São Paulo Consumer Protection wants Brazil’s Central Bank to limit Pix transactions to R$500 (US$96)

RIO DE JANEIRO, BRAZIL – Procon-SP’s executive director Fernando Capez, on Wednesday, September 15, met with Central Bank representatives to discuss fraud on Pix.

The agency’s proposal is that the Central Bank should determine a maximum amount to be spent by most users of the tool and limit transactions to R$500 (US$96) until there are enough security features in place.

He recalled that, according to the Consumer Protection Code, it is the supplier’s duty to pay for any losses arising from the service provided.

The director also proposed the option of chargebacks of transactions made to newly opened bank accounts. “When new accounts are opened, for at least 30 days, the chargeback and blocking of transactions should be allowed until it is confirmed that this is a legitimate client and not a scam,” he says.

From January through August this year, 2,500 Pix-related complaints were registered at Procon-SP. The main issues were refund/return of values; no answer/solution from the Customer Service Center; unrecognized purchase/sale; non-contracted product or service; and misleading sales.

Before the meeting with the Central Bank yesterday, Capez argued for Pix to be pulled down. “This has greatly encouraged criminality, such as express kidnappings. And we have cases of companies that lost over R$100 million with Pix scams.” He said that if Pix were to be suspended for some time until new security features are in place, he would see no issue with it.

“It is the Central Bank that will provide the parameters, considering the financial economic consequences. We advocate dialogue, we don’t need to resort to extreme measures, but we understand that the service being provided has flaws that expose consumers to risk.”