RPAA Compliance for Payment Processors
Understand the Retail Payment Activities Act (RPAA) and why it matters for Canadian merchants.
The RPAA requires payment processors to register with the Bank of Canada and maintain safeguards for merchant funds. Here's what you need to know.
What is the RPAA?
The Retail Payment Activities Act (RPAA) is federal legislation that regulates payment service providers (PSPs) in Canada. It came into force to protect consumers and businesses using payment services.
Before the RPAA, payment processors operated with minimal oversight. If a processor went bankrupt or mishandled funds, merchants had little recourse. The RPAA changes that by requiring registration, safeguards, and operational standards.
Think of it like banking regulation, but for payment processors. Just as banks are overseen by OSFI, payment processors are now overseen by the Bank of Canada under the RPAA.
Key RPAA Requirements
Registration with Bank of Canada
All payment service providers must register with the Bank of Canada and maintain their registration status. This is publicly verifiable.
Safeguarding of Funds
PSPs must safeguard merchant funds held in their accounts. This includes segregating funds and having plans for insolvency.
Operational Resilience
PSPs must maintain systems to ensure continuous operation, including disaster recovery and cybersecurity measures.
Transparency
Clear terms of service, pricing disclosure, and complaint handling procedures are required.
Why RPAA Compliance Matters for Merchants
Protection of Your Funds
If your processor holds funds (e.g., during settlement), RPAA safeguards ensure those funds are protected even if the processor fails.
Regulatory Compliance
Using an RPAA-registered processor means you're working with a regulated entity. This reduces your own compliance risk.
Trust Signal
RPAA registration shows that your processor meets Bank of Canada standards. It's a trust signal for your business and customers.
RPAA Compliance Checklist for Merchants
- ✓Verify your processor is RPAA registered. Check the Bank of Canada's public registry.
- ✓Review your processor's terms of service. Ensure they detail fund safeguarding and complaint procedures.
- ✓Understand settlement timing. Know when and how your funds will be paid out.
- ✓Ask about fund segregation. Are merchant funds kept separate from the processor's operating funds?
- ✓Know your recourse. What happens if there's a dispute or the processor fails?
Questions to Ask Your Payment Processor
"Are you registered under the Retail Payment Activities Act?"
They should say yes and provide their registration number or point you to the Bank of Canada registry.
"How are merchant funds safeguarded?"
Ask if funds are held in segregated accounts, what happens in case of insolvency, and whether there's insurance.
"What is your settlement schedule?"
Understand when funds will be deposited to your account. Daily? Weekly? This affects your cash flow.
"What is your complaint resolution process?"
RPAA requires clear complaint procedures. Make sure you know how to escalate issues if they arise.
RPAA Status of Major Processors
| Processor | RPAA Status | Notes |
|---|---|---|
| Stripe | Registered | Fully compliant |
| Square | Registered | Fully compliant |
| Helcim | Registered | Fully compliant |
| Moneris | Registered | Fully compliant |
Status as of February 2026. Verify directly with the Bank of Canada registry.
Frequently Asked Questions
Additional Resources
- Bank of Canada RPAA Page: Official information about the Retail Payment Activities Act
- Public Registry of PSPs: Verify your processor's registration status
- Canadian Payments Association: Industry body for payment regulation in Canada
This page is for informational purposes only and does not constitute legal advice. Consult with legal and regulatory professionals for your specific situation.