The Real-Time Rail is a new piece of national payment infrastructure that will allow Canadians to send and receive irrevocable, data-rich payments in real-time. These payments will not only be sent and received in real-time, but they will also clear and settle between their financial institutions in real-time, 24/7, 365 days a year.
What is a real-time payment?
Real-time payments are single credit transfer push payments. When a real-time payment is initiated, the Real-Time Rail payment system exchanges a payment message between the sending and receiving financial institutions. Multiple communications then occur between the sending and receiving financial institutions in relation to the processing of the payment. The final message confirms the occurrence of settlement and that the receiver’s account has been credited. This entire process of exchanging and settling funds happens in seconds.
With the Real-Time Rail, a business can distribute payroll, bonuses and expense reimbursements to its employees anytime during the day or night. An individual can make a down payment on a new vehicle at the dealership in minutes without needing a bank draft or cheque. This gives it more flexibility around the management of payment cycles.
Real-Time Rail system components
The Real-Time Rail will be transformative, enabling new and innovative payment use cases, improving cash flow and providing greater certainty to businesses and consumers alike.
The Real-Time Rail is a complex, large-scale, multi-year infrastructure program that includes the following components:
- The real-time clearing and settlement component
- The real-time exchange component
- Third party exchanges flowing through the clearing and settlement component
- Centralized fraud solution
- Comprehensive by-laws, rules and standards
The Real-Time Rail is also designed to accommodate competitive or overlay services.
Explaining the Real-Time Rail
Payments Canada’s Chief Delivery Officer, Jude Pinto, explains the Real-Time Rail payment system and the value it will provide to Canadian consumers and businesses.