Resources for payment service providers

These fictional case scenarios illustrate the Bank of Canada’s approach to online marketplaces, and show examples of payment functions that are, and are not, incidental to a marketplace. These include the provision and maintenance of an account; the holding of funds on behalf of an end user; the initiation of an electronic funds transfer (EFT); authorization of an EFT and the transmission, facilitation or reception of an instruction in relation to an EFT; and the provision of clearing or settlement services.

These fictional case scenarios provide more details about the following payment functions performed in relation to cryptocurrencies: provision or maintenance of an account; holding of funds on behalf of an end user; initiation of an electronic funds transfer at the request of an end user; authorization of an electronic funds transfer or the transmission, reception or facilitation of an instruction in relation to an electronic funds transfer.

These fictional case scenarios provide examples of payment functions that are, and are not, incidental to a consumer lending business.

These fictional case scenarios provide examples to help providers identify whether they perform the payment function of holding funds.

These fictional case scenarios provide more detail about performing the following payment functions: initiation of an electronic funds transfer (EFT) and the authorization of an EFT or the reception, transmission, reception or facilitation of an instruction in relation to an EFT.

These fictional case scenarios provide examples of incidental activities under the Retail Payment Activities Act, especially in the context of card program managers.

These fictional case scenarios provide more details about the performance of payment functions under the Retail Payment Activities Act by providers of acquiring services, including in respect of the holding funds payment function.

These fictional case scenarios illustrate the application of the securities exclusion in paragraph 6(b) of the Retail Payment Activities Act.

These fictional case scenarios provide examples to help providers identify whether they perform the holding funds payment function, especially in the context of cross-border remittances.

These fictional case scenarios provide examples of incidental activities under the Retail Payment Activities Act.