Central bank approves framework for merchant payment acceptance

THE BANGKO SENTRAL ng Pilipinas (BSP) has approved a regulatory framework for merchant payment acceptance activities to protect both customers and merchants from risks.

“The Bangko Sentral recognizes that enabling merchants to accept different forms of payments for the sale of goods and/or services in a safe and efficient manner is vital in facilitating the smooth flow of funds in the economy and contribution to the wide adoption of digital payments in the country,” it said in a circular.

The Monetary Board approved the framework in a resolution dated July

11. New sections will be added to the Manual of Regulations for Payment Systems.

Under the circular, merchant payment acceptance activities (MPAA) are defined as the set of services provided to a merchant to receive payment for sale of goods and/or services.

“In general, services include merchant acquisition; providing the means to accept various payment instruments and collect, secure, transmit and process payment information; and providing support services related to the payment,” it added.

Operators of payment systems (OPS) engaged in or planning to engage in MPAA are expected to comply with the requirements of the framework and must also observe governance and risk management measures commensurate to the activities they perform, according to the circular.

“For digital payments to thrive, minimum standards and good practices must be established to safeguard the funds received from customers of merchants; and protect the rights and interests of end users (i.e., merchants) that deal with operators of payment systems that engage in MPAA.”—