Payments industry delivers next milestone on Modernization journey: faster, more convenient and flexible batch payments across all time zones
Payments Canada introduces a third daily interbank period for financial institutions to exchange batch payments
OTTAWA, September 26, 2018 – Payments Canada, the country’s financial market infrastructure for payments, today announced the go live of a new third daily exchange period for Canada, a collaborative effort with key industry stakeholders, including Canadian financial institutions. This enhancement to Automated Funds Transfer - also known as Electronic Funds Transfer or batch payments - combined with upcoming changes for faster funds availability supports Canadian businesses being able to move funds faster, make time-sensitive same-day payments, and increases convenience and choice, particularly for companies in Western Canada.
The third daily interbank exchange will take place at 9 p.m. ET, extending the time available for payments processing. The new exchange window delivers more flexible service across all time zones, including better working day access for Western Canada. Building on this improvement, Payments Canada is also on track to go live in the coming weeks with two-hour funds availability, which will support quicker access to funds for more immediate payment scenarios, such as emergency payroll.
“Every year thousands of Canadians rely on batch payments for payroll and bill payments. In 2017, batch payments accounted for more than 1.7 billion payments worth about $3 trillion,” said Gerry Gaetz, President & CEO of Payments Canada. “The improvements to batch payments, which are the result of extensive commitment and investment from our member financial institutions, add to the overall reliability and effectiveness of this payment choice, and better accommodate the working day on the West Coast.”
Payments Canada’s modernization journey started with a vision exercise which involved a series of consultations with more than 100 organizations across the country. Through this effort, Payments Canada identified batch payments as a staple and necessary part of Canada’s overall payments ecosystem, with consensus that a few enhancements could deliver greater value to the marketplace.
“AdvantageBC was pleased to have the opportunity to share the voice of western-based businesses during Payments Canada’s vision exercise,” said Colin Hansen, President and Chief Executive Officer, AdvantageBC. “Seeing some of our consultation input now a reality is an exciting milestone for Canada as the result is a more favourable environment for Canadian financial service companies to compete in a changing global marketplace, which is a win for Canada’s overall economic future.”
The introduction of a third exchange period and two-hour funds availability, the latter to be effective in October 2018, are outcomes of Canada’s payments modernization initiative. Businesses should check with their financial institution for processing deadlines in order to meet the third daily interbank exchange period.
For more about Payments Canada’s modernization effort, visit: modernization.payments.ca.
About Payments Canada
Payments Canada ensures that financial transactions in Canada are carried out safely and securely each day. The organization underpins the Canadian financial system and economy by owning and operating Canada’s payment clearing and settlement infrastructure, including associated systems, bylaws, rules and standards. The value of payments cleared by Payments Canada’s systems in 2017 was approximately $50 trillion or $200 billion every business day. These encompass a wide range of payments made by Canadians and businesses involving interbank transactions, including those made with debit cards, pre-authorized debits, direct deposits, bill payments, wire payments and cheques. Payments Canada is a proud supporter of the Catalyst Accord and The 30% Club.
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