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Central Bank Introduces An Amendment To Payment Cards Operation Regulations

Author:Mr Diego Peralta and Diego Lasagna
Profession:Carey
 
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On December 26, 2018, the Central Bank of Chile published an amendment to Chapter III.J.2 of its Financial Regulations Compendium, on Payment Cards Operation, after a one-month public consultation that allowed the general public to make comments or observations to the proposal.

The main amendments can be summarized as follows:

Review of the definition and requirements of the Brand Holder, for Operation purposes: In addition to specify certain aspects related to the required risk classification, it is now ruled that the Brand Holder can be a foreign State, a foreign public or private entity or a foreign company owned or managed by a foreign State, to the extent that the long-term sovereign debt of such foreign State has at least a BBB risk rating, or its equivalent.1 Incorporation of a new Operation method: A new alternative is set, allowing Payment Card Operators to provide their services by means of an agreement with another Operator, to the extent that this agreement determines, at least: (i) which party will assume the responsibility for the payment to the affiliated merchants, and (ii) the necessary measures to ensure the settlement and/or full and timely payment of the transactions owed to the affiliated merchants. Reinforcement of the non-exclusion principle in the Operation: Operators are now prohibited to set arbitrary provisions, restrictions or limitations on their agreements with other Operators or Payment Processing Services Providers ("PSP"). Pursuant the new regulations, if an Operator denies the request by another Operator or PSP for entering into an agreement, the denying...

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