BSP sets new standards for merchant payment acceptance

The Bangko Sentral ng Pilipinas (BSP) has issued Circular No. 1198, establishing a new regulatory framework for Merchant Payment Acceptance Activities (MPAA), aiming to protect consumer funds and merchant rights in digital transactions.

The regulation, introduced on July 19, 2024, mandates operators of payment systems (OPS) involved in MPAA to comply with strict governance and risk management practices.

With merchant payments representing 64.9 percent of digital transactions last year, it’s critical that these operations adhere to stringent standards to safeguard the ecosystem, a BSP statement said.

The framework includes measures to manage risks related to settlement, IT systems, anti-money laundering, and end-user protection.

OPS engaged in merchant acquisition must now secure a license from the BSP, while those involved in other MPAA services must register according to existing payment regulations.

Non-compliance may result in enforcement actions under national payment laws.

The Payments Supervision and Licensing Department will oversee the implementation of these new rules, aiming to bolster confidence in the nation’s digital payment systems.