization to act as participants in said system within a deadline of three calendar months following the one in which said nine-month period concludes.

F. They must execute Fund Transfer Orders that their Clients instruct against their respective Electronic Payment Fund Accounts through an electronic channel, in national currency. For such execution, electronic payment fund institutions may allow said Clients to transmit the respective instructions through the equipment, means, systems, and telecommunications networks that said institutions have agreed upon in the contract.

For the purposes of what is indicated in subsections A to F above, the aforementioned electronic payment fund institutions must notify about the accepted Fund Transfer Orders through the means established in the contract, both to the Sending Client and to the Beneficiary Client, as applicable. Such notification must be delivered at the moment the execution of the Fund Transfer Order concludes.

In the Operations referred to in this Provision, electronic payment fund institutions must carry them out under the following terms and conditions:

a) Electronic payment fund institutions must identify the Electronic Payment Fund Accounts of their Beneficiary Clients for the credit of a Fund Transfer with:
i) The CLABE assigned to the Electronic Payment Fund Account, or ii) The last ten digits of the mobile phone line number that, if applicable, is associated with the Electronic Payment Fund Account.

b) The electronic payment fund institution must associate the Electronic Payment Fund Accounts with the last ten digits of the number of a mobile phone line indicated by its Client.

For the purposes of what is provided in subsection b), electronic payment fund institutions must:

i) Associate the phone number only to the Electronic Payment Fund Account that the Client indicates to credit to that single account the Fund Transfer Orders referenced to said number. Likewise, only for the purposes of receiving Fund Transfers, the electronic payment fund institution may only associate a phone number to a single one of the Electronic Payment Fund Accounts maintained by said Client. However, it may offer its Clients the option to send to the same phone number: notifications, balances, movements, or alerts from other Electronic Payment Fund Accounts of the same Client.

ii) Attend to requests for association, disassociation, and change of number within a maximum deadline of one Banking Business Day following the Client's request.
The requests referred to in this subsection may be received through third parties, ensuring that they gather the same information required of them (account number to associate and phone number to associate). Association and disassociation may only be carried out with the express authorization of the client.

iii) Refrain from attending to requests to associate a phone number already associated with a Client different from the one requesting it, without the first Client having previously requested disassociation.

iv) Receive requests, if they so decide, presented verbally or as data messages. Reception hours must be at least during public service hours.
Requests made through electronic channels must comply with the applicable general provisions for the contracting of Operations carried out by electronic, optical, or any other technology means, as well as the procedures authorized for the identification and authentication of Clients, issued jointly by the Bank of Mexico and the CNBV in accordance with article 56, second paragraph, of the Law.

v) Refrain from requesting requirements that inhibit, condition, or hinder the contracting of the service.

vi) Maintain a record and keep evidence in electronic media of the requests referred to in this fraction and acknowledge receipt with at least a confirmation key or folio number and date of receipt.

vii) Inform that to make credits to their associated Electronic Payment Fund Accounts, Fund Transfer Orders must contain their associated phone number and the name of the electronic payment fund institution.

viii) Request from the Bank of Mexico its registration identification number as an electronic payment fund institution, in accordance with what is provided in the 38th of these Provisions.

ix) Notify their Clients of the association, disassociation, and change of phone number to Electronic Payment Fund Accounts through messages to the same phone number or by the means agreed upon in the contract with the Client. Such notice must be notified on the same Banking Business Day on which the corresponding request is made.

x) Notify the Client who carries out the disassociation or change of phone number that within a period not greater than one Banking Business Day, Fund Transfers associated with said number will be rejected and, if associated with another Electronic Payment Fund Account, subsequent transfers will be credited to the Electronic Payment Fund Account to which it is associated subsequently.

c) Electronic payment fund institutions must identify each of the accepted Fund Transfer Orders and identify them uniquely in the records they keep for each of their Clients where each of their Operations can be identified.

Regarding Fund Transfers referred to Foreign Currency, electronic payment fund institutions may, subject to the authorization referred to in the 4th of these Provisions, carry out those that their Clients who are national legal entities instruct against their respective Electronic Payment Fund Accounts, through a third-party user of systems or procedures for sending and receiving Fund Transfer Orders in Foreign Currency, as well as receive and process the aforementioned Fund Transfers for credit in the Electronic Payment Fund Accounts of their Clients.

