Chile: Coordinate Cards Phased Out – What Users Need to Know
- Chilean banks are phasing out decades-old coordinate cards, a security measure used to authorize financial transactions, in favor of more robust digital authentication methods.
- The move to eliminate coordinate cards, which require a numerical code from a physical card to authorize transactions, was initially slated for August 1, 2025.
- Despite the extended deadline, Banco Santander has announced it will discontinue the use of coordinate cards for transactions starting March 9, 2026.
Chilean banks are phasing out decades-old coordinate cards, a security measure used to authorize financial transactions, in favor of more robust digital authentication methods. While the deadline set by the Comisión para el Mercado Financiero (CMF), Chile’s financial market commission, remains in place for many institutions, some banks are accelerating the transition, leaving some customers, particularly older adults, facing challenges.
The move to eliminate coordinate cards, which require a numerical code from a physical card to authorize transactions, was initially slated for . However, concerns about the impact on vulnerable populations prompted the CMF to delay the implementation by a year. The commission cited the need to facilitate a smoother transition towards more secure authentication protocols and mitigate fraud risks.
Banks Accelerate the Shift
Despite the extended deadline, Banco Santander has announced it will discontinue the use of coordinate cards for transactions starting . BancoEstado began phasing out the cards for new users in , and expanded the discontinuation to additional customers starting , directing them to activate BE Pass – a key-based system – or BE Face, which utilizes facial recognition technology. Banco de Chile, however, intends to adhere to the CMF’s deadline.
The shift is driven by a broader effort to address evolving cybersecurity threats and reduce fraud. The CMF is also mandating the implementation of Reinforced Customer Authentication (RCA) for certain transactions beginning this August. RCA requires users to employ at least two independent authentication factors, falling into categories of something the user knows (like a PIN), something the user possesses (like a mobile device or payment card), and something the user *is* (biometric data like fingerprints or facial scans).
Concerns Over Digital Literacy
The transition isn’t without its critics. Concerns have been raised about the potential impact on individuals with limited digital literacy, particularly older adults who have long relied on coordinate cards for their banking needs. “A bit of a pain for older adults to use apps for payments. The card was useful for doing it remotely,” one individual commented, as reported by BioBioChile.
Some customers express frustration with the speed of the change and their ability to adapt. “I had already cancelled [the card] the first time they said it would end,” one person noted. “I have that problem, that I’m ‘digitally ignorant’,” another lamented. These sentiments highlight the challenges of transitioning a population accustomed to a traditional security method to more technologically advanced alternatives.
What is Reinforced Customer Authentication?
The implementation of RCA is a key component of the CMF’s updated security standards. This process requires users to verify their identity through multiple factors. These factors include something the user knows – such as a password or PIN; something the user possesses – like a mobile device, token, or payment card; and something the user *is* – biometric data like fingerprints or facial recognition.
Beginning in August, RCA will be mandatory for electronic fund transfers, including modifications to existing transactions like updating recipient information or setting up recurring payments. For example, a bank’s application might require a standard security code, followed by a one-time code sent via text message, a fingerprint scan, or facial recognition to authorize a transfer of 25,000 Chilean pesos.
RCA will also be required when opening a new bank account, changing personal information, or modifying security devices. The CMF emphasizes that these measures are designed to enhance security and protect customers from fraud in an increasingly digital financial landscape.
The CMF stated that the changes aim to “facilitate the transition towards more robust authentication mechanisms, which contribute to mitigating the risk of fraud for those population segments most intensive in the use of these printed means for their transactions.” The move reflects a global trend towards stronger digital security protocols in the financial sector, balancing the need for enhanced protection against the challenges of ensuring accessibility for all users.