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Brazil’s Central Bank Makes Card Networks Liable for Payment Settlement Failures

The resolution clarifies responsibilities across Brazil’s payment chain to improve security.

Overview

  • Resolução BCB nº 522 takes immediate effect, making Visa, Mastercard, Elo and other schemes the final guarantors of paying receiving users if other safeguards fail.
  • Card brands have 180 days to file authorization requests and implement regulatory and operational adjustments, with current regulations remaining valid until approvals.
  • The rule caps participants’ financial exposure to chargebacks at 180 days after authorization, after which liability can shift to the card brand if the arrangement permits.
  • Schemes are barred from delegating sub-acquirer risk management to acquirers, from requiring guarantees between participants, and from allowing issuer discrimination, reinforcing honor all cards.
  • The framework mandates fuller transparency, centralized monitoring with sub-acquirer participation in centralized settlement, and stronger controls for fraud prevention and AML/CFT compliance.