Last year, a new regulation by the Central Bank of Brazil came into place, affecting marketplaces. It is a compulsory requirement under this regulation that all transaction settlements are centralized. The Interbank Payment Clearinghouse (Câmara Interbancária de Pagamentos – CIP) is the system responsible for centralizing all transaction settlements. Businesses working with split payouts, such as marketplaces, must implement changes to their internal processes, as well as technical setup, in order to be compliant with central liquidation via the CIP.
Who is Required to Comply with Central Liquidation Via the CIP?
Payment schemes, issuers, acquirers, sub-acquirers and other payment institutions must comply with the regulation that requires centralized transaction settlements. As per Central Bank of Brazil understanding, marketplaces that receive payments from buyers and carry out split payouts to sellers are acting as sub-acquirers and are, therefore, subject to the regulation.
At the moment, the obligation applies only in the following cases:
- Marketplaces processing over BRL 500 million in credit and debit card transactions during a 12-month window.
- Marketplaces processing more than 25 million transactions with credit and debit cards during a 12-month window.
However, marketplaces that do not exceed such volumes must still comply with requirements from each card label and sign commercial agreements with each of them. That is unless they decide to contract a “splitter,” the term used by the Central Bank of Brazil to designate payment facilitators who can provide split payouts on behalf of their marketplace clients.
Why Should Marketplaces Consider Contracting a “Splitter”?
Marketplaces that opt to work with a payment partner who can provide split payouts for their businesses do not need to worry about having to adapt their technical setup to be compliant with the regulation. In addition, they benefit from having to sign only one commercial agreement and not having to negotiate individually with each card label. This means less hassle for marketplace owners, who can also avoid significant costs by not having to adapt their businesses processes to be compliant.
PagBrasil offers a split payout solution for marketplaces that is fully compatible with the new regulation. Thanks to API integration, marketplace owners have full control and can flexibly define the entire payout process. PagBrasil’s solution can be completely integrated into their backend or platform, and the marketplace simply needs to send via API the amount to be transferred to each payee.
It is also worth highlighting that the system gives marketplace owners a full reconciliation report so that they can have total control of the money collected and paid, which is essential to facilitating businesses’ accounting processes. In addition, PagBrasil’s secure split payout solution comes with a payee validation process that is fully compliant with current anti-money laundering legislation and regulations.