Electronic Fund Transfer Mechanism Now In Place

The Monetary Board, the governing body of the Bangko Sentral ng Pilipinas (BSP), has approved the standards for electronic fund transfers (EFTs) to preclude complaints from consumers.

The new regulation, Circular No. 1195, focuses on the timely resolution of customer concerns related to EFTs, aiming to build trust in digital payments under the National Retail Payment System (NRPS) framework.

The new regulation, Circular No. 1195, focuses on the timely resolution of customer concerns related to EFTs, aiming to build trust in digital payments under the National Retail Payment System (NRPS) framework.

The circular sets industry-wide expectations for banks and electronic money issuers (EMIs) participating in the InstaPay and PESONet Automated Clearing Houses (ACH), as well as clearing switch operators (CSOs) like BancNet, Inc. and the Philippine Clearing House Corporation. Key provisions include:

• Notification Requirements: The originating financial institution (OFI) must notify the sender about the status of EFTs and provide periodic updates until resolution. The receiving financial institution must inform the beneficiary upon successful crediting of funds.

• Turnaround Times: For InstaPay, funds must be returned to the sender’s account within one hour if not received by the beneficiary. For PESONet, the return period is within two hours from receipt of the clearing advice from the CSO.
  

• Common Language: ACH participants must use a common language in notifications to help customers understand the EFT status.

• 24x7 Customer Support: ACH participants and CSOs must ensure 24x7 customer support for erroneous and unauthorized transactions, adhering to BSP Circular No. 1160 on Financial Consumer Protection.
  

The circular allows a transitory period until January 1, 2025, for full compliance. Currently, there are 86 InstaPay and 112 PESONet participants.