20th. Characteristics of Cards.- Cards issued for the disposition of electronic payment funds must be delivered deactivated. For the activation of the Cards, the Client must expressly request it to the electronic payment fund institution through the mechanisms it has available for this purpose.

Likewise, the electronic payment fund institution that issues Cards, whose Operations are carried out through the disposition media networks as established in the Law for Transparency and Ordering of Financial Services, with integrated circuit or chip, must observe security and processing standards approved by the Bank of Mexico in the applicable regulation.

21st. Use of Cards.- For the use of the Card, the electronic payment fund institution must make the following information available to the Client: the unique identification digits, the expiration date, and, if applicable, the brand holder in accordance with what is provided in the General Provisions Applicable to Disposition Media Networks and the security code.

The electronic payment fund institution must allow its Client to use the Card to make payments of any type. Additionally, the electronic payment fund institution that so determines, in accordance with the authorization that, for this purpose, is granted by the CNBV by virtue of the provisions it issues in terms of article 45 of the Law, may allow Clients to withdraw amounts in national currency, derived from the redemption of electronic payment funds, in branches, ATMs, through commissionaires, or in establishments of affiliated companies.

Likewise, electronic payment fund institutions are prohibited from blocking the processing of transactions carried out with the Cards they issue, based on the type of access medium involved in said processing. As an exception to the foregoing, in accordance with the criteria established by the issuing electronic payment fund institutions of Cards, Clients may instruct them, through the electronic, computing, or telecommunications means they have agreed upon for this purpose, that: (i) block the processing of payments with their Card, referred to certain access media involved in said processing, and (ii) establish maximum limits regarding the amount for which operations may be carried out with said Cards or regarding their exclusive use in operations carried out within national territory. The blocks or limits referred to in this paragraph will be understood as indefinite, unless there is an express instruction from the Client indicating otherwise.

22nd. Additional Characteristics.- Electronic payment fund institutions must allow their Clients to carry out, as a minimum, one withdrawal per day from their Electronic Payment Fund Account through an electronic channel in national currency, at no cost, without charging commissions or any other accessory. The aforementioned withdrawal must be through a Fund Transfer to the account that the Client has designated for such purposes in any Financial Entity authorized to receive such transfers.

Additionally, each electronic payment fund institution must allow the Client who so requests, to withdraw in national currency or, with prior authorization from the Bank of Mexico, in Foreign Currency, regarding national legal entities, the total resources that he has in his Electronic Payment Fund Accounts at the institution in question, on the Banking Business Day on which the electronic payment fund institution has received said request.

Section IV
Direct Debits

23rd. Contracting Request.- Electronic payment fund institutions may offer their Clients the Direct Debit service charged against their Electronic Payment Fund Accounts. In this case, the aforementioned institutions must attend to the contracting requests for Direct Debits that their Clients present to them through the means agreed upon in the contract for the opening of the Electronic Payment Fund Accounts.

The Institution of the Direct Debit Client, in the agreement it enters into with the Institutions of the Third Parties Authorized to carry out the Direct Debits, must agree on the obligation of these latter institutions to require the Third Parties Authorized that, when they receive the respective requests, gather at least the information indicated in Annex 1.

In the authorization requests, electronic payment fund institutions may offer the Client the option that the electronic payment fund institution may attend to charges exceeding the limit that, if applicable, the Client has established. When these situations arise, the electronic payment fund institution must notify the Client of such situation within a period not greater than one Banking Business Day from when such situation arises, in order for the Client to authorize that the corresponding charge be made.

24th. Cancellation Requests.- The Institution of the Direct Debit Client must attend to the cancellation request of the Direct Debit that its Client presents to it. The foregoing must be observed regardless of whether the means to authorize the aforementioned Direct Debit was different from the one used to formulate the cancellation request.

(First Section) OFFICIAL GAZETTE Monday, September 10, 2018

Effects of Cancellation.- The cancellation of Direct Debits shall take effect within a period not exceeding three Banking Business Days counted from the date the Institution of the Directly Debited Client receives the corresponding request. Once the cancellation takes effect, the Institution of the Directly Debited Client must refrain from making charges to the Electronic Payment Fund Account related to said Direct Debit.
Objections to Charges.- The Institution of the Directly Debited Client must attend to the objection notifications presented by its Client for charges not recognized as resulting from the Direct Debit.

