Colombia: Users Will Need to Register For Online Debit Transactions

The rules for when paying with a debit card are changing in Colombia.

From March 17^th, everyone who uses a debit card to make a transaction over the internet will have to ensure that they have completed an advanced registration.

Currently, debit card users making an internet purchase use Botón PSE (secure payments online) and get directed to a page of their bank to complete the transaction.

Now, the new step, a completed registration form, will act as an additional safety filter and will, say the authorities, provide greater protection for virtual transactions.

The registration process includes card holders providing basic personal information, including ID and mobile number, and email address. The user need only register once.

The president of ACH Colombia, the company that manages the Botón PSE payment, Gustavo Vega, says that the new process will be a more detailed study of the users’ transactional habits. It will allow unusual habits to be identified and preventative actions taken. Vega also stressed that this is not a customer authentication system, but a register which helps check fundamental facts of a non-financial nature.

First created in 2004, Botón PSE was originally the idea of the Government, but was developed by the banks themselves. It has been credited with growing electronic commerce throughout the country. Some 130,000 PSE transactions are made every day in the country, which represents roughly 13% of all electronic transactions. This represented around 31million transactions in 2015, a figure which is likely to grow by some 30% in 2016.

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Reference: Dinero

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