The Supreme Court ruling of the past June 7, 171 pageswhich establishes a new regulation on payment methods, continues to generate public debate and analysis.
The Supreme Court issued new guidelines for brands in relationship with subacquirers. These rules include protecting the confidential information of Payment Service Providers (PSPs) and sub-acquirers, regulating interchange fees, and setting specific rules for brand costs. In addition, it was proposed to regulate other costs associated with brands.
This Monday afternoon, in a talk organized by Adolfo Ibáñez University (UAI), Falabella and Transbank established their position regarding the ruling. Currently, there are more than 9 million cardholders in Chile.
José Miguel Bellagamba, Transbank prosecutor, highlighted that the ruling highlights the intense competition in the acquisition and sub-acquisition market, something that was not reflected in previous rulings. “I would highlight one recital in particular, which is 123, which is when the Supreme Court openly says and recognizes, in its understanding, that Transbank or the acquirers in the background only control that commission to which Cristián (Reyes) was referring. which is called Merchant Discount, which is the commission that the acquirer charges each merchant when a cardholder uses the card, Transbank only controls the acquiring margin,” he added.
José Gabriel Carrasco, president of FinteChile, and Cristián Reyes, senior, also participated. counsel at Aninat Abogadoswho accused that the ruling came four years too late, although he highlighted that “it eliminates some aspects of uncertainty that were delaying the development of card payment methods, due to the regulatory vacuum that existed.”
In turn, Gonzalo Smith, corporate manager of legal affairs and governance at Falabella, highlighted that with the ruling, “for the first time, one of the most important operators in this market is reached, which are the card brands,” to despite the fact that there were already some regulatory recognitions in the Central Bank regulations.
“Now count on general transparency criterianon-discrimination, objectivity, generality and advertising, including brands, will have a very beneficial effect,” he stated.
Smith also mentioned that “openness to the market for all products is important.” “Today, our credit cards and our payment methods are all bank-based. People still talk about the CMR card as if it were a business card, which is no longer. Measured by current accounts and credit card placements, it is the main operator in Chile,” he added.
Asked about areas for improvement in regulation, Bellagamba explained that “there is a silo vision of the different projects that aim to democratize finance.” He added that, although the Third Chamber had to rule Regarding the facts submitted to its knowledge, the regulation of the industry should consider a broader vision.
“It is relevant to understand how these regulations will interact with payment initiation and the provision of information-based services. I would have liked a more fluid conversation between those two regulations and a little more emphasis from the Court regarding a normative recommendation. From my perspective, the companies that support the business, particularly those who are card operators“They should have greater freedom when carrying out activities,” he said.
“Commerce is dynamic, especially today, and even more so it will be with open finances. An always restrictive view will imply that we will be years behind in terms of regulation compared to what is happening in reality,” he added.
Bellagamba also said: “I would have liked a little more emphasis from the Court, regarding a regulatory recommendation, and here I speak from my pain, in which the Giro Support Societies and particularly those that are card operators could have greater freedom when doing activities. Commerce is dynamic, especially today and it will be even more so with open finance. A view that is too restrictive, we are always going to be years behind.”
Smith pointed out that a coordinated action by the administrative authorities would be desirable. “We have seen many authorities intervening from different angles, and we cannot forget that there are matters of commercial law, but we also have bodies such as the TDLC, CMF, FNE, Central Bank, the Committee that Sets the Limits of the Rates of Exchange and Sernac. Having five or six authorities regulating different aspects of the same phenomenon or business is problematic,” he explained.
