FAQ

Transbank is an ecosystem of technological solutions for business development through face-to-face and remote payment platforms. Covering the needs of businesses and individuals, our platforms prioritize security and continuous innovation in harmony with technological advancements.

Through Transbank, merchants have the opportunity to grow their sales by offering customers a secure, reliable digital payment channel. Our platforms seamlessly integrate different channels to process credit, debit, and prepaid card purchases.

We offer diverse solutions to each Chilean business, including Webpay, payment links, QR Collections, and an extensive range of POS devices. Transbank extends technological solutions for online payments, catering to various business segments, from entrepreneurs and SMEs (small and medium-sized enterprises) to corporations. Additionally, we introduce new technologies and value-added services to optimize digitalization and fortify business growth.

With over 30 years of pioneering technology, we serve over 250.000 clients, including Fintechs, facilitating over 9 million real-time transactions daily.

The four-party model represents a payment system where issuers and acquirers function independently, connecting through international card brands. The key players in this model include:

• Acquirer: Authorized to onboard merchants to a payment card network and execute all tasks related to facilitating payments to these affiliated merchants. These companies, like Transbank in Chile, hold licenses from international card brands and often possess their own processing network.
• Issuer: Responsible for issuing credit, debit, or prepaid cards used by customers. Issuers can be banks, cooperatives, or retail companies.
• Merchant: An establishment offering products or services, accepting credit, debit, or prepaid card payments.
• Cardholder: The individual using a card at a merchant to make purchases.

Chile transitioned to the four-party model on April 1, 2020.

Migration from the Three-Party to the Four-Party Model:

In April 2020, the industry went through a significant transformation process, moving from a three-party to a four-party model. Following the termination of the operating agreement and card operation mandate between Transbank and issuers, Transbank secured its own licenses to operate as an acquirer with Visa, Mastercard, and American Express. Unlike the previous model, the current framework involves setting an interchange rate through commission, determining compensation between the acquirer and the issuer. Additionally, card brands now retain a portion of the cash flows.

The Merchant Discount Rate is the transaction fee imposed on merchants for utilizing electronic card payment methods. MDR encompasses three key components:

• Acquirer’s Margin (AM): This is the fee set by Transbank and represents the only component of the MDR determined by Transbank.
• Brand Cost (BC): Each card brand charges a fee per transaction, and this cost is independently set by each brand.
• Interchange Rate (IR): The compensation issuers receive for each transaction, and each card brand establishes its interchange rates.

• Chilean Central Bank: Regulates national economic policy and establishes the regulatory framework for payment card operators.
• Financial Market Commission (CMF): Supervises and regulates Transbank as both a banking support company and a payment card operator.
• National Economic Prosecutor's Office (FNE): Monitors economic activities to prevent anticompetitive practices, protects consumers, and ensures a level playing field for businesses and fair competition.
• Fair Competition Defense Court (TDLC): A specialized court responsible for resolving conflicts arising from the free competition framework across various markets.

For investor relations inquiries, please reach out via email to: investors@transbank.cl