Wednesday, October 14, 2009

NXGEN Payment Services Appoints Two Key Executives

NXGEN Payment Services Appoints Two Key Executives.

(Adam Montague as COO, Dowe Kaufman as National Sales manager)

 

October 2009, Whitefish, MT – Calgary Alberta – NXGEN Payment Services, a leading Merchant Service Provider (MSP) for Elavon Global Payment Solutions, operating in USA and Canada, has promoted Adam Montague as its COO and Dowe Kaufman as its National Sales Manager.  Mr. Montague will be responsible for all the group’s companies’ operations, and Mr. Kaufman will be responsible for managing and developing NXGEN’s domestic sales channels.  In their positions, both Montague and Kaufman will report directly to the President, Giuseppe Caltabiano.

 

“Adam has been NXGEN’s Director of Boarding, Underwriting, and Support teams, redesigning each department’s organization with a key focus on quality of service, accuracy when we pay commissions, and attention to merchant needs. Dowe has worked in sales for us over the last year and brings an amount of valuable sales experience, having previously managed his own group of agents, and having grown portfolios over the past 7 years” said Giuseppe Caltabiano. “The exciting part for all of us is that we are constantly managing to grow even in a period where the markets have faced challenges.  We are able to further fuel growth with these appointments, confirming NXGEN’s commitment to its customers, sales forces and partners.”

 

“I look forward to continuing to build on NXGEN’s core competencies,” states Kaufman. “Deepening our footprint, growing our Agent Bank and National Referral Program, and continuing to expand our different Sales Channels will be our main focus. We also have great opportunities for growth in Vertical Markets, and now, thanks to our own MerchReports.com, into very large, national accounts.”

 

“NXGEN’s capability of servicing all our merchants, all our sales forces, referral partners, etc. while boarding new businesses both in USA and Canada is produced by the combination of a team of highly skilled and dedicated individuals and state of the art technology.  These skill sets and technical abilities allow us to be fast and accurate in any phase of our processes” explains Montague. “In the last year, we have achieved the ambitious objective of becoming fully paperless in our operations.”

 

About NXGEN
NXGEN is a multi-national provider of credit card processing in the United States and Canada.  NXGEN is one of the top MSPs for Elavon Global Payment Services through USBank.

 

NXGEN has been awarded MasterCard’s highest level of RAMP Compliance rating for their Fraud Prevention and Risk Management policies, and VISA certified NXGEN as one of only a few companies able to participate in their Tax Payment Pilot program. 

 

For more information, please contact NXGEN Payment Services at: 1-866-863-9977

E-mail: mjaffe@nxgen.com, Internet: www.nxgen.com, www.nxgencanada.com

Tuesday, August 18, 2009

Three indicted in largest U.S. identity theft scheme

Mon Aug 17, 2009 6:29pm EDT By Daniel Trotta

NEW YORK (Reuters) - Three men were indicted on Monday for allegedly stealing more than 130 million credit and debit card numbers in what U.S. authorities said they believe is the largest hacking and identity theft case ever prosecuted.

Albert Gonzalez, a former government informant already in jail in connection with hacking cases, and two unnamed Russians were indicted on charges related to five corporate data breaches from 2006 to 2008.

Card numbers were stolen in those breaches from credit-card processor Heartland Payment Systems and retail chains 7-Eleven Inc and Hannaford Brothers Co, prosecutors said.

The men targeted two other corporations, the U.S. attorney's office in New Jersey said in the statement, without naming those companies.

Heartland Payment Systems and Hannaford Brothers had previously and separately acknowledged the breaches, but the scope of the fraud had not been known.

Authorities also for the first time tied those cases to Gonzalez, who was arrested last year on suspicion of hacking into a restaurant chain's payment system.

Attorneys for Gonzalez were not available for comment.

Prosecutors said Gonzalez and the Russians, identified as "Hacker 1" and "Hacker 2", targeted large corporations by scanning the list of Fortune 500 companies and exploring corporate websites before setting out to identify

vulnerabilities.

A year ago, Gonzalez was indicted along with 10 others from five countries on accusations of stealing 41 million credit and debit card numbers from major retailers, including TJX Cos Inc, owner of the TJ Maxx and Marshall's retail chains. Prosecutors said that ring caused more than $400 million in damages.

Prosecutors said Gonzalez and the other two men used numerous techniques to penetrate the computer systems.

Gonzalez was being held in a Brooklyn jail. Prosecutors would not comment on the whereabouts of the two Russians.

All three were charged with conspiracy to gain unauthorized access to computers, to commit fraud in connection with computers and to damage computers, and conspiracy to commit wire fraud. Each faces up to 35 years in prison and large fines if convicted.

Prosecutors said in the statement that the suspects would seek to sell the data to others who would use it to make fraudulent purchases.

They cited one example in which they said the suspects went to retail locations to identify the type of checkout machines, and after further investigation into the computer systems they uploaded information onto servers that worked as hacking platforms. 

 

Thursday, August 6, 2009

PayLogec and NXGEN Canada Join Forces

August 4, 2009: Vancouver, British Columbia, Canada – PayLogec Merchant Solutions (www.paylogec.com), a Canadian leading payment service provider registered with Elavon Canada (previously known as Nova Information Systems), and NXGEN Canada (www.nxgencanada.com), a North American leading payment services provider, today announced the creation of a Partnership which will accelerate the availability of new payment services options to Canadian Financial Institutions, Trade Associations, Businesses and Non-profit Organizations in Canada.

 

Both PayLogec and NXGEN Canada (a company of the NXGEN Group) have been authorized resellers of Elavon Canada since 2005, and together they process approximately $2 Billion annually for merchants in North America.

 

By joining forces, they will synergize on resources and will be able to bring to market the most advanced payment options for both brick-and-mortar and Internet-based business, as well as the most advanced reporting tools that allow merchants, agents, Financial Institutions and Trade Associations, to monitor on-line their financial performances.

 

Don Andrews, President of PayLogec (now President PayLogec/NXGEN Canada), will manage this Partnership.

