Nov. 17, 2022
Bank Of Canada Creates Rules For Retail Payments
The Bank of Canada has taken on extra responsibilities to help protect consumers when they pay for things. The federal government enacted the Retail Payment Activities Act (RPAA) in June 2021, making the bank responsible for supervising payment service providers (PSPs). The supervisory framework could apply to anyone in the business of helping people and companies make financial transactions (or transfer and store money through electronic means). This includes payment processers, digital wallets, and money transferers. Under the act, PSPs will be required to register with the Bank of Canada which will maintain public lists of all the PSPs that have signed up and those that have had their registration refused or revoked. It has the power to take action if a PSP does not comply with the act or its regulations. The goal is to support innovation in the payments ecosystem while ensuring PSPs are managing their operational risks and ensuring consumers’ funds are protected.