Clients may present the aforementioned objection notifications to the respective Institutions of Directly Debited Clients within a period of ninety Banking Business Days counted from the date the respective charge was made.

Validity of Charge Objections.- When a Client objects to a charge derived from the Direct Debit service during the first sixty Banking Business Days of the period indicated in the previous Provision, the Institution of the Directly Debited Client must credit the claimed amount no later than the next Banking Business Day following the receipt of the objection, without being able to require the Client to perform any additional procedure.

If the objection is made between Banking Business Day sixty-one and Banking Business Day ninety of the aforementioned period, the Institution of the Directly Debited Client must resolve on the validity of the claim within a maximum period of twenty Banking Business Days and, in the event that the objection is deemed valid, credit the claimed amount no later than the next Banking Business Day following the date of resolution.

Invalidity of Charge Objections.- In the event that the objection to charges for Direct Debits is not valid according to what is stated in Article 27 of these Provisions, the Institution of the Directly Debited Client must make available to the Client the resolution with signature, which may be electronic, from authorized personnel expressing the arguments supporting the invalidity, as well as a copy of the respective supporting documents or evidence, including that provided by the third party in question, through the means agreed upon in the contract for such purposes.

In any case, the Institution of the Directly Debited Client must send such resolution to the Client via email when the Client has presented the objection through the electronic page that the electronic payment fund institution has on its internet website or when so requested when presenting the objection.

Disclosure of Formats for Presenting Requests.- For the purposes indicated in Articles 23, 24, and 26 of these Provisions, electronic payment fund institutions must make available to their Clients, on their internet portals or computer applications enabled for the performance of their Operations, as well as through the means agreed upon for such effect, the formats for requests for contracting the Direct Debit service, its cancellation, or for notifications of charge objections related to said service, in a format substantially identical to the formats attached to these Provisions as Annexes 1, 2, and 3, respectively.
Receipt of Requests.- Electronic payment fund institutions offering the Direct Debit service must receive the requests and notifications referred to in the previous Provision through their internet portals in a section accessible to the general public, in the computer applications enabled for the performance of their Operations, as well as by other means agreed upon with the Client.
Acknowledgment of Receipt of Requests.- The Institution of the Directly Debited Client must confirm to its Client the receipt of the Direct Debit request, cancellation, or charge objection notification presented by the Client, which must be generated through the same means by which the Client presented said request or notification, as well as keep a record of the aforementioned receipt.

Section V
Cross-Border Operations

Information to the Public.- Electronic payment fund institutions that are part of the same Consortium or Business Group to which Foreign Electronic Payment Fund Institutions belong, or that share the same technological infrastructure as foreign electronic payment fund institutions, must publish on their internet website or any medium they use, that the operations of said Foreign Electronic Payment Fund Institutions will not be subject to what is provided in the Law or in these Provisions.

Monday, September 10, 2018 OFFICIAL GAZETTE (First Section)

CHAPTER III
Protection in case of theft or loss of Cards

Notice of Theft or Loss of Cards and Claim of Charges.- Electronic payment fund institutions must allow their Clients to present, on any natural day: (i) notices of theft or loss of the corresponding Card, or (ii) notices of claims for charges to said Electronic Payment Fund Accounts that Clients do not recognize as their own.

For the purposes of the foregoing paragraph, electronic payment fund institutions must allow Clients to present the corresponding notice in any of the forms agreed upon for such effect.

The institution may in no case require the Client to perform any additional procedure to the presentation of the notices referred to in this Provision.

Electronic payment fund institutions that receive any of the aforementioned notices must provide the Client with digital means, at least a reference number of the notice, the date and time it was received. Electronic payment fund institutions must deliver the information referred to at the moment Clients have presented the corresponding notice in the manner referred to in the second paragraph above, or within twenty-four hours after they have presented the notice in any of the ways provided in fraction II. Electronic payment fund institutions must preserve evidence of the information they have provided to their Clients in terms of this Provision.