 

“The competitive environment is causing many processing providers to initiate a lower quality of service. At PayLogec/NXGEN, we are committed to the needs of our merchants, while operating with full integrity, respect, and excellence,” states Mr. Andrews. “This relationship with NXGEN Canada will allow us to focus on what we do best; selling ’Best in Class‘ payment services and supporting our merchants and partners. Furthermore, by making full use of NXGEN’s operations and IT infrastructure, we will automate processes and offer unique on-line data access to our valued partners.”

 

Thomas Nitopi, CEO of the NXGEN group and co-Chair of Elavon’s MSP Advisory Board, comments “NXGEN is one of the top partners of Elavon in North America. We have performed extremely well in Canada over the last 4 years, and now we are looking toward more accelerated growth by providing the marketplace comprehensive solutions through the relationship and network of the PayLogec/NXGEN team.”  He continues, “The last few months of preparation for this venture have been amazingly exciting.  NXGEN’s credibility in the payment industry is unblemished.  When we began talking with PayLogec, we realized that the core values by which we execute business were the same (especially their focus on long-term relationships with customers and partners) and were achieved only by offering true win-win propositions.”

 

PayLogec and NXGEN Canada are processing the payment transactions through Elavon, a top ten global acquirer, processing transactions over its secure, reliable and fully redundant network.

 

“I am thrilled at this alliance and its ability to address the specific needs of Financial Institutions and Trade Associations across Canada,” says Cory Taylor, Managing Director of Elavon Canada.  “By combining industry experience with Elavon’s robust network, customer service and pricing structure, PayLogec and NXGEN Canada have created an irresistible offer for every business, bank, credit union, and association.”

 

About PayLogec:         

PayLogec Merchant Solutions Canada is a registered payments partner with Elavon Canada and is a member in good standing of the Visa and MasterCard International Associations. PayLogec delivers Solutions, Service and Expertise in all areas of the payments industry and brings that to each and every merchant.

 

Expertise: Every merchant and business can be assured that its individual processing situation will be treated with complete respect and privacy.

 

Service: All merchants will be assigned a PayLogec/NXGEN account executive to not only present a processing program, but to be there to install, train and be available at anytime to assist with questions, technical issues and overall support. We value your business.

 

Solutions:  PayLogec/NXGEN, in partnership with Elavon, provide the most comprehensive processing solution choices to the merchant. From “Chip and Pin” ready POS Terminals with dual dial-up/Internet connectivity, Wireless options and a complete Virtual Suite of products, you can be assured PayLogec has the right solution for your needs at the lowest cost. Furthermore, when you choose one of our solutions they are completely supported and serviced by both PayLogec/NXGEN and Elavon. You never have to deal with the Manufacturer.

 

About Elavon

Elavon's Global Acquiring Solutions organization is a part of U.S. Bancorp (NYSE: USB) and provides end-to-end payment processing services and solutions to more than one million merchants in the United States, Europe, Canada and Puerto Rico. Elavon represents the former brands of NOVA Information Systems and its affiliates FHMS and euroConex. For more information, visit http://www.elavon.com.

 

About NXGEN Canada

NXGEN Canada is a fully-owned subsidiary of NXGEN International, a multi-national provider of credit card processing, e-commerce and comprehensive payment services. NXGEN International’s mission is “To increase the level of professionalism in the Payment Services Industry while providing merchants with the next generation of products at the most competitive prices—acting locally while thinking globally!”  The goal of NXGEN Canada is to set the standard for value and service through timely innovation and a company-wide commitment to each and every one of our merchants.”

 

For more information, please contact

PayLogec Merchant Solutions: by Phone 604-541-8781, e-mail ghowes@paylogec.com

NXGEN Canada: by Phone +1-888-866-9436, e-mail: klamothe@nxgeninternational.com, or on the Internet: www.nxgencanada.com and www.paylogec.com

 

 

Thursday, July 9, 2009

MasterCard welcomes rejection of price controls, support of debit competition

Toronto, July 1, 2009 -- MasterCard Canada welcomes today's decision by the Senate Standing Committee on Banking, Trade and Commerce to reject retail lobbyists' calls for price regulation on credit card payment systems-an approach that would have resulted in consumers' paying the price for merchants' credit card acceptance.

MasterCard also welcomes the Committee's support of competition in Canadian debit. Both recommendations will serve the best interests of consumers and merchants.

"The Senate Committee clearly recognized that price controls are inappropriate and would harm consumers," said Kevin Stanton, president, MasterCard Canada. "Australia continues to provide an excellent example of how such price controls reduce consumer credit card program benefits, and result in no appreciable decrease in the price of goods and services."

When Australia regulated the fees merchants pay for credit card acceptance in 2003, retailers simply pocketed the windfall. Other consequences of these price controls included:

  • Consumers' credit card fees and interest rates went up;
  • Some credit card issuers had to stop doing business, so competition and consumer choice was reduced;
  • Merchants charged consumers extra for using credit and debit cards, even though merchants' fees went down; and
  • Consumers' credit card benefits and rewards had to be reduced or disappeared entirely.

MasterCard also applauds the Senate Committee for recognizing the benefits to consumers and merchants of introducing competition in the Canadian debit market.

The Senate's recommendation of a flat-fee pricing model aligns with how MasterCard's Maestro debit product is already priced.

"MasterCard's Maestro debit solution is flat-fee based and is less expensive to merchants than Interac and will provide significant benefits for consumers, not the least of which is the ability to pay by debit in countries around the world," said Stanton. "It is time for a new era in Canadian debit."

MasterCard cautions that some other Committee recommendations will result in unintended negative consequences for consumers and small merchants in particular.

The recommendation on surcharging-allowing merchants to charge consumers extra for purchases made on a credit or debit card-essentially asks consumers to bear the merchant's operational costs, and could lead to the type of opportunistic surcharging being levied by merchants at the point of sale in Australia.

Similarly, the Committee's recommendation on honour-all-cards practices will create risk, confusion, delay and difficulty for both consumers and merchants at the point-of-sale.

"Consumers expect to be able to pay with their card of choice wherever the brand is displayed," Stanton said. "Arbitrary acceptance by merchants will create significant risk, unpredictability and confusion at the point-of-sale for both retail staff and consumers, and could lead to the possibility that some credit cardholders will be unable to pay for their purchases."

