On November 16th 2020, Pix, the instant payments platform developed by the Central Bank of Brazil, was launched. This new payment method allows transactions to occur in under 10 seconds, and it operates 24/7, including weekends and holidays.
As opposed to regular bank transfers – such as TEDs and DOCs, where users must inset all the required personal information manually – all that is required from Pix users to send and receive money is a registered address key.
However, many people, especially foreigners or Brazilians living abroad, aren’t familiar with this payment method. To help guide users through this process, we have listed the frequently asked question about Pix.
What institutions are offering Pix?
All financial institutions and payment institutions can offer their clients and users Pix, including fintech companies. However, institutions with over 500,000 active accounts are obligated to offer Pix.
What are the address keys – or Pix keys?
The address key is a way to identify the user’s account. There are four types of address keys that users can use:
• Email address
• Cellphone number
• Random key – a set of random number, letters, and symbols
This key binds the basic information to the user’s complete account information, allowing users to send and receive money using only an address key.
How do users register an address key?
Users can register an address key directly with their financial institutions and payment institutions. To complete the registration, users must confirm the key’s ownership and link it to their accounts by inserting a code provided by the institution via SMS or email.
It is essential to highlight that while users are not obligated to register an address key, they highly recommend that they benefit from more agility when sending and receiving payments.
How do users send payments with Pix?
Users can send money by using the receiver’s address key, scanning a QR Code or manually inserting the receiver’s account information.
How do users receive payments with Pix?
There are two ways to receive payments with Pix: by informing the payee of your address key, or by generating a QR Code.
QR Codes can be both static and dynamic. With static QR Codes, the transaction amount doesn’t need to be included, which means payees must manually insert the payment amount; with dynamic QR Codes, however, the amount must be included.
How much does Pix cost?
Pix is free of costs to individuals. For Legal Entities. However, the cost is much lower than the amount charged today for TED transactions.
Is it possible to request a refund or cancel a transaction carried out with Pix?
As the transactions with Pix will occur in real-time, they cannot be canceled. However, it is possible to request the recipient a refund.
It is also possible to change the amount to be paid or cancel the transaction before confirming the payment. In special cases, such as fraud, the Central Bank has developed a transaction called in Portuguese, Mecanismo Especial de Devolução (MED), or Special Return Mechanism in English.
Is there a minimum or maximum amount to make a Pix?
There is no minimum limit for transactions with Pix, only at night time — the limit for digital payments between individuals, between 8 pm and 6 am, is BRL 1,000.
In general, there is also no maximum limit for transactions, however, participants can establish maximum limits in order to prevent risks. These limits may not be lower than those established for other payment methods, nor may they limit the use of Pix in regards to the characteristics and profile of the payer.
After paying or receiving a Pix, does the user receive a receipt?
Yes. After completing a transaction, a receipt is generated for both the payer and the recipient. The receipt generated to the payer should contain:
• ID / Transaction number
• Transaction amount
• Date and time
• Description of the transaction
• Recipient information
Will Pix have more functionalities besides the typical money transfer?
Yes. Last year, the Central Bank of Brazil announced some features to be launched this year, such as automatic charges, automatic recurring payments, and contactless payments. For further details, check this post about Pix’s new functionalities predicted to 2022.
Do you have any thoughts or questions about Pix? Let us know in the comment section below!