BI Bans Double Swiping in Non-Cash Transactions
Bank Indonesia bans double swiping in non-cash transactions. The card may, in each transaction, only be swiped once in the Electronic Data Capture (EDC) machine, and no other swipe, including in the cash register. The ban on double swiping aims to protect the public from data and card information theft.
Regulation concerning double swiping of non-cash cards is set forth in Bank Indonesia Regulation No. 18/40/PBI/2016 concerning Payment Transaction Processing. Article 34 point (b) provides that Bank Indonesia prohibits payment system service providers from misusing customer data and information as well as payment transaction data and information other than for the purpose of payment processing transactions. Included in the regulation is a ban on data collection through a cash register at the merchant.
One of the parties in the payment transaction process is an acquirer, which is a bank or institution that cooperates with merchants, who can process the data of the card payment instruments (APMK) issued by another party. To support the protection of the public data, an acquirer must ensure the merchant’s compliance with the banned double swiping. An acquirer is also expected to take tough measures, such as ceasing the cooperation with the merchants who still double swipe. For the purposes of payment transaction reconciliation, merchants and acquirers are expected to adopt another method without double swiping.
The public can also contribute to avoiding the double swiping practice by maintaining prudent non-cash transactions, and forbid merchants to double swipe. If the public finds or have experience the double swiping practice, the public can report it to Bank Indonesia Contact Center (BICARA) 131 (operational hours Monday to Friday 08.00 to 16.00 Western Indonesia Time (WIB), by referring to the merchant’s name and the managing bank’s name as seen from the EDC machine sticker.