Information on Liability Regarding Charges.- The electronic payment fund institution that issues a Card must inform the Client, in the contract they sign, of the extent of the Client's liability for charges to the Electronic Payment Fund Account, registered before and after said Client presents any of the notices provided for in the first paragraph of Article 33 of these Provisions.

In the case indicated in the previous paragraph, electronic payment fund institutions must specify to Clients that they will not be liable for charges to Electronic Payment Fund Accounts made due to the use of the Card from the presentation of the notice referred to in the previous Provision, as well as the right of electronic payment fund institutions to demand payment of charges to said account that have been previously authorized by Clients.

Credits Made to Electronic Payment Fund Accounts due to Notice of Theft or Loss of Cards or Charge Objections.- Electronic payment fund institutions must credit, no later than the second Banking Business Day counted from the day the corresponding notice was presented, the amount equivalent to the claimed charges, provided that:

I. The electronic payment fund institution does not prove to the Client through the ruling referred to in Article 36 of these Provisions, that the claimed charges derive from Operations in which, for their performance, the Client was required to use at least two independent elements to authenticate the Operations as authorized by them. The two elements must belong to one of the following categories:

a) Information that the electronic payment fund institution provides to the Client or allows this to generate, for the purpose that only he knows it, so that he can enter it into the system authorized by said institution to initiate the Operation in question, such as password or personal identification number.

b) Information contained, received, or generated by electronic means or devices that only the Client possesses, including that stored in an integrated circuit or chip that is processed according to the standards that the Bank of Mexico determines in the corresponding regulation, as well as that obtained by dynamic password generator devices that the electronic payment fund institution provides to its Client. This, provided that such information is generated with properties that prevent its duplication or alteration and that it is dynamic information that cannot be used more than once.

c) Information derived from the Client's own characteristics, such as those of a biometric nature, including fingerprints, hand or face geometry, patterns in iris or retina, among others.

d) Any other element different from those provided for in the preceding subsections that is determined in the general provisions issued jointly by the Bank of Mexico and the CNBV in accordance with Article 56, second paragraph, of the Law.

Excluded from what is provided in this fraction are those charges that have been the product of an operational fault attributable to the electronic payment fund institution that receives the corresponding notice or, in the case of charges made to another electronic payment fund institution or Financial Entity, to the acquiring electronic payment fund institution or Financial Entity.

II. In the case of notices of theft or loss, said charges are not recognized by the Client and correspond to Operations that have been made during the forty-eight hours prior to the notice and that have not been authenticated using the two factors established in the previous fraction, or

III. In the case of claims for unrecognized charges, the notice is made within ninety Banking Business Days following the date on which the unrecognized charge was made.

In the event that the return of resources to the respective Client for claimed charges that have been made to another electronic payment fund institution is deemed valid, the acquiring electronic payment fund institution that processed the unrecognized charge, shall have the obligation to reimburse the issuing institution the monetary resources linked to said charge within a period that may not exceed two Banking Business Days counted from when it receives the corresponding notification from the issuing institution, in the event that the issuing institution has required the use of authentication factors as established in fraction I of this Provision, but the acquiring electronic payment fund institution has not provided the issuing institution with sufficient elements to validate the authenticity of said factors. The acquiring electronic payment fund institution may only pass on the resources mentioned in the present paragraph to the merchant, in the cases where it has provided the merchant with the necessary elements to request authentication factors as established in fraction I of this Provision and has agreed with the merchant that the merchant will assume the costs for unrecognized charges in which it has decided not to request authentication factors as established in the aforementioned fraction I of this Provision, likewise, in no case may the acquiring electronic payment fund institution force the merchant to use the aforementioned authentication factors.

The credit referred to in the previous paragraph will not be applicable when the issuing institution, within the mentioned period, proves to the Client that the claimed charges correspond to operations with the Card associated with the Electronic Payment Fund Account were made in terms of fraction I of this Provision, unless there is evidence that the charge was the product of an operational fault attributable to the issuing institution or to the acquiring electronic payment fund institution, as would be the case of a duplicate charge.

Reversal of Credits Made to Electronic Payment Fund Accounts as a Result of Notice of Theft or Loss of Cards and Claim of Charges.- In the event that the electronic payment fund institution proves what is provided for in fraction I of the previous Provision within a period subsequent to the two Banking Business Days mentioned, the electronic payment fund institution may reverse the credit it has made to the Electronic Payment Fund Account of the respective Client.