The recommendation on priority routing of debit payments will take the technical routing decision out of the hands of the parties-merchants and issuing banks-paying for the transaction. Specifically, the Senate's recommendations on priority routing will favour the incumbent debit monopolist and will in effect reduce competition in debit. It will also inject the very operational complications and costs the retail lobby was seeking to avoid in a competitive debit market. It will also result in no benefits and unnecessary confusion for consumers, who do not pay for debit transactions.

MasterCard Canada appreciates the opportunity provided by the Senate committee to participate in the comprehensive examination of Canada's credit and debit payments system and recognizes it has a role to play in promoting greater transparency and education to Canadian merchants. It has a number of initiatives underway to meet this need, including developing model disclosures, and small merchant education materials.

About MasterCard Worldwide

MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes approximately 21 billion transactions each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard(R), Maestro(R) and Cirrus(R), MasterCard serves consumers and businesses in more than 210 countries and territories. For more information go to www.mastercard.com .

Wednesday, July 8, 2009

Half a million Canadians are delinquent - Equifax Canada data reveals 19% jump

TORONTO, July 3 /CNW/ - Equifax Canada today released the latest
consumer credit delinquency data which shows that Canadians continue
to fall behind on their credit payments at an ever-increasing rate.
The average delinquency rate for Canada rose by approximately 19% over
a one-year span from May 31, 2008 to May 31, 2009. In April, the same
rate was increasing at 13%. The average delinquency rate for all of
Canada as of May 31, 2009 was 1.52%. This means that over a half a
million Canadians are now more than 90 days behind on their credit
payments.

Provincially, Nova Scotia had the highest average delinquency rate in
May at 2.07% and Saskatchewan had the lowest rate at 1.22%. Ontario's
rate was 1.74%.

Equifax Canada defines delinquent accounts as credit facilities that
have not received a payment for at least 90 days. The average
delinquency rate is calculated by comparing the number of delinquent
credit facilities to the total number of credit facilities. Equifax
Canada's experienced team of consultants and analysts compute
delinquency rates by analyzing data from Canadian lenders who report
to it on a daily basis.

Delinquencies - Their Alarming Rise

On a yearly basis, the average delinquency rates have been rising
dramatically in Alberta (26%) and British Columbia (27%), and, on the
east coast, Prince Edward Island experienced a 26% increase. The
national yearly average rate of increase is 18.8%.

It is important to note that these provinces continue to have average
delinquency rates that are lower than the national average with
British Columbia at 1.31% and Alberta at 1.42%. In Prince Edward
Island (2.05%), however, average delinquency rates were higher than
the national rate.

Calgary sees sharpest jump

Urban areas experienced some of the largest jumps in delinquency
rates. Five out of the ten cities monitored by Equifax Canada have
annual increases in delinquency rates that are higher than the
national average:

May 2009 Year over Year

Delinquency Rate Increase (%)
---------------- ------------
Calgary 1.32% 29%
Montreal 1.41% 18%
Vancouver 1.18% 22%
Quebec City 0.83% 17%
Edmonton 1.40% 23%
London 1.66% 20%
Hamilton 1.70% 20%
Toronto 1.98% 14%
Canada 1.52% 19%

With the exception of Quebec City, all provinces and cities monitored
by Equifax Canada from April 2009 to May 2009 experienced an increase
in their average delinquency rate.

Toronto continues to have the highest delinquency rate at 1.98%, even
though its yearly increase rate is 14.45%, which is below the national
average.

"While we have seen delinquencies increase steadily since the
beginning of the year, the rate of increase in the past 3 months has
been significantly higher," said Nadim Abdo, Vice President of Equifax
Canada Consulting Solutions. "The sharpest increase has resulted from
Credit Card and Sales Finance purchases, which have increased by 38%
and 58%, respectively, since May 2008. Such transactions typically
represent the purchase of durable goods, such as furniture or
electronics, and consumers appear to be willing to fall behind on them
first before they miss payments on their Bank Loans and Lines of
Credit."

This is another in a series of news releases that will feature Equifax
Canada's financial and demographic data, which can help businesses
target opportunities and make informed decisions. If you would like to
find out how Equifax Canada can use their unique insights to help you
make better decisions for your business, please contact us at
1-800-278-0278 or visit our website at www.equifax.ca.

About Equifax Inc. (www.equifax.com)

Equifax empowers businesses and consumers with information they can
trust. A global leader in information solutions, we leverage one of
the largest sources of consumer and commercial data, along with
advanced analytics and proprietary technology, to create customized
insights that enrich both the performance of businesses and the lives
of consumers.

Customers have trusted Equifax for over 100 years to deliver
innovative solutions with the highest integrity and reliability.
Businesses - large and small - rely on us for consumer and business
credit intelligence, portfolio management, fraud detection,
decisioning technology, marketing tools, and much more. We empower
individual consumers to manage their personal credit information,
protect their identity, and maximize their financial well-being.

Headquartered in Atlanta, Georgia, Equifax Inc. operates throughout
the U.S., Canada and 13 other countries in North America, Latin
America, and Europe. Equifax is a member of Standard & Poor's (S&P)
500 Index. Our common stock is traded on the New York Stock Exchange
under the symbol EFX.

For further information: Craig Hillyer, AVP, Product Management &
Innovation, at (416) 227-5290 or visit our website at www.equifax.ca

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SecureKey Technologies Inc. Wins ACT Canada 2009 Canadian Innovation Award

TORONTO, June 23 /CNW/ - SecureKey Technologies Inc., a provider of
next generation authentication solutions, has been awarded the ACT
Canada 2009 Canadian Innovation Award in Banking and Finance.

"It is extremely gratifying to be recognized by ACT Canada given the
organization's 20 year history of promoting the awareness,
understanding and use of advanced card technologies" says Greg
Wolfond, Chairman and CEO of SecureKey.

SecureKey's solution enables online service providers to accept
contactless cards or NFC devices as a second factor of authentication
by their customers to increase the security and convenience of
transacting online.

