Brazil Makes Pix Automático Mandatory for Recurring Payments

Overview

• Effective October 13, banks must support recurring debits via Pix Automático for eligible billers, with individuals as payers and companies or service providers as receivers.
• Users approve a single mandate in their banking app, choose fixed or variable amounts with per-charge limits and frequency, and can modify or cancel the authorization at any time.
• To curb fraud, institutions must vet receivers’ registration data, business compatibility and relationship history, and only firms active for more than six months can offer the service.
• Payers are not charged for using Pix Automático, while banks may levy fees on receiving businesses, which gain simpler collections compared with traditional bank-by-bank debit agreements.
• Payments run 24/7 with notices scheduled typically 2–10 days before due dates (up to 90 at some banks), debits are attempted twice on the due date with three later retries, and charges are processed in full with any late fees included in the next billing.