For the purposes of the foregoing, electronic payment fund institutions must make available to the Client, through the means agreed upon for such effect, at the latter's choice, within a period of forty-five Banking Business Days counted from the date on which it received the notice referred to in Article 33 of these Provisions, a ruling in simple and clear language, signed by authorized personnel of the electronic payment fund institution, containing at least the following information:

I. Evidence of the authentication elements used according to what is established in fraction I of Article 35 of these Provisions, as well as the explanation, in simple and clear language, of them and the way in which the verification of these was performed according to the procedures applicable to said authentication factors.

II. Time at which the Operation was performed.

III. Name of the payment recipient where the Operation originated.

If available, the physical address where the device on which the Operation was performed is located or, in its case, the internet protocol (IP) address through which said device was connected to the internet.

CHAPTER IV
GENERAL PROVISIONS

Monday, September 10, 2018 OFFICIAL GAZETTE (First Section)

Sending Digital Requests to the Bank of Mexico.- The authorization requests referred to in Articles 3 and 4 of these Provisions must be sent by electronic payment fund institutions via email to the Authorization, Queries and Legal Control Management of the Bank of Mexico at the address autorizaciones@banxico.org.mx.

Such requests must be digitally signed by the persons corresponding according to what is stated in each Provision. The persons who sign the requests must:

I. Have a valid Digital Certificate issued in their name, and

II. Sign the requests digitally using the tool that the Bank of Mexico determines for these purposes and makes known, as well as the Digital Certificate referred to in fraction I of this Provision.

In cases where electronic payment fund institutions do not have access to the necessary elements to send digitally signed requests, they may deliver them to the Authorization, Queries and Legal Control Management, at Avenida 5 de mayo 2, colonia centro, postal code 06000, Mexico City, in original, in duplicate, and signed by persons who have powers to exercise acts of administration or ownership, for which they must accompany their request letter with a certified and simple copy of the deeds in which the aforementioned powers are recorded, adding a communication in which they specify the reason why they are in the need to send requests by this alternative means.

Sending Requests for Registration Identification Number and Product Type Key to the Bank of Mexico.- Electronic payment fund institutions must send to the Bank of Mexico the requests for the registration identification number of the electronic payment fund institution, as well as the requests for assignment of key of type or types of product referred to in subsections g) and h), of fraction II of Article 19 and Annex 4, respectively, of these Provisions, via email addressed to the Management of Operations and Business Continuity of the Payment Systems at the address ifpe@banxico.org.mx.

The aforementioned requests must be digitally signed by the persons corresponding according to what is stated in the aforementioned Provisions and the aforementioned Annex 4. The persons who sign said requests must:

I. Have a valid Digital Certificate issued in their name, and

II. Sign the request digitally using the tool that the Bank of Mexico determines for these purposes and makes known to electronic payment fund institutions, as well as the Digital Certificate referred to in fraction I of this Provision.

In cases where electronic payment fund institutions do not have access to the necessary elements to send digitally signed requests, they may present them to the Operations and Business Continuity Management of the Payment Systems, at Avenida 5 de mayo number 6, colonia centro, postal code 06000, Mexico City, in original, in duplicate, and signed by persons whose signature has been previously registered before the Instrumentation Management of Operations for the management of various requests for the Bank of Mexico, adding a communication in which they specify the reason why they are in the need to send requests by this alternative means.

Obligation to Supply Information to the Bank of Mexico.- Electronic payment fund institutions are obliged to supply the Bank of Mexico with the transactional information of the Fund Transfers and Electronic Payment Fund Transfers sent and received by their Clients in the terms that the Bank of Mexico determines for such effect.

Without prejudice to the foregoing, electronic payment fund institutions must deliver all the information that the Bank of Mexico requires from them, in the terms and deadlines indicated to them.

