On February 17, the Central Bank of Brazil’s receivable registration rule (Circular No 3,952 and Resolution No 4,734) becomes effective in Brazil. What will change in the receivables market – and how can this affect Brazilian ecommerce businesses?
What changes with the rule?
A receivable is an amount that merchants will receive on a future date for their credit and debit card sales. In Brazil, merchants receive their payments from acquirers within 30 days; in addition, credit card installment payments are released by acquirers monthly, as the installments are paid.
These future credits will now become available on a credit receivable registrar. Merchants will be able to apply for loans from a financial institution guaranteed by specific future payments. The receivables will then be owned by the institution that conceded the loan, as a guarantee for the advanced payment to the merchant. This way, unlike the present scenario, merchants will not have their entire future payments agenda blocked as a loan guarantee, but only the specific receivable amount that will be paid in a certain period of time.
This new scenario will enable competition among financial institutions that anticipate future card payments, as merchants will be able to sell receivables from a different period of time to various banks.
Who needs to adapt?
Financial institutions in Brazil that anticipate credit, as well as acquirers, sub-acquires and marketplaces, that process credit card payments for merchants, must comply with the new regulation.
Further, the Central Bank of Brazil has also informed that financial institutions that do not adapt to the norm will be forbidden to operate with credit cards. Financial institutions, acquirers, sub-acquirers, must obtain their homologation certificates from receivable registration organizations such as CIP, CERC, and Tag.
PagBrasil completes certification ahead of schedule
In December 2020, PagBrasil completed the certification with CERC, the first credit receivable registrar authorized by the Central Bank of Brazil. “We are one of the first payment processors ready and certified before the deadline!”, reveals Alex Hoffmann, CEO and cofounder of PagBrasil.