"The ability to leverage all forms of CHIP cards carried by customers
as a strong second factor of authentication will significantly thwart
online fraud. This is the most innovative solution I've seen in a long
time" says Catherine Johnston, President and CEO of ACT Canada.

While contactless technology was initially implemented in credit and
debit cards to facilitate small, in-person retail purchases,
SecureKey's solution leverages these same cards to provide stronger
authentication for online financial services, online payments and
network access.

About SecureKey Technologies Inc.

SecureKey Technologies Inc. is a privately held company based in
Toronto, Canada. SecureKey's innovative, patent-pending authentication
technology enables service providers to enhance their clients' online
experience while seamlessly increasing security and reducing fraud.

About ACT Canada

ACT Canada is the stakeholder association, focussed on secure payment,
secure identity management and other advanced applications. Now in
their 20th year, they are the authority on the Canadian market,
supporting members through working with key stakeholders.

ACT Canada helps members understand the market, public and private
sector applications and potential barriers. They facilitate knowledge
transfer and thought leadership through a neutral forum, while
expanding members' networks. Founded in 1989, ACT Canada is a
non-profit membership association.

For further information: Greg Wolfond, Info@SecurKey.com, (416) 226-4220

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Minister of Finance Launches Task Force on Financial Literacy

Toronto, June 26, 2009 - The Honourable Jim Flaherty, Minister of
Finance, today announced the establishment of Canada's Task Force on
Financial Literacy to help create a cohesive national strategy to
support initiatives across Canada aimed at improving financial
education.

"Our economy is built on millions of everyday financial decisions by
Canadians," said Minister Flaherty. "Recent events have shown us that
there are major risks and that financial literacy is an important life
skill. Whether it is a question of saving for retirement, financing a
new home or balancing the family chequebook, improving the financial
literacy of Canadians will add to the stability of our financial
system and make our economy stronger."

The task force fulfills a commitment made in Canada's Economic Action
Plan to outline objectives, including a concrete plan of action and a
framework for collaboration among stakeholders, for moving forward and
measuring progress on financial literacy in Canada. Members of the
task force are drawn from the business and education sectors,
community organizations and academia. The task force will be chaired
by Donald A. Stewart, Chief Executive Officer of Sun Life Financial
Inc. L. Jacques Ménard, Chairman of BMO Nesbitt Burns, will be the
Vice-Chair.

"I am honoured to undertake this role and I look forward to working
with such a strong and diverse task force to carry out our ambitious
mandate," said Mr. Stewart. "Valuable insights can be found
internationally and I hope to bring that perspective forward to help
Canadians make informed decisions to improve their lives."

"A great deal of fine work is going on across Canada on financial
literacy, be it in schools, in volunteer groups, through provincial
programs or through the federal Financial Consumer Agency of Canada,"
said Minister Flaherty. "This task force will develop a strategic plan
to build on this collective effort to help make all Canadians more
knowledgeable consumers, investors and savers."

Minister Flaherty said the task force complements other elements in
Canada's Economic Action Plan to strengthen consumer protection, such
as the recently announced improvements to credit card regulations,
which included improved disclosure of interest rate changes.

For more information on Canada's Economic Action Plan, visit
www.actionplan.gc.ca.

Biographical notes are attached.

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Shopster.com Unveils Free Merchant Network

CALGARY, June 30 /CNW/ - Shopster.com announced today the launch of
the world's largest online Merchant Network. The Shopster Merchant
Network is a one-stop shop for online sellers and suppliers to manage
all aspects of their business. Users of the network are empowered with
tools to manage their buying and selling relationships. In an industry
first, it is free to join.

"Shopster.com is introducing social networking for your products,"
says Sarath Samarasekera, CEO and co-founder of Shopster.com. "Sites
like Facebook and LinkedIn struggle to monetize, but the Shopster
network is about making money for our users which aligns our
interests. Your success is our success, and it's free to join, so
there really is no risk."

According to Paul McCluskey, Shopster's EVP Research and Development,
the Network is the product of five years of e-commerce development and
extensive research with Shopster's large existing user base.

"We wanted to release something that not only met, but exceeded the
expectations of the market," says McCluskey. "The Merchant Network
takes traditional software as a service (SaaS) and pushes it farther
than ever before, growing more powerful and more useful with each new
user. You don't use Shopster to run your business, Shopster is your
business. Cheaper, faster, more powerful. What every network and every
platform has been striving for."

In addition to providing a proven, stable platform for building online
stores, the new Shopster Merchant Network will allow you to:

- Dramatically reduce inventory costs
- Connect with suppliers and sellers immediately and manage those
relationships
- Integrate online commerce activities under one portal
- Enhance search engine discoverability ("search engine optimization"
or SEO)

Merchants and suppliers are encouraged to sign up at
http://www.shopster.com at no charge.

About Shopster.com:

Founded in 2004, Shopster.com is an official eBay Solutions Partner
that offers a suite of eCommerce solutions for small to medium sized
business. Thousands of online merchants rely on Shopster from around
the world. Shopster simplifies the complexities of online retail,
allowing merchants to manage their store, transactions, and supply
chain relationships in one easy to use place. Joining the Network is
free, so merchants can focus on growth and relationships, not on
costs.

For further information: demonstration accounts, or media interviews,
view our multimedia presentation at http://pitch.pe/16159 or contact:
Suzy Vadori, EVP Operations, Shopster e-Commerce, (403) 366-3713,
svadori@shopster.com

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Tuesday, June 30, 2009

NCR announces new French Canadian President to leverage mulit-channel self-service market in Canada

Focus will be helping Canadian businesses optimize self-service solutions

 

June 30, 2009 MISSISSAUGA, Ontario - NCR Corporation (NYSE:NCR) announced today the appointment of Luc Villeneuve as President of NCR Canada   

 

An accomplished information technology professional with over 20 years of experience, Villeneuve will be responsible for sales, client services, marketing, and the management of all aspects of NCR Canada’s financial and retail businesses, as well as the emerging vertical industries of travel, gaming, entertainment and healthcare. He will be based in the company’s Canadian head office in Mississauga, Ontario.

