2016 – Year of the Bicentennial of the Declaration of National Independence

COMMUNICATION “A” 6099 14/11/2016

TO FINANCIAL ENTITIES,
TO ELECTRONIC LOW‑VALUE COMPENSATION CAMERAS, TO AUTOMATIC TELLER MACHINE NETWORK ADMINISTRATOR COMPANIES:

Ref.: Circular SINAP 1‑51
Immediate Debit. Operational Instructions. Ordered Text.

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We address you to inform that this Institution has resolved the creation of the Immediate Debit payment method (DEBIN) which, through specific functionalities, will allow the collection of goods and/or services by “online” debit from the banking client’s account once the operation is authorized, with “online” credit to the receiving client’s account.

The pages corresponding to the normative ordering of the reference, with the description of the operation, are attached. In addition, a deadline of 240 calendar days from the issuance of this communication is set for the Low‑Value Clearing House (CEC BV) to fulfill matters within its competence and responsibility that are necessary for the development of the operation.

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Luis D’ Orio Julio Pando

Principal Manager of Payment Systems and Current Accounts General Deputy Manager of Payment Means

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ANNEX

INDEX

Section 1. Introduction

• 1.1. Definition
• 1.2. Objective

Section 2. General Characteristics

• 2.1. Scope
• 2.2. Participants
• 2.3. Currency
• 2.4. Hourly Availability and Credit Settlement Times

Section 3. Processes and Functions

• 3.1. Channel – Functionality for adhesion to the DEBIN operation
• 3.2. Channel – Functionality for loading a DEBIN order
• 3.3. Channel – Functionality for DEBIN authorization
• 3.4. Administration Module
  • 3.4.1. Collections. Registration and validation of DEBIN
  • 3.4.2. Payments
  • 3.4.3. Coverage Scheme
  • 3.4.4. Safekeeping

Section 4. Responsibilities

• 4.1. Of the Channel (carried out by the Financial Entities)
• 4.2. Of the Low‑Value Clearing House (CEC BV)

Section 5. Supervision

Section 6. Security

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NATIONAL PAYMENT SYSTEM – IMMEDIATE DEBIT
B.C.R.A.

INDEX

Version: 1a. COMMUNICATION “A” 6099
Validity: 15/11/2016

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1. INTRODUCTION

1.1. DEFINITION

Immediate Debit (DEBIN) is a payment method that debits the banking client’s account once the respective charge for a good and/or service has been authorized.

It is based on a collection application and on functionalities available in internet banking, mobile banking, and any other channels that the BCRA may make available in due course. It consists of:

• a debit authorization request entered through the channels specified by the selling banking client or service provider, to be authorized by the buying banking client or service beneficiary;
• the debit authorization that resolves the payment online, also performed through the indicated channels, by the buying banking client or service beneficiary;
• the online debit from the buying banking client’s account (or service beneficiary) and the online credit to the selling banking client’s account (or service provider).

1.2. OBJECTIVE

The DEBIN operation aims to provide banking clients with safe and accessible mechanisms for online collection of goods and/or services.

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2. GENERAL CHARACTERISTICS

2.1. SCOPE

DEBIN may be used for the payment of goods and/or services by natural and legal persons, buyers and sellers, who hold accounts in financial entities that, by their characteristics, are enabled to make payments by account debit or receive payments by account credit, respectively. For this purpose they must access the specific menu options made available in the established channels.

2.2. PARTICIPANTS

The service providers will be the financial entities (EEFF) or, non‑exclusively, third‑party operators, and the Low‑Value Electronic Clearing House (CEC BV).

2.3. CURRENCY

The operation will be available for debits in pesos and dollars, between accounts of the same currency.

2.4. HOURLY AVAILABILITY AND CREDIT SETTLEMENT TIMES

The DEBIN operation will be enabled every day, 24 hours.

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3. PROCESSES AND FUNCTIONS

3.1. CHANNEL – FUNCTIONALITY FOR ADHESION TO THE DEBIN OPERATION (carried out by the EEFF)

This functionality must be included as the option “Adhesion/Authorization DEBIN” within the menu option “DEBIN Payments”, in internet banking (home banking) and mobile banking channels, and in any other channels that the BCRA may make available in due course. The EEFF may develop this requirement directly or through third parties (Operators), non‑exclusively.

3.1.1. It will allow the banking client, at any time, 24 hours a day, to register adhesion to the DEBIN operation, recording at minimum the following data:

• Alias of the CBU(s) –if registered–, or CBU(s) the client wishes to integrate into the DEBIN operation, indicating for each one:
  • Whether it is enabled for debit as a buyer of goods and/or services, indicating the alias of the CBU(s) –if registered– or the CBU(s) to be credited –whose charges/debits it authorizes–, and selecting one of the following options:
    • Indicating a maximum daily DEBIN amount to be debited from the account:
      • for a particular date, or
      • for a period of time.
    • Not registering a limit (so that the maximum amount to debit is the account balance):
      • for a particular date, or
      • for a period of time.
  • Whether it is enabled to credit as a seller of goods and/or services.

