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The dispute mechanism hardwires consumer redress into Pix, strengthening consumer protections and cementing Brazil’s position as a global leader in instant payments.
Pix users can now challenge fraudulent transfers directly via their banking app, following the Central Bank of Brazil’s (BCB) launch of a new “dispute button” feature.
According to the BCB, the aim is to allow Pix transactions to be disputed entirely digitally, without human intervention. The process should also accelerate the blocking of funds in the scammer’s account, improving the chances of recovery.
Formally known as the Special Return Mechanism (MED) self-service tool, the button can be activated in cases of fraud, scams or coercion.
Once a user triggers the function, the transaction details are immediately forwarded to the recipient’s financial institution, which must block the disputed funds.
Both banks then have a week to review the case, with possible refunds processed within 11 days. However, the mechanism does not apply to commercial disputes or errors, such as sending money to the wrong Pix key.
"When disputing a transaction, the information is instantly forwarded to the scammer's bank, which must block the funds in your account, if any. Partial amounts may also be blocked,” said Breno Lobo, the deputy head of the BCB’s department of competition and financial market structure.
“After the block, both banks have up to seven days to review the dispute. If they agree that it is indeed a scam, the refund is made directly to the victim's account. The deadline for this refund is up to eleven days after the dispute,"
The launch of the dispute button follows a series of regulatory measures aimed at tightening security and compliance within Brazil’s instant payments system.
For example, in September, the BCB published Resolution No. 506, which reinforced security requirements for Pix participants, and Resolution No. 507, which introduced a new penalties manual.
The changes include stricter entry requirements for participants, longer exclusion periods for sanctioned firms and expanded use of precautionary blocks.
The penalties framework has also been updated to allow proportionate fines, sanctions for repeat offences and exclusion from Pix in severe cases.
Why has the dispute button been introduced?
The BCB has introduced the new dispute button in response to several key trends, particularly the growing fraud risk in instant payments across the world.
Pix’s rapid adoption, with more than 150m users, has made it an attractive target for scammers.
The dispute button helps to fill the consumer protection gap that often exists between card payments and instant payments.
Users of the platform previously had limited recourse once a payment was sent, relying on their bank to initiate a return request.
There was no simple, standardised, user-driven process, but the dispute button changes this by giving consumers direct access to the MED, which was previously handled only between institutions.
Pix has been positioned by Brazil as a model for other countries, including other Latin American jurisdictions such as Colombia, and strengthening consumer protection reinforces its reputation as both innovative and safe.
On the front foot
The dispute button signals that Brazil is taking proactive steps in payments regulation, and is acting quickly. This is often a challenge for other jurisdictions such as the EU and UK.
The BCB is clearly aware of the negative impact of adverse media coverage following a cyber attack in September 2025, which revealed vulnerabilities.
Rather than waiting for fraud to erode confidence, the BCB has introduced a streamlined remedy that balances speed with due process.
Few instant payment systems globally offer such a user-facing dispute function, positioning Brazil as a potential standard-setter as other jurisdictions, including the EU, consider similar frameworks.
By creating such an accessible redress channel, the BCB is aiming to build confidence in Pix as it becomes critical infrastructure for everyday payments.
The move marks a shift from simply driving adoption to also implementing resilience and trust.
This could be pivotal in ensuring that the central bank cements Pix’s reputation as not just fast and low-cost, but also secure and enforceable.
For payments firms, it signals a growing expectation that fraud redress mechanisms should be fast, digital and consumer-friendly.
As other regulators look to Brazil’s example, firms should anticipate higher standards of protection and operational accountability.
