Clarifying ACSS Rules for Non-member Locals

Summary#

This is an amendment to By-law Amending the Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System that updates wording and clarifies who must follow Payments Canada rules. The changes mainly make clear how non-member local credit unions are treated when a member institution clears or settles payments for them.

What it does#

• Clarifies that any member that exchanges payment items or makes entries into the Automated Clearing Settlement System (ACSS) on behalf of a non-member local must ensure that the non-member local follows the by-laws and rules as if it were a member.
• Defines a non-member local more clearly as a local that is not a member but belongs to a central or cooperative credit association that is a member.
• Says certain provisions now explicitly apply to all locals, whether they are members or non-members.
• Updates the list of who counts as “other members” to include locals in a specific spot.
• Confirms that, where two or more non-member locals belong to two centrals (and one central belongs to the other), one central may appoint the other to act as group clearer for itself and those non-member locals.
• Brings wording into line with the Canadian Payments Act and aims mainly at clarity and consistency with that law.

Who's affected#

• Non-member local credit unions (locals) that belong to a central or cooperative credit association.
• Centrals and cooperative credit associations that are members of the Canadian Payments Association and that clear or settle payments for those locals.
• Other participants in the ACSS (banks and payments participants) who handle clearing and settlement for locals may notice clearer responsibilities and expectations.
• The Regulatory Impact Analysis Statement says small businesses are not affected; the change is mainly about internal responsibilities among payment system participants.

Why it matters#

• It makes clear who must follow Payments Canada rules when one institution clears or settles payments for another. That reduces confusion about responsibilities between centrals and their local credit unions.
• For customers of affected credit unions, it could mean their local has clearer standing in the national clearing system, which helps with predictable handling of cheques and direct deposits.
• The amendments were registered and take effect on the day of registration: September 26, 2025.
• The government’s analysis says the changes are technical, align wording with the Canadian Payments Act, and do not add costs for businesses.