Financial Regulator Issues Resolution on Card Fraud Insurance for Issuers

On November 6, 2026, Ecuador's Junta de Política y Regulación Financiera y Monetaria issued Resolution JPRFM-2026-048-T. The regulation establishes new obligations for credit and debit card issuers and reinforces payment card security measures across the country's banking sector.

Under the resolution, banks and other issuers of credit and debit cards in Ecuador are permitted to contract insurance policies against fraud or scams. These policies allow institutions to cover values they must reimburse to customers following fraudulent transactions. If a financial institution contracts a policy, it may use the coverage to absorb corresponding losses when fraud occurs.

However, the contracting of fraud insurance remains voluntary for financial entities rather than mandatory. Furthermore, the regulatory disposition explicitly prohibits institutions from passing the cost of these insurance policies onto their customers, requiring issuers to absorb the expenses directly.

What to watch

• Implementation of the voluntary fraud insurance framework by Ecuadorian banks and card issuers.
• Regulatory compliance regarding the prohibition of transferring insurance costs to cardholders.

Sources: primicias.ec.

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