Banks are changing the unregistered-boletos rules

Boletos are a form of unique and distinctive payment that is almost confined to Brazil. Most other countries do not even know what this payment method is, or even be compared with other modalities because they haven’t anything like it.

This type of payment has an increased risk of fraud attempts and unfortunately the security companies do not pay much attention to what is happening in Brazil, leaving decriminalized several crimes that are inherent in this country, including with this payment method. Local criminals are even strictly limiting the attacks on Brazilian IPs and installing their Trojans on computers operating in Portuguese in Brazil.

Brazilian cybercriminals are being very specialized on cybercrime scene, just like Russians and Chinese’s, where they attack on locals. It must be considered a priority to the security services and require a special effort to understand this type of crime.

The cybercriminals are sharing knowledge between each other, including criminals from Eastern Europe, exporting new technologies.

Unregistered Boletos vs. Registered Boletos

For several years, unregistered boletos have been the easiest way for online businesses in Brazil to collect payments.

While the registered boletos require that the bank issue a boleto with information about the buyer, the unregistered boleto makes that easier. This one offers flexibility, and if you want to you can regenerate a new boleto with new information, and it don’t have to interact with the issuing bank.

The end of Unregistered Boletos is coming?

The Brazilian Banking Federation, in February 2015, published a timeline for the changes of boletos platform in Brazil, it includes all the Brazilian banks, which will end effectively the possibility of using unregistered boletos.

As it was said, it must be end of new unregistered boleto account until June 2015 and end of life for all unregistered boleto account until December 2016.

And now? What is the alternative?

Beyond the advantage of giving a lot of flexibility, unregistered boletos give you another three important advantages. It is a widely recognized payment instrument that maintains the anonymously, even in non-financial institutions; it has an easily traceable reference that simplifies the reconciliation for the merchant; the overdue boletos can only be paid in the bank issuing the respective boleto.

The alternative passes about generate an invoice. The only disadvantage is that you cannot longer benefit from the advantages of the boleto system.

The future of Boletos is coming to an end?

It’s possible that with the end of unregistered boletos the lifetime of registered boletos is coming to an end. This was never intended to be an online payment method, although it gained popularity online.

For 10 years, merchants have incentivized consumers to pay with boletos by giving promotions and discounts. Thereby, credit cards are not a very attractive option for the merchants due to slow payout and high transactions costs. Online debit cards provide the same advantages as a registered boleto. It has low transaction costs, quick payout and no chargeback.

The use of debit cards in e-commerce is still very low, but it will be one way of combating the end of unregistered boletos.

Author: Team Fintech Brazil

Mapping Fintech Companies in Brazil

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