Pix logo by Central Bank

PIX new instant payments system

Pix goes live on November 16th and it is now possible to make immediate transfers via mobile. However created by BCB Pix arrives to facilitate the way we deal with money.

Pix promises to revolutionize banks by competing with credit card as a form of payment. In addition, Pix comes to be the virtual money where it will replace paper.

How does PIX work?

As previously stated, the BCB created Pix to facilitate the way people and companies exchange money. In this sense, to use it, just enter all account data as it already works with TED or register a PIX key.

However, you do not need to register with the Brazilian central bank to use the banks that will be responsible for registering in the BCB. The System works 24 hours a day and anyone, whether commercial establishments, individuals or government agencies can use it.

What is PIX Key?

The Key is a nickname that can be used in place of traditional data (full name, bank, branch, account and CPF and CNPJ) when making a bank transaction. In this sense, instead of needing all this data with just one piece of information, it is possible to make transfers.

However, to register a key, just open the bank app, go to the pix menu and then choose which key you want to use. However, it is possible to register up to 5 keys for individuals and 20 keys for legal entities.

You can register up to 4 different keys:

  1. Email
  2. CPF or CNPJ
  3. Telephone
  4. random numeric key

The keys (Email, CPF or CPNJ and Telephone) they can only belong to 1 bank, however, if you need to use the key in another bank, it will be necessary to carry out a key portability.

Pix is free

It is free for individuals and MEI (Individual Micro Entrepreneur) but is paid when the purpose of the transaction is commercial. However, some banks do not charge transaction fees in any case.

After all, is it safe?

In theory, the pix technology is safe because there is a dedicated connection network between the BC and PSPs (Payment Service Providers). In addition, the issuing bank digitally signs all communications made on the pix and sends them on an encrypted channel through TLS with two-way authentication.

However, there is also the DICT (Directory of Transactional Account Identifiers) which is an anti-fraud mechanism that informs the PSP information regarding the PIX keys.

The protocols are strict and very secure but the biggest weakness is in the PSP because they are the weak point of the system. Therefore, fraud can occur in scams caused by malicious codes installed in banks and the like.

Smartphone image with pix logo
Instant transfer smartphone image

The central bank is studying new technologies to be used by banks in Brazil as well as the open banking which allows banks to open customer data to third parties with their authorization. Thus, the BCB opened a public consultation to facilitate transfer abroad.

What is PIX?

It is an instant payment system created by the Central Bank of Brazil.

How does PIX work?

It works 24 hours a day, just go to the PIX menu on your smartphone and enter all recipient account data in the same way it works with TED and DOC.

How much does Pix cost?

Pix is free for individuals, however for legal entities it may be charged.

What is PIX Key?

The Key is a nickname that can be used in place of traditional data (full name, bank, branch, account and CPF and CNPJ) when making a bank transaction

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