Pix
Pix

Pix: 10 questions and answers about Brazil’s instant payments

On November 16th, Pix, the instant payments platform developed by the Central Bank of Brazil, will be available to the Brazilian population. This new payment method will allow transactions to occur in under 10 seconds, 24 hours a day, 7 days a week, including weekends and holidays.

However, as of October 5th, users will be able to register their address keys. This will enable them to send and receive money using only the information bound to the account, instead of manually inserting all the personal information that is required today when sending payments with TEDs or DOCs – although this option remains available.

To help guide users through this process, we have separated out the main questions and answers about Pix. Take a look!

 

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.

 

When will users be able to use Pix?

Pix will be available to the population on November 16th, as an additional payment option alongside TEDs and DOCs. This option will be available in the channels users already use, such as their internet banking apps.

However, users will be able to register the address key as of October 5th.

 

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:

•    CPF/CNPJ

•    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 important to highlight that, while users are not obligated to register an address key, it is highly recommended they do so in order to benefit from more agility when sending and receiving payments.

 

How will users send payments with Pix?

Users will be able to send money by using the receiver’s address key, scanning a QR Code or manually inserting the receiver’s account information.

 

How will users be able to 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 will Pix cost?

Pix will be free of costs to individuals. For Legal Entities, however, the cost will be much lower than the amount charged today for TED transactions.

 

Will it be 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.

 

Will there be a minimum or maximum amount to make a Pix?

There is no minimum limit for transactions with Pix. 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, will 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

 

Do you have any thoughts or questions about Pix? Let us know in the comment section below!

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Comments

  • Kent Larsen 13 de October de 2020

    Is it possible for citizens and residents of other countries to participate in PIX? Can I, a US citizen residing in the US, use PIX to make transactions with those in Brazil?

    • Paula Martins 16 de October de 2020

      Hi Kent,

      Initially, Pix will only be available for residents in Brazil, since the payment method requires a Brazilian bank or e-wallet account.

      However, online stores outside of Brazil that sell to the country will be able to offer Pix by hiring a service provider that processes payments with Pix, such as PagBrasil.

  • Kent Larsen 16 de October de 2020

    FWIW, I was hoping to make purchases FROM merchants in Brazil.

  • Miguel S Jr 19 de November de 2020

    In case of a theft. Suppose Joe kidnaps Dane and demands PIX transfers up to the limit of her money in account. Is there any protection against this – A.K.A. (so called) instant kidnapping? Many Thanks.