By-law Amending the Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System: SOR/2025-198
Canada Gazette, Part II, Volume 159, Number 21
Registration
SOR/2025-198 September 26, 2025
CANADIAN PAYMENTS ACT
The Board of Directors of the Canadian Payments Association makes the annexed By-law Amending the Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System under subsection 18(1)footnote a of the Canadian Payments Act footnote b.
Ottawa, July 24, 2025
Garry Foster
Chairperson of the Board of Directors of the Canadian Payments Association
The Minister of Finance, under subsection 18(2)footnote c of the Canadian Payments Act footnote b, approves the annexed By-law Amending the Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System, made by the Board of Directors of the Canadian Payments Association.
Ottawa, August 25, 2025
François-Philippe Champagne
Minister of Finance
By-law Amending the Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System
Amendments
1 Section 4 of the Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System footnote 1 is replaced by the following:
Obligation — non-member locals
4 Every member that exchanges payment items and either effects clearing and settlement or makes entries into the ACSS on behalf of a non-member local referred to in subparagraph 6(1)(a)(ii) shall ensure that the non-member local complies with the by-laws and the rules as if it were a member.
2 Subparagraph 6(1)(a)(ii) of the By-law is replaced by the following:
- (ii) a local that is not a member and belongs to a central or cooperative credit association that is a member; and
3 (1) Subparagraphs 28(1)(a)(iv) and (v) of the By-law are replaced by the following:
- (iv) locals, whether members or non-members, that belong to the group clearer, or
- (v) locals, whether members or non-members, that belong to another central or cooperative credit association if that central or cooperative credit association belongs to the group; or
(2) Subparagraph 28(1)(b)(iv) of the By-law is replaced by the following:
- (iv) other members, excluding centrals, cooperative credit associations, federal credit unions, locals, qualified corporations, trustees of qualified trusts and life insurance companies.
(3) Subsection 28(2) of the By-law is replaced by the following:
Central acting for non-member locals
(2) For greater certainty, if two or more non-member locals belong to two centrals, one of which belongs to the other central, one of the centrals may appoint the other central to act as group clearer for itself and the non-member locals.
Coming into Force
4 This By-law comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the By-law.)
Issues
As a result of amendments to the Canadian Payments Act (the Act), technical amendments must be made to Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System (the By-law) to ensure that the wording is consistent with that of the enabling legislation.
Objective
The amendments have the following objectives:
- to harmonize terms used in the By-law with those used in the enabling statute, the Canadian Payments Act; and
- to add clarity to a regulatory provision.
Description and rationale
The By-law sets out the requirements and procedures for the exchange, clearing, and settlement of payment items (including cheques and direct deposits) through the Automated Clearing Settlement System, Canada’s retail batch payment system. It governs participants’ obligations, settlement processes, and the overall operation of the system.
Previously, credit union locals that were members of a central or a cooperative credit association were not eligible for membership in Payments Canada. Amendments to the Act expand membership eligibility to include these entities, and consequential amendments to the By-law are required to differentiate between member and non-member locals.
Amendments to Section 4, subparagraph 6(1)(a)(ii) and subsection 28(2) of the By-law clarify that these provisions apply to non-member locals. Amendments to subparagraphs 28(1)(a)(iv) and (v) of the By-law clarify that these provisions apply to all locals, whether members or non-members. Subparagraph 28(1)(b)(iv) has also been updated to add locals to the list of other members.
One-for-one rule and small business lens
The one-for-one rule does not apply to these amendments, as there is no change in administrative costs or burden to businesses.
Analysis under the small business lens determined that the proposal will not impact small businesses in Canada.
Contact
Gillian Carter
Director, Assistant Corporate Secretary and Senior Legal Counsel
Canadian Payments Association
Constitution Square, Tower II
350 Albert Street, Suite 800
Ottawa, Ontario
K1R 1A4
Email: gcarter@payments.ca