PIX refund mechanism causes losses to lottery outlets and betting platforms due to chargeback fraud.
Lottery business owners reported to BNLData frauds related to the Special Return Mechanism (MED) of PIX, mandatory for financial institutions since February 2, 2026. The system, created by the Central Bank to combat fraud, is being misused by people who carry out transactions and then dispute them.
MED was developed specifically for cases of scams, fraud, or technical failures, allowing victims to request a refund of improperly transferred funds. The mechanism analyzes the request within 7 days and can return the amount within 96 hours, provided there is still a balance available in the recipient's account.
Since PIX transactions account for over half of all transactions at lottery outlets, malicious individuals visit these establishments, make purchases and financial transactions, and then later dispute the transactions.
“The problem is serious, and Caixa [the bank] is aware of it. To be very clear, I don't think the problem is even Caixa's, but rather the Central Bank's, which created this mechanism and is causing a great deal of disruption for retail in general, especially for the lottery sector, which handles many transactions,” a lottery business owner told BNLData.
How the scam works
The scheme follows an identifiable pattern. "The scammers or malicious individuals are arriving at the lottery shop, taking a group bet of R$1 or R$2, making a deposit, a PIX withdrawal, depositing it into that account, and then reversing the transaction," explained the businessman.
In Mogi das Cruzes, a lottery shop suffered a chargeback of R$ 18 without explanation. The establishment faced a block on PIX transactions from other institutions for a week during the investigation.
“It’s happening at the lottery agency, and the Central Bank is blocking Caixa Econômica Federal (a Brazilian bank), at the behest of the Central Bank, blocking the lottery agency for a week until the case is investigated. But there are cases like the R$18 in Mogi das Cruzes, where a week has already passed and no one knows why, there’s no information. Caixa Econômica Federal, again at the behest of the Central Bank, went there and withdrew R$18, reversing a payment that the lottery agency had made for services that, in turn, were done at the client’s request. This client contested it, it was reversed, but without any explanation, without any details, everyone is in the dark,” he stated.
Extended deadline for objections.
Representatives from the sector have already met with GERLO to address the problem. It was even pointed out that the scammer, in theory, does not make the payment and still maintains paid accounts with platforms such as Mercado Pago, Mercado Livre, among others, causing direct losses to the lottery unit.
CAIXA has stated that it will conduct an internal analysis, as well as checks with the Central Bank, and has committed to providing feedback on the matter.
According to the rule, customers have up to 80 days to dispute payments, and this timeframe for disputes is part of the official MED protocol, which makes it difficult for businesses to defend themselves. It is important to emphasize that the mechanism was not designed to cover cases of buyer's remorse or typing errors, but rather specific situations of fraud.
"It's causing real despair in the lottery network, because it was discussed in meetings that the customer has up to 80 days to contest this payment, and it's leaving the network in a panic," he commented.
To mitigate the risk, operational limitations are already being adopted in the use of PIX in some locations.
Impact on retail and betting sector
The problem affects various business sectors. The betting industry faces additional vulnerability, as bettors who have not won prizes may attempt to recover money through chargebacks.
One of the main difficulties faced by businesses is that MED does not cover situations of commercial disagreement, such as when a product or service has been paid for but not delivered or is defective. Unlike credit cards, PIX does not have the same chargeback protection for these cases.
“This type of action is affecting retail as a whole. It's happening in the market, in the butcher shop, in retail in general. Imagine a customer bet R$ 1, didn't win anything, and then goes and cancels the bet.”
BNLData has received reports from bettors who are reversing payments made via PIX after losing, alleging fraud. Sports betting and online gaming platforms are also suffering losses.
Consequences for businesses
When a chargeback occurs, the amount is debited from the establishment, but the previous transaction is not canceled. Caixa Econômica Federal (CEF) debits lottery outlets' accounts without providing detailed explanations.
The main obstacle for businesses is that many scammers withdraw the money immediately after receiving it, which prevents the MED (Brazilian government's emergency funds system) from effectively blocking and returning the funds. It's worth noting that, according to the Penal Code (article 169), anyone who appropriates money received by mistake can commit the crime of misappropriation.
In addition to the financial impact, lottery outlets are facing a temporary suspension of their ability to receive PIX payments from other institutions, limiting their operations during the lockdown, which could last more than a week.
