Easy recovery of erroneous funds transfers

In a continued commitment to protect consumers of payment services, foster trust in the use of payment accounts and facilitate instant transfers in real time, the Central Bank of the CEMAC Member States (Cameroon, Chad, Equatorial Guinea, Gabon, Central African Republic and Republic of Congo) recently published a circular letter describing the process of recovering funds transferred in error through payment service providers. payment. (PSP) in the CEMAC zone.

This circular letter introduces additional responsibilities for payment service providers, aiming to simplify the previously complex procedure of requesting the return of funds sent to the wrong recipient, whether by mistake or not.

Previously, the process for recovering funds transferred in error required the sender to report the issue to the payment service provider in order to freeze the account and then obtain a court order before the frozen funds could be released. This often left the wrong recipient with the opportunity to quickly withdraw monies transferred in error, leaving the sender with no immediate recourse.

The circular letter introduces an innovative approach to reporting erroneous or fraudulent transactions and establishes a more efficient out-of-court procedure for recovering funds. This update aims to strengthen consumer protection, build trust in payment services and ensure the irrevocability of instant payment orders within the CEMAC zone.

I- New obligations for payment service providers

1. Telephone payment service providers must create a dedicated menu on their USSD system or mobile applications to request the return of funds transferred to an unwanted recipient.

2. Telephone payment service providers must refrain from releasing the amounts credited to the recipient’s account until five (5) minutes after notification of the credit.

II- Restitution procedure

1. Initiate the restitution request

2. Freeze and inform

Upon receipt of the restitution request, the telephone payment service provider and the account holder of the unwitting recipient must immediately freeze, immobilize and make unavailable the disputed funds. They must also inform the sender of the restitution request.

3. Acceptance of restitution

• If the involuntary recipient accepts the restitution request, the request becomes a payment order, which the telephony payment service provider of the involuntary recipient must execute promptly.

• The absence of a response within 24 hours (transfers and merchant payments) or 48 hours (other transfers) constitutes acceptance and triggers the return of funds to the originator/requester.

4. Dispute Resolution

In the event of a dispute, the funds remain frozen and the sender can take legal action. Notification of refusal to return funds serves as proof or supporting documentation for possible legal action.

Support for payment service providers

Our team can assist payment service providers in reviewing and amending their cardholder agreement and merchant agreement/acceptance terms and conditions for their payment cards or e-wallets to incorporate the process of requesting the return of funds transferred in error.