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Payments General

Payments Canada implements a new credit risk model for retail payments

Tuesday 13 March 2018 | 10:07 AM CET

Payments Canada has announced the implementation of a new credit risk model for the country’s retail payment system, effective March 12, 2018.

With these changes, the retail system, called the Automated Clearing Settlement System (ACSS), will be aligned with international practices and risk management standards. The Interim Credit Risk Model will see system participants pledging collateral to cover the risk they bring to the system.

The ACSS is where the vast majority of payments in Canada are cleared, including both paper-based and electronic payments. The system is used by specific participant financial institutions, referred to as direct clearers, who handle the clearing and settlement of payments for their own customers, as well as for customers that maintain accounts at other financial institutions, known as indirect clearers.

Earlier in December 2017, Payments Canada has issued a white-paper with insights regarding the state of payment system modernisation in Canada.

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