Publication date: December 12, 2023
Find case scenarios organized by topic to help individuals and entities determine whether they are subject to the Retail Payment Activities Act and should register with the Bank.
The examples provided are not a replacement for the Criteria for registering payment service providers supervisory policy, but rather they are meant to complement the policy. They should be read in conjunction with the policy.
Topics
Affiliated entities
Illustrates what may be considered an affiliated entity as defined in the Retail Payment Activities Act.
Agents and mandataries
Illustrates the obligations of registered payment service providers (PSPs) to declare their agents and mandataries. And describes the situations when agents of exempted PSPs must register with the Bank of Canada.
Designated payment systems
Provides examples to help differentiate payment functions performed using a designated system under section 7 of the Retail Payment Activities Act (and exempted as a result) from other non-exempted payment functions related to the same transaction.
Geographic scope
Provides examples of how to apply the geographic scope criterion under the Retail Payment Activities Act when a foreign retail payment service provider is involved.
Merchant or group of merchants instrument exclusion
Illustrates the types of activities exempted under paragraph 6(a) of the Retail Payment Activities Act.
Merchants and the incidental payment function
Provides examples of providing or maintaining an account payment function and explains the incidental concept under the Retail Payment Activities Act.
Payment accounting software and invoice payment services
Provides details about the payment functions: provision or maintenance of an account on behalf of an end user; the initiation of an electronic funds transfer at the request of an end user; the provision of clearing and settlement services; and the notion of incidental in the Retail Payment Activities Act.
Point-of-sale terminals
Provides details about the payment functions: initiation of an electronic funds transfer at the request of an end user; the authorization of an electronic funds transfer; and the transmission, reception or facilitation of an instruction in relation to an electronic funds transfer.
Disclaimer
The case scenarios are illustrative examples reflecting the Bank of Canada’s interpretation of certain requirements set out in the Retail Payment Activities Act (RPAA). All names, facts and descriptions in these scenarios are entirely fictitious and do not reflect any real or actual individuals or entities.
Additionally, they do not represent legal advice and should not be used as a replacement for seeking such advice if an individual or entity is unsure about whether they are required to register with the Bank of Canada as a payment service provider. The nature of the products and services offered by each individual or entity will vary, as will the circumstances around offering these products and services. Therefore, any individual or entity that may be subject to the RPAA should assess their own situation on a case-by-case basis according to their own facts and circumstances. Any entity or individual that may be subject to the RPAA is ultimately responsible for determining whether they are required to register with the Bank.
The examples provided are not a replacement for the Criteria for registering payment service providers supervisory policy, but rather they are meant to complement the policy. They should be read in conjunction with the policy.
If you have questions about retail payments supervision or have any comments on this topic, contact us.