3.1.2. It will interact with the administration module so that the relevant validations are performed and the CBUs and/or CBU aliases that the banking client integrated into the DEBIN operation are recorded in the repository.

3.2. CHANNEL – FUNCTIONALITY FOR LOADING A DEBIN ORDER (carried out by the EEFF)

This functionality must be included as the option “DEBIN Order” within the menu option “DEBIN Payments”, in internet banking (home banking) and mobile banking channels, and in any other channels that the BCRA may make available in due course. The EEFF may develop this requirement directly or through third parties (Operators), non‑exclusively.

3.2.1. It will allow the selling banking client or service provider who has adhered to the DEBIN operation, at any time, 24 hours a day, to load a DEBIN order –which must be authorized by the buying banking client or service beneficiary either through prior adhesion to the operation or through subsequent authorization of the order. For this purpose, the application must allow entry of the following data, observing the provisions regarding entry of CBU “aliases” included in the “Security” section:

• Alias of the CBU –if registered– or CBU to be credited –of the seller–.
• Alias of the CBU –if registered– or CBU to be debited –of the buyer–.
• Concept –according to the typification that this Institution may provide in due course-.
• Amount to be collected.

3.2.2. It will generate the DEBIN order recording the following minimum data:

• Date/time of the operation.
• Entity to be debited.
• Branch to be debited.
• Alias of the buyer’s CBU to be debited.
• Buyer’s CBU to be debited.
• Name of the buyer’s account holder.
• CUIT/CUIL/CDI/DNI of the buyer’s account holder.
• Amount.
• Concept –according to the typification that this Institution may provide in due course-.
• Beneficiary entity –receiver of the credit-.
• Beneficiary branch –receiver of the credit-.
• Alias of the seller’s CBU to be credited.
• Seller’s CBU to be credited.
• Name of the seller’s account holder.
• CUIT/CUIL/CDI/DNI of the seller’s account holder.

3.2.3. It will interact with the administration module so that the adhesion of the buyer’s CBU or CBU alias is validated and verified.

3.2.4. If the administration module verifies that the operation is not authorized because there is no prior adhesion to the operation or the adhesion does not match the operation, it will send information to the functionalities of the involved entities so that, on the one hand, the steps to be followed are indicated to the seller client, and on the other hand, the buyer client is presented, when executing the “DEBIN Authorization” option, with the operation data for its authorization.

3.2.5. When it is confirmed that the operation is authorized –through adhesion to the operation–, the administration module will verify and manage the coverage and, if applicable, confirm the DEBIN order by sending information to the functionality of the debiting entity, which will verify the balance and debit the client’s account, confirming the operation to the administration module. Likewise, the administration module will send information to the functionality of the crediting entity for the realization of the online credit in the beneficiary’s account.

When the operation is completed, the functionalities of the involved entities will confirm to the participating clients that the DEBIN has been recorded, via on‑screen information and a receipt through messaging. All involved transactions will be replicated to the administration module for inclusion in the repository or for activity logging.

3.3. CHANNEL – FUNCTIONALITY FOR DEBIN AUTHORIZATION (carried out by the EEFF)

This functionality must be included as the option “DEBIN Authorization” within the menu option “DEBIN Payments”, in internet banking (home banking) and mobile banking channels, and in any other channels that the BCRA may make available in due course. The EEFF may develop this requirement directly or through third parties (Operators), non‑exclusively.

3.3.1. It will allow the buying banking client or service beneficiary to authorize, at any time, 24 hours a day, the DEBIN order issued by the selling banking client or service provider. For this purpose the application must display on screen the registered DEBIN order for the account, including the following minimum data:

• Date/time of the operation.
• Entity to be debited.
• Branch to be debited.
• Alias of the buyer’s CBU to be debited.
• Buyer’s CBU to be debited.
• Name of the buyer’s account holder.
• CUIT/CUIL/CDI/DNI of the buyer’s account holder.
• Amount.
• Concept –according to the typification that this Institution may provide in due course-.
• Beneficiary entity –receiver of the credit-.
• Beneficiary branch –receiver of the credit-.
• Alias of the seller’s CBU to be credited.
• Seller’s CBU to be credited.
• Name of the seller’s account holder.
• CUIT/CUIL/CDI/DNI of the seller’s account holder.

3.3.2. The buying banking client will confirm or reject the operation. If the DEBIN order was authorized, the functionality will verify the account balance and interact with the administration module to perform verification and management of the coverage scheme and, if applicable, confirm the generation of the DEBIN and execute the actions described in point 3.2.5.

3.4. ADMINISTRATION MODULE (carried out by the CEC BV)

The administration module, whose development and management will be the responsibility of the CEC BV, will be available as a processing option for collections and payments. The designed system will be aligned with the international premises imparted in the modernization of the payment structure promoted by this Institution, including integration and interoperability aspects.

