Cbn new rules on electronics transactions

The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has issued new rules on electronic transactions, specifically on the use of credit and debit cards, to enhance the security and integrity of electronic payments. Here are some of the key changes:

New Rules on Electronic Transactions

  1. Two-Factor Authentication: Merchants are required to implement two-factor authentication (2FA) for all electronic transactions, including credit and debit card transactions. This means that customers will need to provide a second form of verification, such as a PIN or a one-time password, in addition to their card information.
  2. Secure Sockets Layer (SSL) or Transport Layer Security (TLS): Merchants are required to use SSL or TLS encryption to protect customer data during transmission.
  3. Card Verification Value (CVV) and Card Security Code (CSC): Merchants are required to verify the CVV and CSC for all credit and debit card transactions.
  4. Transaction Limit: Merchants are required to set a daily transaction limit for each card, which must be approved by the cardholder.
  5. Cardholder Verification: Merchants are required to verify the cardholder's identity before completing the transaction.
  6. Transaction Record Keeping: Merchants are required to keep a record of all electronic transactions, including the date, time, amount, and card information.
  7. Data Encryption: Merchants are required to encrypt all card information, including card numbers, expiration dates, and security codes.
  8. Regular Security Audits: Merchants are required to conduct regular security audits to ensure that their systems are secure and compliant with the new rules.

Penalties for Non-Compliance

Merchants who fail to comply with the new rules may face penalties, including:

  1. Fines: The BSP may impose fines on merchants who fail to comply with the new rules.
  2. Suspension or Revocation of License: The BSP may suspend or revoke the license of merchants who fail to comply with the new rules.
  3. Legal Action: The BSP may take legal action against merchants who fail to comply with the new rules.

Effective Date

The new rules on electronic transactions took effect on January 1, 2020.

Purpose

The purpose of the new rules is to enhance the security and integrity of electronic transactions, protect cardholders' personal and financial information, and reduce the risk of fraud and identity theft.

Benefits

The new rules are expected to benefit cardholders by providing an additional layer of security and protection for their personal and financial information. The rules are also expected to benefit merchants by reducing the risk of fraud and identity theft, and by providing a more secure and reliable payment system.