 

“Luc’s primary objective will be to help businesses in the Canadian financial and retail industries, as well as the travel, healthcare and entertainment industries,” said John Di Leo, region vice president North America, sales and marketing. “Luc will work with business to adopt and optimize self-service solutions to help lower their costs and open new channels of revenue.  There is tremendous growth of the self-service market in Canada. Luc will have close contact with our customers in Canada, helping them to be successful with their self service strategies.”

 

Prior to joining NCR, Villeneuve spent five years at Sun Microsystems Canada as the vice president of sales. During his career he has held senior executive sales and marketing positions at BCE, GE Capital ITS and CNC Global Limited.

 

Villeneuve is bilingual and holds a business administration degree from Algonquin College. He is a graduate of the University of Western Ontario's Marketing Management Executive Program and is a certified Six Sigma practitioner.

 

About NCR Corporation

 

NCR Corporation (NYSE: NCR) is a global technology company leading how the world connects, interacts and transacts with business. NCR’s assisted- and self-service solutions and comprehensive support services address the needs of retail, financial, travel, healthcare, hospitality, entertainment, gaming and public sector organizations in more than 100 countries.  NCR (www.ncr.com) is headquartered in Duluth, Georgia.

 

# # #

 

NCR is a trademark of NCR Corporation in the United States and other countries.

 

News Media Contact

 

Alix Edmiston, ABC*
Corporate Communications Consultant, NCR Canada
6865 Century Avenue  |   Mississauga, ON  |    L5N 2E2
905.819.4031 (office)  |   416.698.7760 (home office) |  416 809-9996 (cell)
www.ncr.com
*Accredited Business Communicator

 

 

 

Friday, June 19, 2009

Precidia: New TransNet Version Expands POS System Support and Achieves PA-DSS

Version 2.11 supports more POS systems, achieves early PA-DSS
validation and introduces e-commerce capability.

Ottawa, Canada, June 17, 2009 - Precidia Technologies Inc., a global
leader in the design and manufacture of Internet Protocol (IP) payment
and networking products, announced today that Version 2.11 of its
TransNet payment engine software on the POSLynx220 has been released.
This latest version expands support for the hospitality industry's
most popular POS systems, and is among the first such applications to
receive PA-DSS (Payment Application Data Security Standards)
validation. In addition, version 2.11 introduces TransNet's e-commerce
capability, which allows businesses to avoid gateway fees and meet
security mandates when accepting transactions online.

TransNet is payment engine software that resides on a secure router or
terminal. Integrating easily with any ECR, POS System, PC, payment
terminal or application, TransNet is a full featured payment
application that easily and cost effectively routes credit, debit,
gift or loyalty transactions to any processor. TransNet also features
the industry's most comprehensive approach to cardholder data
security, with its secure POSLynx220 hardware platform acting as a
'fortress' for cardholder data. The POSLynx220 features SSL encryption
and field tested firewalling. Version 2.11 of TransNet on the
POSLynx220 has received PA-DSS validation from the PCI Council, making
it among the first such applications to be validated as meeting these
stringent cardholder data security standards.

This latest version of the TransNet solution is the most comprehensive
to date, with support for multiple POS systems, including Maitre'D and
PixelPoint, ECR models from Sharp and TEC, as well as open source POS
systems such as OpenBravo. It also includes a growing list of
pre-certified transaction processors, including gift and loyalty.
Developers can look to this version of TransNet to integrate payment
functionality with an application or website, helping them to simplify
or avoid cardholder data security compliance requirements and
processor certifications. TransNet's new e-commerce functionality
allows businesses to eliminate costly gateway fees and meet the
necessary cardholder data security compliance requirements for
businesses accepting transactions online.

"TransNet is gaining traction in the payment industry, leading to more
certifications and support for processors, equipment and
applications", said Deepak Wanner, President of Precidia Technologies
Inc. "TransNet is increasingly being viewed as the industry's best
integrated payments alternative, and this latest version offers all
the features and functionality of previous versions, while including a
new e-commerce capability that developers can take advantage of".

TransNet is used in a variety of retail payment applications, and
integrates easily with ECRs, PC Systems, IP/Dial payment terminals,
POS applications and e-commerce websites. For more information on
Precidia's Payment solutions, visit www.precidia.com/payments.

About Precidia Technologies
Precidia Technologies is a global leader in the design and manufacture
of Internet Protocol (IP) payment and networking products. With
customers in over 85 countries, Precidia offers unique products
designed for simple serial networking, as well as a suite which
manages the complexity of IP based payments in the retail industry.
All of Precidia's products have been designed to maximize the
potential of existing equipment, with deployment, monitoring, security
and management tools. For more information, visit Precidia on the Web
at http://www.precidia.com

Media Contact
Precidia Technologies
Tracy King
Marketing Communications Manager
tking@precidia.com

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Zoompass - A Revolutionary New Mobile Payment Service Launched in Canada - Service Provides Canadians with a New Way to Send and Receive Money Instantly Using a Mobile Phone

TORONTO, June 15 /CNW Telbec/ - EnStream LP, a mobile commerce joint
venture company owned by Bell Mobility, Rogers and TELUS -- Canada's
three leading wireless operators, today launched Zoompass(TM), a
breakthrough mobile money transfer and payment service. Zoompass gives
Canadians a fast and convenient way to send and receive money securely
using their mobile phone. The service is enabled through the Zoompass
application on the mobile phone which combines an easy-to-use
interface with an integrated contact manager that redefines how users
send and receive money. Zoompass is a better way to pay than cash,
cheque, or wire transfer.

"The launch of Zoompass represents an important milestone in financial
services that makes the mobile phone the central device consumers use
to transfer money and make purchases," said Robin Dua, President of
EnStream. "The Zoompass mobile service ushers in a new era in
electronic payments that addresses a growing desire to move money
quickly and easily between friends, family, and merchants."

Zoompass makes it easy to split a lunch bill, request money from
parents, collect sports team fees, solicit money for a co-worker's
gift, or even pay a babysitter - right from a mobile phone. With the
groundbreaking launch of Zoompass, Canadians nationwide can expect to
hear more people ask one another "Do you want me to Zoom you the
money?"

