On September 26, 2018, Payments Canada announced the go live of a new third daily exchange period for Canada, a collaborative effort with key industry stakeholders, including Canadian financial institutions. Today, we are pleased to share the subsequent enhancement to Automated Funds Transfer - two-hour funds availability - is now live.
What this means is that, subject to some exceptions, payees will now receive funds from qualifying financial institutions no later than two-hours after the deadlines.* This new feature applies to Canadian dollar credit transactions exchanged between financial institutions on the due date.
These combined enhancements to Canada’s Automated Funds Transfer - also known as Electronic Funds Transfer or batch payments - now enable features like same-day payroll, expedited bill payments, faster settlement of invoices and more uniform service across the country, in all time zones.
The introduction of a third exchange period and two-hour funds availability are outcomes of Canada’s payments modernization initiative, an industry-wide program shaped by the connection and collaboration of Canadian financial institutions, business, government and consumers. To take advantage of these new options, businesses should speak with their financial institutions.
For more about Payments Canada’s modernization effort, visit: modernization.payments.ca.
*All Direct Clearers and Indirect Clearers that opt-in to faster funds are required to provide funds availability to payees within two-hours of their respective deadlines, as defined in Payments Canada’s Rules.