Since November 16th 2020, PIX, the new payment system of the Central Bank of Brazil, has been operating, changing the way we make payments and transfers. But is PIX completely reliable? How can we be sure that accounts and transfers are safe with the new online payment system, and available 24x7?
In this text, we will discuss what it is, how PIX works, and what is the system's safety level that, according to experts, should replace traditional bank transfers methods, and even debit cards.
PIX is a payment and transfer system that offers transactions being paid within 10 seconds, 24 hours a day, seven days a week. It means that, with PIX, there are no more business hours or business days for bank transactions.
For legal entities, payments to suppliers occurring on weekends or new methods of providing services, such as WePayOut, which offers solutions for companies that must process a high volume of payments to third parties.
How it works
The person registers a code associated to its’s bank account tax number, e-mail address or mobile number, which is a PIX key. When entering the key, funds are transferred to the beneficiary's account, without the need to enter the bank account and branch data or inform the bank.
For companies, the same principle applies. The difference is that businesses can register 20 PIX keys per account (for individuals, it is five per account). This transfer code, or alias/key, can be your mobile phone number, Corporate Taxpayer ID (CNPJ), or any other key you define, if not repeated, so as not to confuse the recipient account of the transfer.
The payment is still possible to a bank account even if one does not know if the beneficiary has a registered key or not.
The protection against risks
Naturally, a new payment system can cause uncertainty for people and businesses, especially when it comes to the safety of transactions. Among the main concerns is the protection against criminals who could take the identity of the consumer using PIX to receive and send funds, or even intercept the information of these transactions to obtain the accounts' data.
Against this practice, the Central Bank has demanded that financial institutions use authentication models (biometrics, facial recognition, or code), in the same way as for other payment methods such as traditional bank transfers.
These payment institutions create their safety systems to ensure that operations are taking place with the authorization of the parties. In the case of WePayOut, a 24x7 monitoring system was developed to provide safety for companies that hired the mass payment product. The system ensures that the funds will be routed to the right beneficiary, are not duplicated, among other features.
Besides uncomplicated actions, already practiced in other payment systems, some safety measures are used exclusively for PIX. One of them is the anti-fraud engines, operated by the financial institutions that offer the service. These engines prevent unusual transactions, for example, with values above those practiced by the user. These transfers are withheld for 30 minutes for analysis (during the night, it is 60 minutes). If they are not confirmed, the transactions are canceled.
PIX possesses, in its database, protective mechanisms that prevent complete exclusion of information, besides the fraud markers, in which the transaction and the fraudster are marked, in suspicions or confirmed cases of fraud, and identified by all the financial institutions participating in the system.
WePayOut has developed a unique 24x7 payment monitoring system that, in line with anti-fraud systems aimed at receiving funds, is focused on the payment of funds. This system ensures that payments are not duplicated or made to incorrect beneficiaries, performing the cross-checking of recipients' bank data, key, and Taxpayer Registration number.
Innovation and safety
PIX is a payment model that promises to make life much easier for those who pay, issue dunning notices, or receive payments. With the convenience of 24x7 instant payments, the system should replace traditional bank transfer methods.
Despite the doubts surrounding the new payment format, PIX offers protection to users through a two-stage check, transfer encryption, and fraud analysis. It is for consumers and entrepreneurs to manage their data and PIX keys well to ensure a safe and smooth movement.
Fintech companies offering product-related services must have their safety systems to ensure their transaction integrity. New payment systems must receive the utmost care.
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