Sanction.- Electronic payment fund institutions that fail to comply with what is provided in these Provisions will be sanctioned by the Bank of Mexico in accordance with the Bank of Mexico Law, the Law and other applicable provisions. This, without prejudice to the powers that the laws grant to other authorities.
Marketing of Electronic Payment Funds of a Foreign Electronic Payment Fund Institution.- Electronic payment fund institutions may market electronic payment funds of Foreign Electronic Payment Fund Institutions, which must be clearly and explicitly separated from the electronic payment funds of the electronic payment fund institution.

Monday, September 10, 2018 OFFICIAL GAZETTE (First Section)

Money Transmission Service in Foreign Currency.- Electronic payment fund institutions that provide the money transmission service in Foreign Currency in accordance with what is provided in Article 81-A Bis of the General Law of Organizations and Auxiliary Credit Activities, may only redeem the resources that are sent to Beneficiary Clients by delivering national currency and such services will be considered Fund Transfers for the purposes of these Provisions.

In those cases where the Beneficiary Client of a transfer service by an electronic payment fund institution in accordance with what is provided in this Provision, does not have access to the resources subject to the aforementioned transfer within a maximum period of thirty days, the electronic payment fund institution in question may return the corresponding resources to the originator.

Remote Contracting.- Electronic payment fund institutions may enter into contracts referred to in these Provisions as well as the respective Operations with their Clients via remote means, using for such effect the authentication forms established by the Bank of Mexico and the CNBV in the general provisions they issue jointly, based on Article 56 second paragraph of the Law.

ANNEX 1
FORMAT FOR REQUESTING THE CONTRACTING OF THE DIRECT DEBIT SERVICE

Monday, September 10, 2018 OFFICIAL GAZETTE (First Section) ___ of ________, 20.

(NAME OF THE ELECTRONIC PAYMENT FUND INSTITUTION) I request and authorize that, based on the information indicated in this communication, charges be made in my Electronic Payment Fund Account as follows:

Name of the Third Party Authorized to instruct charges in the Electronic Payment Fund Account:
___________________________________________________.
Reason for the Fund Transfer or Electronic Payment Fund Transfer:
________________________________________. If applicable, the identification number generated by the Authorized Third Party (optional data): _____________.
Frequency of the charge (Billing) (Example: weekly, bi-weekly, monthly, bimonthly, semi-annual, annual, etc.): ____________________________________ or,
if applicable, single indicating the specific day on which the charge is requested to be made: ____________.
Name of the Institution of the Domiciled Client: _________________________________.
Any of the following identification data of the Electronic Payment Fund Account:
Card Number (16 digits): ____________________________, or Standard Basic Key (“CLABE”) of the Electronic Payment Fund Account (18 digits): ___________.
Maximum fixed amount of the charge authorized per billing period: $___________.
This authorization is for an indefinite term ( ), or expires on: _________________.

I am aware that at any time I may request the cancellation of the present Direct Debit.

Sincerely,

_____________________________________________________ (NAME OR BUSINESS NAME OF THE HOLDER OF THE ELECTRONIC PAYMENT FUND ACCOUNT)

ANNEX 2

(First Section) OFFICIAL GAZETTE Monday, September 10, 2018 FORMAT FOR REQUESTING CANCELLATION OF THE DIRECT DEBIT SERVICE

___ of ____________ of 20___.

(NAME OF THE ELECTRONIC PAYMENT FUND INSTITUTION) I request that your institution cancel the direct debit of the following charge:

Name of the Third Party Authorized to instruct charges in the Electronic Payment Fund Account:
_________________________.
Reason for the Fund Transfer or Electronic Payment Fund Transfer whose Direct Debit is requested to be cancelled: ________________.

If applicable, the identification number generated by the Authorized Third Party (optional data):
_______________________________________________________.

Any of the identification data of the Electronic Payment Fund Account where the charge is made, as follows:
Card Number (16 digits): ________________________________, or Standard Basic Key (“CLABE”) of the Electronic Payment Fund Account (18 digits):
____________.

I am aware that the cancellation will take effect within a period not exceeding 3 Banking Business Days counted from the date of presentation of this request.

