MED 2.0: the new Pix refund rules and what merchants should know

MED 2.0 is the new version of the Special Return Mechanism (MED) for Pix, Brazil's instant payment system: instead of freezing only the first account that received scam money, it traces the funds through other accounts and tries to recover the amount along the way. It has been mandatory for institutions since February 2, 2026 and, since September 1, anyone who received a Pix and had it refunded through the MED has 80 days, no longer 30, to contest that refund. Both changes affect merchants.

Why the central bank changed the MED

The MED is the set of rules for returning a Pix in cases of fraud or operational failure. In the original version, the freeze and refund applied only to the first receiving account. Since scam money is usually spread within minutes across several mule accounts, effectiveness was low: according to Banco Central do Brasil, an average of 9.3% of the contested amount was recovered in 2025.

How MED 2.0 works

According to the central bank's technical material, the flow is now:

1. Opening. The victim alerts their bank, which opens a funds recovery request in the DICT, the Pix directory, for transactions up to 80 days old.
2. Tracing. The DICT follows the transfers from the original transaction and selects the paths most likely to hold the diverted money.
3. Freeze and review. The institutions holding accounts on that path receive notifications, freeze the requested amount (or whatever balance exists) and have up to seven calendar days to accept or reject.
4. Refund. Once the review ends, the victim's bank has up to 72 hours to start the refunds, which the DICT processes in sequence.
5. Marking. Accounts with accepted notifications receive a fraud marking in the DICT.

Refunds are still not guaranteed: they depend on there being balance in the accounts reached.

The timeline so far

• August 28, 2025: MED 2.0 rules published.
• November 26, 2025: optional use by institutions.
• February 2, 2026: mandatory for all participants.
• May 11, 2026: production with expanded tracing, a date the central bank confirmed in August.
• September 1, 2026: the deadline to contest a refund made through the MED goes from 30 to 80 days, under Normative Instruction BCB No. 766.
• October 26, 2026 (scheduled): notifications between institutions start showing which tracing layer each transaction is in. The central bank said the adjustment has no effect for users.

What changes for sellers

Your balance can be frozen

If a customer opens an MED against a Pix paid to the store, the store's bank freezes the amount and reviews the case within seven days. Because tracing follows money leaving the accounts involved, a store that sold to someone using diverted funds can also receive a notification. The store's institution reviews it and may reject it.

You can contest an improper refund

If the buyer received the goods and opened an MED in bad faith, the store can contest the refund within 80 days of it. Any refund can be contested except those made for operational failure, and the reason must be suspected fraud by the payer. The store's bank assesses the merits and may open a funds recovery; if it does not and the fraud is confirmed, the recipient can open a dispute against its own institution under the Pix dispute rules.

Customers dispute from their own app

Institutions must offer, in the Pix area of their app, a feature for users to contest transactions due to scams or fraud. Disputes tend to arrive faster, including from customers who paid a swapped QR code and believe the store deceived them.

Merchant checklist

1. Know where freeze and refund notices arrive from your bank or payment provider, and who on the team follows them.
2. Keep evidence for every order: invoice, proof of delivery, customer conversations and the Pix transaction ID.
3. Track the deadline: 80 days from the refund to contest it.
4. Learn your bank's contest channel for recipients.
5. Tackle the root cause. When the QR is swapped on the store's page, the customer's MED targets the scammer's account, and the sale is lost anyway.

MED 2.0 improves the odds of recovering money after a scam, but it does not prevent the scam. See how the swap works on the Pix protection page.

Proteside acts before the MED: it checks, in the buyer's browser, that the QR and copy-and-paste codes displayed are the ones the store issued and blocks the swap before payment, alerting the merchant. It works with any platform and provider, and you can try it free for 14 days for online stores.