Using a safe and secure Zoompass account, customers can link their
personal bank account or credit card to make loading and transferring
money simple and convenient. Customers can access Zoompass on their
computer via the Internet, from the mobile web, or by downloading the
Zoompass application right to their wireless phone. No matter how they
choose to access Zoompass, customers can manage their account 24/7,
anytime, anywhere and transfer money, request money, check their
balance, review their transaction history and more, all in real-time.

Canada's three largest wireless phone companies decided to collaborate
and launch the Zoompass service together with the vision that a common
standard and interoperability for mobile money transfers across all
networks would result in unprecedented convenience for consumers. The
Zoompass service is available to mobile users on the Bell Mobility,
Rogers, and TELUS networks as well as customers of their respective
sub-brands and affiliates including Fido, PC Mobile, and Solo Mobile.
Consumers can visit www.zoompass.com to enroll and start using the
revolutionary money transfer service on their mobile device.

Zoompass transactions run on a highly secure payment system and are
safeguarded by cutting-edge encryption technologies. During the
registration process, users must choose a secure Personal
Identification Number (PIN). Every Zoompass transaction is
PIN-protected, making Zoompass a more secure payment method than cash
or cheque. Customer financial information is stored on secure servers,
not on the mobile phone, so even if the phone is lost or stolen, the
user's Zoompass account remains secure.

The Zoompass mobile application combines a powerful user interface
design and sophisticated features that allow users to send or request
money with just a few keystrokes. The Zoompass application interfaces
with the address book on select phones, allowing users to quickly send
or request money from their contact list.

Another unique feature of the service is the ability for customers to
make secure purchases in stores and on the Internet using the balance
in their Zoompass account with the optional Zoompass Prepaid
MasterCard(R) Card, issued by Peoples Trust. The Zoompass Prepaid
MasterCard is enabled with PayPass(TM) technology which allows for
contactless payments. To pay, customers simply tap their Zoompass
Prepaid MasterCard at PayPass-enabled terminals across Canada. The
Zoompass Prepaid MasterCard can be used at millions of locations
worldwide wherever MasterCard cards are accepted, including
approximately 1.5 million ATMs.

"We are thrilled to deliver on Canadians' increasing desire to
transfer money quickly and securely, and from anywhere, anytime,"
added Mr. Dua. "The launch of Zoompass represents an important
milestone towards developing a mobile commerce ecosystem in Canada
that provides users a convenient mode of doing everyday transactions
with their phone."

About EnStream LP

EnStream LP is a mobile commerce company working to bring
transformational wireless payment solutions to market together with
its carrier partners. With anytime-anywhere money transfers and
payments representing a new frontier of wireless services, EnStream's
mandate is to develop standardized, secure, and easy-to-use mobile
commerce services that work across Canadian wireless carriers and with
existing credit, debit, and prepaid capabilities offered by financial
institutions. EnStream is a joint venture company owned by Canada's
three leading national wireless operators - Bell Mobility, Rogers
Communications Inc., and TELUS Corporation. The company is
headquartered in Toronto, Canada. For further information, please
visit www.enstream.com.

EnStream and Zoompass are trademarks of EnStream LP. All other marks
contained herein are the property of their respective owners.

MasterCard is a registered trademark of MasterCard International
Incorporated. PayPass is a registered trademark of MasterCard
International Incorporated.

The Zoompass Prepaid MasterCard(R) Card is issued by Peoples Trust
pursuant to license from MasterCard International Incorporated.

For further information: Elayne Miles, EnStream LP, (416) 365-9000
ext. 223, Mobile: (416) 617-4506, elayne.miles@enstream.com; LeeEllen
Carroll, Thornley Fallis Communications, Mobile: (613) 794-6868,
carroll@thornleyfallis.com

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514-842-0886
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Tuesday, June 16, 2009

Paradigm Quest announces their successful implementation of Filogix multi-lender solutions for their BPO business model

TORONTO, June 10 /CNW/ - Paradigm Quest Inc., Canada's leading mortgage
outsourcing company, announced today their successful implementation of
Filogix multi-lender solutions for their unique Business Process Outsourcing
(BPO) business model. Filogix (a subsidiary of Davis + Henderson) is a leading
provider of credit solutions for the retail lending, small business,
commercial lending, equipment finance, mortgage and real estate industries.
"Being the first organization in the Canadian mortgage industry with a
pure BPO business model, came with unique mortgage processing hurdles we
needed to overcome," said Chris Mariani, CIO, Paradigm Quest Inc. "Filogix
understood our business and through continuous advancements to their lending
offerings, the solution significantly increases our efficiencies and improves
the overall underwriting experience."
Filogix mortgage lending solutions now have multi-lender capabilities,
meaning Underwriters are able to log in once and process deals for multiple
lenders; while only being able to view and edit the Lending institution's data
they have been granted access. It is a highly secure solution that not only
benefits the BPO model, but also large Lending institutions with consolidated
underwriting centres, supporting several different mortgage businesses.
"We were excited to deliver these added efficiencies to Paradigm Quest,
as we understood their pain points and wanted to improve their situation,"
said Lori Ker, EVP Lender Services, Filogix. "Our client's experience is our
primary focus and we will continue to find ways to enrich our solutions and to
meet the unique needs of all our clients."
Paradigm Quest has been using Filogix solutions since their inception in
2005.

About Filogix Limited Partnership:

Filogix Limited Partnership is a leading provider of lending solutions.
With clients in the United States and Canada, Filogix technologies are used by
industry leaders in retail lending, small business, commercial lending,
equipment finance, mortgage and real estate.
For more information about Filogix, please visit www.filogix.com.

About Paradigm Quest:

Paradigm Quest is a strategic partner for Canadian financial institutions
allowing them the ability to focus on their core competencies while having
confidence that their operations, and most importantly their customers, are
being managed by passionate professionals who exceed client expectations. By
leveraging best practices and our core cultural focus on innovating,
processing & technology we bring solutions to our strategic partners that
dynamically redefine efficiencies, excellence and quality in the market place.
For more information about Paradigm Quest, please visit
www.paradigmquest.com.


