Portuguese 
Central Bank Extends the Deadline for Fraud-Related Disputes on Pix Payments from 30 to 80 Days, While Preparing Enhanced Tracking of Transferred Funds Between Accounts and Removing the R$500 Cap for Pix via Proximity in October.
On Tuesday, the Central Bank announced changes to the time frame for specific disputes via the Refund Mechanism, referred to as MED, within the Pix payment system. In cases involving suspected fraud in refunds, the period, previously set at 30 days, can now extend up to 80 days.
According to ND Mais, this change represents a 166% increase in the available timeframe for these cases, giving merchants and service providers more time to present documentation proving that a disputed transaction was legitimate. This modification is part of a broader set of planned updates for the Pix system.
MED Deadline Extended from 30 to Up to 80 Days
The main announcement involves extending the time available for certain disputes related to the MED.
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The previously set limit of 30 days can now be extended to 80 days in cases of suspected fraud related to refunds, according to the rules presented by the Central Bank.
Extension Represents a 166% Increase in the Deadline
The difference between the two periods corresponds to a 166% increase, according to the source.
This additional time can be used by merchants and service providers to gather information and documentation before the conclusion of the analysis.
Invoices and Receipts Can Help Demonstrate a Legitimate Operation
Documents that may be submitted include invoices, sales receipts, and records of product delivery or service provision.
These elements can help demonstrate that the transfer occurred within a legitimate business relationship.
Rule Targets Disputes Made After Receipt of Product or Service
One cited scenario involves individuals who make a purchase and later attempt to invoke the refund mechanism.
The change aims to make it more difficult for someone to receive a product or service and later attempt to recover their money by claiming fraud.
Dispute does not mean automatic refund
The extension of the deadline does not stipulate that the disputed amount will be automatically returned.
The financial institutions involved remain responsible for analyzing each case, maintaining the necessity to evaluate the circumstances of the transaction before any potential reimbursement.
Refund Mechanism does not function as a typical purchase cancellation
The Special Refund Mechanism was created by the Central Bank for specific situations related to Pix.
The resource is primarily aimed at suspicions of fraud or operational failures in the transfer and should not be treated as a conventional mechanism for canceling purchases.
Tracking will be able to follow money between different accounts
Another expected update expands the ability to track resources after fraud has occurred.
The system should allow for tracking the path the money takes when amounts are transferred to different accounts, even after the initial transaction.
Central Bank seeks to monitor swiftly moved funds
The measure aims to enhance the ability to identify financial flows related to fraud.
The goal is to facilitate the location and potential recovery of funds even when money rapidly passes through different accounts or financial institutions.
Pix by Proximity will lose the fixed limit of R$ 500 in October
Another change is expected in October.
Pix by Proximity will no longer have the fixed limit of R$ 500 currently associated with this payment method.
Proximity payments will follow users’ general limits
After the change, this payment method will align with the same limits set for other Pix transactions for each user.
This means that the ceiling will no longer be a fixed amount of R$ 500 specifically tied to Pix by Proximity and will depend on the limits set for that account.
Restrictions remain for devices that are not yet registered
The changes do not eliminate the specific protective mechanisms applied to unknown devices.
The security limits for devices not yet registered by the client remain in effect, preserving restrictions specific to transfers made under these conditions.
Rules Aim to Reduce Losses After Account Theft or Breach
These limitations apply in situations that may involve cell phone theft, bank account breaches, or the use of unfamiliar devices to transfer funds.
The Central Bank is also enhancing mechanisms for blocking, tracking, and refunding amounts to hinder the flow of resources obtained through scams.
New Deadline Provides More Time to Verify Transaction Origins
With the expansion of the Refund Mechanism, financial institutions, consumers, and merchants will have more time to present evidence related to the origin and legitimacy of transactions prior to any potential refunds.
The set of changes includes a timeframe of up to 80 days for certain disputes, expanded tracking of amounts transferred between accounts, and, starting in October, the removal of the fixed limit of R$ 500 (about US$90) on Pix by Proximity.
In your opinion, which change could have the greatest impact on combating fraud: the 80-day deadline, the tracking of money between different accounts, or the new rules for Pix by Proximity? Share your thoughts in the comments.
