THE central bank said it is set to establish, implement, and maintain a centralized National QR Code Merchant Database that will store all merchant information to ensure reliability of QR-enabled payment services in the country.
In a proposed circular, the Bangko Sentral ng Pilipinas (BSP) indicated that the Monetary Board is set to approve amendments to the ‘Manual of Regulations for Payment Systems’ (Morps) ‘consistent with the objectives of ensuring the safety, efficiency, security and reliability, and integrity of the national payment system.’
‘BSP-supervised institutions (BSIs), including operators of payment systems (OPS) and payment service providers (PSPs), and other relevant participants in the national payment system shall establish and maintain risk-based controls that provide sufficient, accurate, current, and timely visibility over the persons, merchants, intermediaries, accounts, payment channels, transactions, and settlement flows involved in payment activity, commensurate with their respective roles,’ the central bank said in the draft circular.
Among the amendments to the Morps is the creation of the National QR Code Merchant Database, ‘containing information on merchants that accept payments through the National QR Code Standard.’
‘As warranted, the functions of establishing, implementing, and maintaining a centralized National QR Code Merchant Database may be delegated to the payment system management body (PSMB),’ the central bank also noted.
The proposed circular noted that the BSP or the PSMB may engage or designate a ‘qualified’ third party to perform, in whole or in part, the operational, technical, and administrative functions relating to the database.
Trusted repository
THE central bank explained that the database shall serve as a ‘trusted repository’ of merchant information to support merchant identification and verification, strengthen fraud prevention and detection measures, facilitate interoperability among participating PSPs, and promote the safety, efficiency, and reliability of QR-enabled payment services.
With this, the BSP said payment service providers that onboard, sponsor, or maintain merchant accounts for participation in the National QR Code ecosystem shall submit, maintain, and update merchant information in accordance with standards, procedures, and timelines prescribed by the central bank.
‘PSPs shall ensure that merchant information submitted to the database is accurate, complete, and kept current at all times,’ the BSP said.
Database info
THE central bank revealed that at least 14 nodes of information are required to be stored in the National QR Code Merchant Database.
These nodes include unique merchant identifier assigned in accordance with the National QR Code Standard, registered business name and trade name, where applicable; merchant category code (MCC) or business classification and business registration details, among others.
The BSP shaid it shall approve the governance framework, data dictionary, access categories, update deadlines, retention period, correction and dispute process, cybersecurity standards, business continuity requirements, and supervisory-access arrangements of the database.