Brazil’s largest payments processor Cielo is working to convince retail chains to increase the acceptance of debit cards in online purchases. The measure comes as an effort of Cielo to take part in the flow of emergency funds released by the government to face the pandemic. The information is from news agency Reuters.
“Out of about 55 million people who will receive the benefit, nearly 30 million are not bank account holders,” Cielo’s chief executive, Paulo Caffarelli told Reuters. “Although they do not have a bank account, many know how to shop online.” Those getting the emergency assistance, will receive it through a virtual debit card generated by Caixa Econômica Federal, which can be used for purchases.
In Brazil, most retailers only accept credit cards for payment on online purchases, claiming security issues for not accepting debit, such as the difficulty to certify that the buyer is really the owner of the card, which opens up more possibilities for fraud. Payment companies, however, have been creating additional security tools to prevent the loss of transactions by people who do not have a credit card.