Sincerely,

____________________________________________________ (NAME OR BUSINESS NAME OF THE HOLDER OF THE ELECTRONIC PAYMENT FUND ACCOUNT)

ANNEX 3

Monday, September 10, 2018 OFFICIAL GAZETTE (First Section) FORMAT FOR OBJECTING TO DIRECT DEBIT CHARGES

___ of ________, 20.

(NAME OF THE ELECTRONIC PAYMENT FUND INSTITUTION) I request that your electronic payment fund institution return the charge of $_________ made on day ___ of _______, 20, to my following Electronic Payment Fund Account (16 digits of the Card or 18 digits of the Standard Basic Key “CLABE”): _______________________.

The identification number of the charge generated by the Third Party Authorized is (optional data):
_____________________.

Regarding this, I declare that:
(* Mark with an X the corresponding option)
*____ I did not authorize the charge;
*____ The amount of the charge exceeds the amount authorized per period; *____ The charge was improperly made more than once in the same billing period; *____ The authorization was cancelled prior to the making of the charge, or *____ Any other circumstance: _____________________________________.

I am aware that if the resolution is against me and that bank intends to charge for the management, the charge of the commission cannot exceed: $ _______ (Amount to be included by the bank)

Email address or telephone number to receive a response to this request (optional data):
_________________________________.

Sincerely,

____________________________________________________ (NAME OR BUSINESS NAME OF THE HOLDER OF THE ELECTRONIC PAYMENT FUND ACCOUNT)

ANNEX 4
STRUCTURE OF THE STANDARD BASIC KEY (CLABE)

(First Section) OFFICIAL GAZETTE Monday, September 10, 2018 The “CLABE” string indicates that the identifier is an 18-digit number that must have the following structure:

The first 3 digits are the last 3 digits of the key assigned to the electronic payment fund institution by the Bank of Mexico, in accordance with section 38.a of these Provisions.
The next 3 digits correspond to the key corresponding to the type or types of products assigned by the Bank of Mexico, in accordance with section 38.a of these Provisions.
The next 11 digits may include the account number, contract number, etc., with which the electronic payment fund institution identifies the financial product of a client.
The last digit must be a verifier digit that is calculated according to the procedure described below:

The Bank of Mexico Association, A.C., designed the procedure to generate the verifier digit of CLABE-type accounts. In this section, this procedure is described by means of an example, for the account number 00218003224094670.

Consider the following weighting factors for each digit:

Position 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Weighting 3 7 1 3 7 1 3 7 1 3 7 1 3 7 1 3 7

The verifier digit is calculated as follows:

Multiply each digit of the account number by the respective weighting factor:

Position 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Account 0 0 2 1 8 0 0 3 2 2 4 0 9 4 6 7 0 Weighting 3 7 1 3 7 1 3 7 1 3 7 1 3 7 1 3 7 Result 0 0 2 3 56 0 0 21 2 6 28 0 27 28 6 21 0

Take the modulo 10 of each result obtained in step 1:

Result 0 0 2 3 56 0 0 21 2 6 28 0 27 28 6 21 0 Modulo 10 0 0 2 3 6 0 0 1 2 6 8 0 7 8 6 1 0

Sum the results of each of the modulo operations performed in step 2.

Result 0 0 2 3 56 0 0 21 2 6 28 0 27 28 6 21 0 Modulo 10 0 0 2 3 6 0 0 1 2 6 8 0 7 8 6 1 0 Sum 50

Take the modulo 10 of the sum calculated in step 3:
A = 50 mod 10 = 0
Take the value A obtained in step 4 and subtract it from 10.
B = 10 – A = 10 - 0 = 10
The Verifier Digit is the result of obtaining the modulo 10 of the number B calculated in step 5:
Verifier Digit = mod 10 10 = 0
The CLABE is obtained by adding the calculated verifier digit to the original account number.

In this way, in this example, the CLABE is 002180032240946700

TRANSITORY
SINGLE.- The provisions of this Circular shall enter into force the day following its publication in the Official Journal of the Federation.

Mexico City, September 5, 2018.- The General Director of Operations and Payment Systems, Jaime José Cortina Morfín.- Initials.- The General Legal Director, Luis Urrutia Corral.- Initials.

For any queries regarding the content of this Circular, please contact the Department of Authorizations, Queries and Legal Control, at the phones (55) 5237-2308, (55) 5237-2317 or (55) 5237-2000 Ext. 3200.

Circular 12/2018 — Operations of Electronic Payment Fund Institutions

Lineage: In force

Similar documents from other regulators