It will interact with the channel and execute the following actions:

3.4.1. Collections – Validation and Registration of DEBIN

• Adhesion: It will validate and register in the repository the CBUs or CBU aliases that the banking client adhered to the DEBIN operation, as indicated in the adhesion functionality.
• DEBIN Order: Prior to registering a DEBIN order, it will verify the adhesion of the seller’s CBU or CBU alias. It will safeguard the activity record. Once the DEBIN order is entered, it will validate and verify the adhesion of the buyer’s CBU or CBU alias. If it finds that the operation is not authorized because there is no prior adhesion or the adhesion does not match the operation (exceeds limit, mismatched date or beneficiary), it will send information to the functionalities of the involved entities. When it confirms that the operation is authorized –through adhesion or specific authorization– it will proceed to verify and manage the coverage.

3.4.2. Payments

The module will also process transactions related to payments made through immediate transfers executed via the channels enabled by the BCRA.

For this purpose, all financial entities must be able to receive and process debit or credit orders sent by the administration module, issuing the respective confirmation:

1. The administration module will receive the transfer order from the channel and will perform verification and management of the coverage scheme, sending information to the debiting entity’s functionality, which will verify the balance and debit the client’s account, confirming the operation to the administration module. Likewise, the module will send information to the crediting entity’s functionality for the realization of the online credit in the beneficiary’s account.
2. Once the operation is completed, the functionalities of the involved entities will confirm to the participating clients that the immediate transfer payment has been recorded, presenting on‑screen information and sending a receipt via messaging. All involved transactions will be replicated to the administration module for inclusion in the repository or for activity logging.

3.4.3. Coverage Scheme

The operation will have a specific coverage scheme to ensure the viability of collections and payments. The administration module will verify and manage coverage through online netting of debits and credits, backed by additional guarantees provided by each entity for the operation, in accordance with the guarantee scheme guidelines regulated by the Institution. It will also settle net compensation balances in the LBTR “Electronic Payment Medium” (MEP) system.

3.4.4. Safekeeping

The repository will contain the CBUs and CBU aliases that have adhered. It will also safeguard the entered DEBIN order and the debit and credit transactions of the registered DEBIN.

Furthermore, it will maintain the activity log preserving the remaining transactions entered in the operation. It will allow data exploitation for the purpose of evolutionary analysis inherent to the BCRA’s supervision exercise. It will also provide information necessary for the EEFF and other bodies to carry out anti‑money‑laundering, terrorism financing and other illicit activity controls, or to perform other verifications as appropriate.

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4. RESPONSIBILITIES

4.1. OF THE CHANNEL (carried out by the EEFF)

1. Assume responsibility for the correct processing of electronic information transmitted to the actors/processes involved in the operation.
2. Implement the functionalities within its competence, enabling the options in internet banking (home banking) and mobile banking that allow loading of DEBIN adhesion, DEBIN order, and DEBIN authorization, including query options.
3. Keep the functionalities available and operational during the daily operational cycle within the established schedule.
4. Interact with the administration module, the CEC BV, other channels and participating entities, guaranteeing updates and information flow for the completion of the DEBIN operation.
5. Replicate information in the DEBIN Repository.
6. Implement and maintain the mechanisms and processes necessary to guarantee the security of the operation.
7. Manage communications between its data center, other channels, the CEC BV, the administration module, and the participating entities.

4.2. OF THE LOW‑VALUE CLEARING HOUSE (CEC BV)

1. Assume responsibility for the correct processing of electronic information transmitted to the other actors/processes involved in the operation.
2. Implement applications that allow validation and registration of the CBUs that the banking client integrated into the DEBIN operation, validation and verification of DEBIN orders, compensation of approved DEBIN transactions, and management of the coverage scheme, recording DEBIN in the repository.
3. Keep the functionalities available and operational during the daily operational cycle within the established schedule.
4. Interact with the channel(s) and financial entities, guaranteeing updates and information flow for the completion of the DEBIN operation.
5. Record replicated information including the different instances of the operations – adhered CBUs, DEBIN orders, their status –completed or rejected –and, where applicable, the registered DEBIN – and manage the DEBIN repository, generating query modules that allow control of the operation’s evolution.
6. Implement and maintain the mechanisms and processes necessary to guarantee the security of the operation.
7. Manage communications between its data center, the channel(s) and the financial entities.

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5. SUPERVISION

DEBIN covered by this norm must be individualized by modality and must conform to the supervision mechanisms that will be defined in due course.

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6. SECURITY

The functionalities must have an appropriate level of security so that the client is not exposed to misuse of the account, the genuineness of the operations is guaranteed, and proper transaction records are generated.

In addition, both the operation defined in this norm and all participating agents of the system must comply with the requirements set out in Section 6 of the standards on “Minimum Requirements for Management, Implementation and Control of Risks Related to Information Technology, Information Systems and Associated Resources for Financial Entities”.

Applications that require the client to enter a CBU “alias” must present a confirmation screen to the client that, at minimum, includes the following data: account type, CBU, alias, account holder name, account number, bank, and CUIT/CUIL/CDI/DNI. The user may cancel the operation, which can only be confirmed when the corresponding option is effectively selected.

Additionally, the mechanisms established in this regulation must conform to the technical security provisions that this Institution may establish.