For further information: Judy Dinn, EVP Product Solutions of Filogix Limited
Partnership, (416) 360-1777 ext. 3394, judy.dinn@filogix.com; Tracy
McLaughlin of Paradigm Quest, (416) 366-8606 ext. 2295,
info@paradigmquest.com

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514-842-0886
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Monday, June 15, 2009

15th Annual Regulatory Compliance for Financial Institutions

TORONTO, June 4 /CNW/ - The Regulatory Compliance for Financial
Institutions conference has brought together Canada's compliance professionals
since 1994 to exchange tips and best practices with industry leaders.
Delegates will gather at the 15th annual event in Toronto on November 19 & 20,
to learn practical strategies to mitigate their regulatory risks.

2009 topics include:
--------------------
- Learn about major issues in regulatory compliance such as AML/ATF
requirements, outsourcing, privacy compliance, good governance and
much more.
- Anticipate the impact of recent market turbulence on regulatory
compliance
- Analyze the past year in compliance and identify future priorities

The 2009 speaker faculty features leading experts from: Amex Bank of
Canada, BMO Financial Group, CIBC, Royal Bank of Canada, Scotiabank, TD Bank
Financial Group and many more.

New for 2009!
-------------
- Executive Roundtable: Analyzing Regulation in Light of the
Financial Crisis
- Interactive Session: Exchanging Best Practices in Managing a
Robust Compliance Program

Conference Title: Regulatory Compliance for Financial Institutions
Date: November 19 & 20, 2009
Location: Arcadian Court, Toronto
Website: www.RegulatoryComplianceforFIs.com

About The Canadian Institute
For over 20 years, The Canadian Institute's conferences, summits and
executive briefings have provided the business intelligence that Canadian
decision makers need to respond to challenges and opportunities both here at
home, and around the world. The Canadian Institute operates as a think tank,
monitoring trends and developments in all major industry sectors, in the law,
and in public policy, with a view to providing information on the leading
edge. Headquartered in Toronto, The Canadian Institute produces over 180
events a year, attended by thousands of senior and C-level delegates from
across the country. For more information, visit www.CanadianInstitute.com.
Media passes are issued at the discretion of The Canadian Institute and
must be arranged in advance. Passes require two business days to process.
Media can register in advance. For media accreditation contact:
Jessika Hunt 416-927-0718 Ext. 324 or j.hunt@canadianinstitute.com.


For further information: Jessika Hunt, The Canadian Institute, 1329 Bay
Street, Toronto, Ontario, M5R 2C4, (416) 927-0718 Ext. 324,
j.hunt@CanadianInstitute.com

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150-5585 Monkland Avenue
Montreal, Quebec, Canada H4A1E1
514-842-0886
info@frontiertimes.ca

Thursday, June 11, 2009

Business Services Industry Projected to See Greatest Hiring Increases

TORONTO, June 11 /CNW/ - Employers are expected to be conservatively
optimistic about adding accounting and finance professionals in the third
quarter, according to the Robert Half International Financial Hiring Index.
Twelve per cent of chief financial officers (CFOs) expect to hire full-time
employees during the third quarter while 6 per cent anticipate personnel
reductions. The net 6 per cent increase is up one point from the
second-quarter forecast.
The Robert Half International Financial Hiring Index is based on
telephone interviews with more than 270 CFOs across Canada. It was conducted
by an independent research firm and developed by Robert Half International,
the world's first and largest staffing services firm specializing in
accounting and finance.
Among executives who said they plan to hire in the third quarter, 36 per
cent reported business growth or expansion as the primary factor driving
hiring demand. Financial systems upgrades was the second most commonly cited
answer with 30 per cent of the response, followed by regulatory requirements,
identified by 18 per cent of respondents.
"Businesses need highly skilled accounting and finance staff to improve
efficiencies, address regulatory requirements and prepare for growth
opportunities," said Kathryn Bolt, president of Robert Half International's
Canadian operations. "Some employers are gaining a competitive advantage by
tapping the larger pool of skilled professionals now available to upgrade
their teams' abilities and experience level."
Financial executives continue to report difficulty finding highly skilled
professionals for certain functional areas. Twenty-five per cent of CFOs said
audit roles are the most difficult to fill. Twenty-one percent of respondents
said they experience the greatest challenges when hiring for operational
support roles such as accounts payable, credit and collections.

Accounting and Finance Hiring -- By Industry
--------------------------------------------

Among industries, 21 per cent of business services CFOs expect to
increase hiring in the third quarter and none plan to reduce the size of their
accounting and finance workforce, for a net 21 per cent increase. In the
professional services sector, 17 per cent of CFOs anticipate hiring more staff
and 1 per cent expect personnel cutbacks, for a net 16 per cent increase.

About the Robert Half International Financial Hiring Index

First published in 1992, the Robert Half International Financial Hiring
Index was conducted by an independent research firm and is based on more than
270 telephone interviews with CFOs from a random sample of Canadian companies.

About Robert Half International

Robert Half International was founded in 1948 and is traded on the New
York Stock Exchange. Its financial staffing divisions include Accountemps,
Robert Half Finance & Accounting and Robert Half Management Resources, for
temporary, full-time and senior-level project professionals, respectively. The
company has more than 360 staffing locations worldwide and offers online job
search services on its divisional websites, all of which can be accessed at
www.rhi.com.


For further information: Kristie Perrotte, (416) 350-2330,
kristie.perrotte@rhi.com

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Wednesday, May 27, 2009

GE Capital Opens New Canadian Head Office in Montreal - Celebrates ongoing commitment to helping Canadian companies grow

MONTREAL, May 26 /CNW Telbec/ - GE Capital, GE's financial services arm, announced today that it has officially opened a newly designed Canadian head office at 1250, Ren De-L Devesque Boulevard West in downtown Montreal. The company offers Canadian companies customized services regrouped under six commercial platforms: Business Finance, Corporate Finance, Vendor Finance, Fleet Services, Corporate Aircraft Finance and Franchise Finance. The company hosted a reception last Thursday that was attended by over one hundred clients, employees and members of the local business community.

