Publication date: December 12, 2023
This supervisory policy explains the one-time fee applicants must pay when submitting an application to register as a payment service provider with the Bank.
For terminology about retail payment supervision, refer to the glossary.
About the registration application fee
Under subsection 29(2) of the Retail Payment Activities Act (RPAA), all applicants who submit an application to register as a payment service providers (PSPs) must pay a one-time non-refundable fee. This is referred to as the registration application fee.
Amount of the fee
As of November 1, 2024, the registration application fee is $2,500. It is exempt from Canadian sales tax.
In subsequent years, and in alignment with subsection 25(1) of the Retail Payment Activities Regulations (RPAR), the fee increases each calendar year and is adjusted by the year-over-year percentage change in the September all-items consumer price index (CPI) as published by Statistics Canada.
The formula to calculate the fee is $2,500 x (A ÷ B), where:
- A is the September all-items CPI for the calendar year immediately before the year in which the application is submitted; and
- B is the September all-items CPI for 2024, the calendar year in which this section comes into force.
Under subsection 25(3) of the RPAR, if the result of this calculation is less than the fee from the previous calendar year, the amount of the fee will remain the same as the fee from the previous calendar year.
Every December 1, the Bank of Canada will publish a Fee Bulletin to announce the fee that will take effect the following January 1.
Payment of the fee
The registration application fee must be paid in full by credit card through the web application for PSPs (PSP Connect). The fee cannot be paid in instalments. Direct deposit and wire transfer options may be accepted after multiple unsuccessful credit card attempts.
Failure to register may result in enforcement actions, such as a notice of violation or administrative monetary penalty.
The Bank will evaluate applications only after the registration application fee is received in full.