Payments Canada updates by-laws to expand membership and tighten eligibility and compliance rules for PSPs, clearing houses and credit union locals

Payments Canada has implemented amendments to By-laws No. 1 and 3 to reflect changes to the Canadian Payments Act and the introduction of the Retail Payment Activities Act, with the stated aim of supporting broadened membership and participation eligibility while aligning with the evolving regulatory framework. Under By-law No. 1, membership requirements and Stakeholder Advisory Council criteria have been updated to reflect new eligible member types. Payment service providers applying for membership must be registered under the Retail Payment Activities Act and provide proof of registration, confirming that only PSPs supervised by the Bank of Canada are eligible. Clearing houses must demonstrate that their clearing and settlement system is designated under the Payment Clearing and Settlement Act, and credit union locals must provide evidence that they accept deposits transferable by order. The amendments also clarify that the Stakeholder Advisory Council can continue to include non-member PSPs to maintain a representative mix of payment service providers and users. By-law No. 3, which governs exchange, clearing and settlement through the Automated Clearing Settlement System, clarifies roles and responsibilities for member and non-member credit union locals and their compliance with Payments Canada by-laws and rules. A credit union local that becomes a member must comply directly, while a member clearing on behalf of a non-member local remains responsible for ensuring the non-member local complies as if it were a member. The amendments also clarify that group composition may include locals regardless of whether they are Payments Canada members, and include technical changes to align terminology with the Canadian Payments Act.