Money order

A payment item issued by a member and drawn on itself for the purpose of ordering a payment to be made to a payee.

Multi-Use Core System

Core payment systems that serve both an LVPS and a retail payment system functions.

Multilateral netting

The net amount that represents the difference between what is owed by each participant to all others and what others owe that participant.

National retail payment systems

Payment structures that as a group are critical to the economy but a shock or disruption in one system would likely have limited impact on consumers and business, limited risk of contagion, and would be less likely to affect the Canadian financial system and economy.

Negotiating institution

See collecting financial institution.


The process of establishing the amount owed by one FI to another by adjusting the mutual claims of each on the other. It allows participants to minimize the amount of liquidity necessary for settlement. Netting may be bilateral or multilateral, by position or by novation.

Netting by novation

The underlying gross obligations are discharged by the netting process and replaced by a net obligation.


When a payment item is drawn on one financial institution and deposited to a different account within the same financial institution. On-Us payments do not result in a Payments Canada clearing entry (and do not appear in Payments Canada system data)

Online payments

Payments initiated by a customer online for the purchase of goods or services in accordance with CPA Rule E2 that result in a credit from the customer's account at a financial institution to a merchant. Online payments include online e-wallet and electronic Person-to-Person (P2P) transactions, initiated through online services and providers that are prefunded or linked to deposit accounts at financial institutions (e.g., PayPal).