BB sets strict timelines for Bangla QR payment dispute resolution

Bangladesh Bank (BB) has issued fresh guidelines mandating banks, mobile financial service (MFS) providers and payment service providers to resolve customer disputes over Bangla QR merchant payments within fixed timeframes, in a move aimed at boosting confidence in the country's digital payment ecosystem.

The central bank today issued a guideline on Dispute Resolution for Bangla QR (Merchant Payment) Transactions, which will be effective from December 1 this year.

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Under the new framework, if a customer's account is debited but the transaction conclusively fails — meaning the merchant never received the money — the issuing bank or MFS provider must automatically reverse the amount without requiring the customer to file a complaint, in real time or within 30 minutes at most.

For disputes that cannot be resolved automatically, customers can lodge complaints within 45 days of a transaction. The issuer must accept or reject the claim within two working days, failing which the case moves into a formal chargeback process managed through NPSB's centralised Dispute Management System (DMS).

Acquiring institutions get seven days to respond to a chargeback, and unresolved cases can proceed to arbitration, which must conclude within 30 days.

The guidelines introduce eight standardised chargeback reason codes, covering issues such as goods not received, duplicate payments, incorrect billing and merchants not being credited despite a customer's account being debited — to streamline claims processing across institutions.

A new Transaction Status Inquiry (TSI) mechanism will also let issuers instantly verify payment status with acquiring institutions when a transaction outcome is unclear, reducing dependence on manual dispute filing.

Separately, merchants seeking refunds will get 60 days to initiate requests, with acquirers required to respond within two working days.

On fraud, the guidelines set a 30-day window to investigate suspected unauthorised or fraudulent transactions.

Customers must be reimbursed within three business days once an institution's system failure or security lapse is established, though claims can be rejected if evidence shows customer negligence or misconduct.

Notably, any institution that fails to furnish transaction evidence during a dispute will be liable for the disputed amount and may face a penalty of up to the same amount.

Bangladesh Bank has also warned of supervisory action against banks, MFS and other payment service providers that miss timelines or unjustifiably reject claims, as it pushes to make Bangla QR a trusted alternative to cash across the country.