Glossary

Retail payments

Retail payments are mainly consumer payments of relatively low value and urgency.

Return replacement document (RRD)

A form of an image printout that meets the specifications in Standard 013 and which may be used for the purpose of return in accordance with Rule A10.

Routing number

A routing number identifies the financial institution and the branch to which a payment item is directed. Along with the account number, it is essential for delivering payments through the clearing system. In Canada, there are two formats for routing numbers: one for electronic payment items and one for paper payment items.

RTGS (Basic)

In Real Time Gross Systems, each payment is settled individually as soon as the transfer order is submitted and accepted for settlement.

RTGS equivalent

A settlement system which couples final and irrevocable transactions with a DNS process, to emulate an RTGS experience for users. As a DNS system settlement is delayed to allow for netting of transactions across participants.

RTGS with LSM

An RTGS that utilizes a central queue to rapidly off-set transactions between participants, to lower the collateral required to settle each transaction, over what would be needed if each transactions were settled on a real-time basis.

SEPA

Single Euro Payments Area (SEPA) is a payment-integration initiative of the European Union for simplification of bank transfers denominated in euro.

Settlement

An act that discharges obligations in respect of funds between two or more parties. For ACSS, it means the payment of clearing balances.

Settlement account

An account which is established and maintained by each direct clearer, at the Bank of Canada, or by each indirect clearer with its clearing agent(s), for the purpose of settlement.

Settlement Before Exchange (SBE) Systems

Settlement Before Exchange systems use arrangements where participants must settle file batch totals before the files themselves may be exchanged

Stale-dated

An item dated more than six (6) months prior to presentment for payment.

STP

Straight-Through-Processing – the process of transmitting and reconciling a payment in an automated fashion, such that no human intervention is required.