Monetary Council of Ecuador Requires Money Transactions at the View of the Customer
The Monetary Board of Ecuador has implemented a new resolution that requires that customers witness the entire credit card payment process in businesses. This regulation is established so that all transactions made with credit cards, debit cards, prepayment cards and electronic invoices must be transferred to the customer's line of sight, as established in the resolution published on September 4, 2024.
In accordance with the fifth general provision of the resolution, payment terminals (POS) must be positioned so that customers can clearly see the insertion, movement or examination of their cards. This move seeks to increase transparency during financial transactions and protect consumers from possible fraud.
In addition, the resolution established that the establishment staff loaded by colleagues must not manipulate the card or electronic card outside the customer's field of vision at any time during the payment process. This measure is designed to prevent unauthorized access to sensitive payment information.
The Monetary Board is committed to ensuring that participants in the Auxiliary Payment System — financial institutions and auxiliary entities that operate with electronic means of payment — must educate their business customers on good security practices related to these payment methods. This initiative seeks to strengthen consumer protection and ensure that companies are committed to these new standards.
Tatiana Rodríguez, president of the Monetary Council, highlighted the importance of this resolution on her LinkedIn account, calling on the public to respect these rights to avoid being victims of fraudulent activities involving credit, debit and prepayment card data. The new regulations reflect a compromise to increase consumer confidence in electronic payment systems and meet the need for good security practices in the minority environment.
Overall, this regulation represents a significant change in the way electronic payments are handled in Ecuador, prioritizing consumer awareness and security. Businesses will need to adapt quickly to these changes, ensuring that payment processes are in line with the new requirements.
