This week, the Brazilian Central Bank (BACEN) discontinued DOC (Documento de Crédito), a payment method introduced in 1985 in response to the overwhelming success of PIX. Here are some key points about the only two methods of fund transfer in Brazil before the advent of PIX.
For those unfamiliar with the history of payment methods in Brazil, here’s a brief overview. In the earlier days (around 2020), there were only two banking alternatives for transferring funds: TED (Tranferência Eletrônica Disponível) and DOC. Transactions below R$ 4,999.00 were automatically categorized as DOC, taking one day to clear. Transactions exceeding this amount were classified as TED, operating only during business hours, from 10 AM to 5 PM in Brazil. TED transactions cleared on the same day if it was a business day.
Understanding this context sheds light on why PIX became a tremendous success in Brazil. If someone couldn’t afford to wait a day for a DOC transaction to clear, they would likely visit a physical branch of their bank to withdraw cash from an ATM, which also had limitations on withdrawal amounts.
PIX eliminated this friction, creating a competitive payment ecosystem by offering speed and transparency. This is why there were 4 billion PIX transactions in 2023.
Rest in peace, DOC. You served us well for 39 years!
