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Canadian Payment Systems Powerpoint

Payment systems are structures established to facilitate the clearing and settlement of financial and monetary transactions. Canadians use various payment instruments like cash, cheques, debit/credit cards, and e-money to make purchases, transfers funds, and financial investments. The two major payment systems in Canada are the Large Value Transfer System (LVTS) and the Automated Clearing Settlement System (ACSS). The LVTS is a real-time electronic wire transfer system owned by Payments Canada, while the ACSS is a deferred net settlement system that clears retail payments overnight.

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82 views

Canadian Payment Systems Powerpoint

Payment systems are structures established to facilitate the clearing and settlement of financial and monetary transactions. Canadians use various payment instruments like cash, cheques, debit/credit cards, and e-money to make purchases, transfers funds, and financial investments. The two major payment systems in Canada are the Large Value Transfer System (LVTS) and the Automated Clearing Settlement System (ACSS). The LVTS is a real-time electronic wire transfer system owned by Payments Canada, while the ACSS is a deferred net settlement system that clears retail payments overnight.

Uploaded by

Printing Committee
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Canadian

Payment
Systems
What is a Payment
System?
“
Payment systems are structures
established to aid the clearing and
settlement of financial and other
monetary transactions

”3
Canadians use various “payment instruments” to make
financial investments, purchase goods and services, and
to transfer funds from one person to another.

These instruments include:


• Cash
• Cheques
• debit and credit cards
• e-money.

4
Types of
Payment
Systems in
Canada
5
Large Value Transfer System Automated Clearing
(LVTS) Settlement System (ACSS)
- Electronic wire transfer - Deferred net settlement system

- Real-time - Cleared overnight

- Launched on February 4, 1999 - Clears retail payments, including


paper-based payment items
- Owned and operated by
Payments Canada - Owned and operated by
Payments Canada

6
Large Value Transfer System (LVTS)
The LVTS is a real-time, electronic wire transfer system. It
processes time-critical and large-value payments quickly and
continuously all day. It was launched on February 4, 1999 and is
operated and owned by Payments Canada.

It provides customers and participants with certainty that a


payment is final and irrevocable in real time once a payment has
passed the system’s risk-control tests.

7
Automated Clearing Settlement System
(ACSS)
It is a deferred net settlement system that clears retail payments, including
pre-authorized debits and credits, small-value electronic payments, paper-
based payment items, point-of-sale debit card payments, and automated
banking machine transactions.

In the ACSS, payment items that are exchanged among ACSS direct and
indirect participants throughout the day are cleared overnight and are
settled with interest compensation on the next business day.

8
Payments Canada

a non-profit
organization created by
an act of Parliament in
1980 under
the Canadian Payments
Association Act.

9
The mandate of Payments Canada is to:
- Establish and operate national systems for the clearing and settlement
of payments and other arrangements for the making or exchange of
payments;

- Facilitate the interaction of its clearing and settlement systems and


related arrangements with other systems or arrangements involved in
the exchange, clearing or settlement of payments; and

- Facilitate the development of new payment methods and technologies.

10
Sources:

https://www.bankofcanada.ca/core-functions/financial-system/canadas-major-pay
ments-systems
/

https://www.worldbank.org/en/topic/paymentsystemsremittances

11

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