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The Central Bank of Chile (BCCh) has updated the regulations concerning the issuance and operation of payment cards to reflect changes in the country’s retail payment sector.
The BCCh’s council approved the new regulations with the aim of enhancing the development of efficient, secure and inclusive payment systems.
Its goal is to expand the benefits of electronic payment methods to a broader population, while also ensuring robust security measures and maintaining system continuity.
The regulation includes significant changes such as reformulating payment service providers (PSPs) and introducing two new business models: cross-border acquiring for payments abroad with Chilean-issued cards; and closed payment systems for transactions between accounts of the same prepaid card issuer.
The BCCh revised the regulations based on public feedback and coordination with the Financial Market Commission (CMF).
It also published an explanatory document detailing the 2023 consultation comments and their integration into the new regulations.
Noteworthy changes include enhanced oversight for PSPs: those settling payments to merchants now need to register as payment card operators with the CMF earlier.
To ease this transition, initial prudential requirements will be lower, the central bank confirmed.
The regulatory framework for cross-border acquiring mandates that only CMF-registered operators compliant with destination jurisdiction regulations can process transactions with Chilean-issued cards.
The central bank has also introduced provisions for prepaid cards from non-bank entities, emphasising user fund transfers to prevent payment system fragmentation, in line with the Fintech Law.
These updates also align with the Supreme Court's recent ruling on General Instruction No. 5 from the Court for the Defense of Free Competition, which modifies rules on credit, debit and prepaid cards.
Although the regulatory adjustments are effective immediately, a transitional period is being provided.
This grace period allows companies currently operating in the market to adapt to the new requirements and seek CMF registration without disrupting their operations.