"This ceremony marks an important development for us," said Patrick Palerme, President and CEO, GE Capital Canada. "Our business here in Canada has evolved dramatically since starting up, back in 1986, and is now a very well-established and diversified financial services company. Our growth can be seen in terms of our wide portfolio of businesses, in the number and diversity of our people, and in the variety of our product offerings - so it was time to reflect this development in the physical space of our head office."

Palerme added, "our investment in these new offices underscores our confidence in the long-term growth prospects of Canadian companies and demonstrates our unwavering commitment to providing our customers across Canada with customized financial solutions adapted to their ongoing needs."

In line with the values expressed in GE's ecomagination (http://ge.ecomagination.com/site/) initiative, GE Capital's Canadian head office is a LEED(R) Certification Candidate.

170 employees work at the Montreal head office and a little over 400 more are working in 20 other offices across Canada. To view the locations of its Canadian offices, please visit the GE Capital Canada website at: http://www.gecapital.ca/en/company/offices.asp.

About GE Capital Canada GE Capital Canada (http://www.gecapital.ca) is a leading provider of financial as well as fleet management solutions to businesses operating in a broad range of economic sectors, including construction, transportation, energy and manufacturing. The business' customized solutions include asset based working capital and term financing, cash flow financing, corporate aircraft, franchise and fleet financing, as well as financial solutions and services to equipment manufacturers, fleet operators, distributors, dealers and their end users. With more than 20 offices across the country and access to the resources of the General Electric Company, GE Capital Canada has the ability to deliver innovative solutions for all commercial financing needs.

General Electric (NYSE: GE) is Imagination at Work - a diversified technology, media and financial services company focused on solving some of the world's toughest problems.

-0- 05/26/2009 /For further information: Marina Brzeski, Communications Leader, Canada, GE Capital, (514) 397-5321, marina.brzeski(at)ge.com/ CO: GE Capital Solutions Canada ST: Qu Debec IN: FIN SU: -30- CNW 08:00e 26-MAY-09

Monday, May 25, 2009

Minister of Finance Releases New Credit Card Regulations to Improve Protection for Consumers

Toronto May 21, 2009

Related documents


Delivering on the Government's promise to help consumers of financial products, the Honourable Jim Flaherty, Minister of Finance, today released new proposed regulations aimed at limiting business practices that are not beneficial to consumers and providing clear and timely information to Canadians about credit cards.

"Close to 25 million Canadians have credit cards, and most of them pay their balance in full, which is a great credit to how prudent Canadians are generally," said Minister Flaherty. "Through Canada's Economic Action Plan, we are helping consumers by mandating a 21-day grace period on new purchases made with credit cards during the month, when a full payment is made at the end of that month.

"As for those circumstances when Canadians don't pay off their outstanding balance, we want to ensure they are treated fairly, that interest rates and penalties are clearly shown, and that companies use only appropriate debt collection practices."

The proposed Credit Business Practices Regulations will:

  • Mandate an effective minimum 21-day, interest-free grace period on all new credit card purchases when a customer pays the outstanding balance in full.
  • Lower interest costs by mandating allocations of payments in favour of the consumer.
  • Allow consumers to keep better track of their personal finances by requiring express consent for credit limit increases.
  • Limit debt collection practices that financial institutions use in contacting a consumer to collect on a debt.
  • Prohibit over-the-limit fees solely arising from holds placed by merchants.

In addition, amendments to the Cost of Borrowing Regulations will:

  • Provide clear information in credit contracts and application forms through a summary box that will set out key features, such as interest rates and fees.
  • Assist consumers to manage their credit card obligations by providing information on the time it would take to fully repay the balance, if only the minimum payment is made every month.
  • Mandate advance disclosure of interest rate increases prior to their taking effect, even if this information had been included in the credit contract.

"Understanding interest rates, fees and increases to monthly payments are key challenges many Canadians face when managing their credit cards," said Casey Cosgrove, Director of the Social and Enterprise Development Innovations' Canadian Centre for Financial Literacy. "The measures announced by the government today will contribute to financial literacy by bringing clearer and more transparent information to consumers."

The proposed regulations would apply to credit cards issued by federally regulated institutions. Some provisions in the regulations would have broader application to other financial products, such as fixed- and variable-rate loans and lines of credit.

"These proposed amendments will ensure Canada remains at the forefront of consumer protection in the financial services sector," said Minister Flaherty.

The regulations will be published in the Canada Gazette on May 23, and the deadline for submissions is June 13. Contact information for forwarding comments is provided with the proposed regulations.

___________________________________
For further information, media may contact:

Chisholm Pothier
Press Secretary
Office of the Minister of Finance
613-996-7861

Jack Aubry
Media Relations
Department of Finance
613-996-8080



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The Frontier Times: Canada's Payments Journal
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514-842-0886
info@frontiertimes.ca

Thursday, May 21, 2009

The Canadian Payments Association Launches a Consultation Process on its Long-Term Payments Strategy

OTTAWA, May 20 /CNW Telbec/ - The Canadian Payments Association today launched a national consultation on its draft Long-Term Payments Strategy: Vision 2020, an effort to prepare Canada's national payments framework for the changing nature of payments. The consultation process is founded in broad and sound research regarding payments and payment systems both domestically and internationally. Canada's payment system is central to our country's financial system. The proposed long-term payment strategy is a reflection of the user demands in terms of payment services in Canada and around the world. Retailers want faster and more cost-effective payments. Consumers continue to demand more convenience and broader payment options. Billers want an easier and faster way of compiling the information required with payments to enable straight-through processing. As more companies do business overseas, the CPA also seeks to enable regional interoperability of payments systems. The CPA's proposed strategy is to provide a common foundation to enable its members to competitively deliver modern payments services and offerings to Canadians and it is supported by four main pillars: - Facilitating Electronic Payments - Promoting Domestic and International Interoperability Standards to make payments more efficient; - Modernizing the CPA's regulatory framework to reflect new market and business realities; and - Offering new value-added services to CPA members and all users of Canada's payment system "These are just some of the issues at the heart of the CPA's new consultation process and Long Term Payment Strategy," said president and CEO Guy Legault, "The CPA's Payments Strategy will continue to evolve over time, based on the input of the users of our systems. I encourage all stakeholders to participate in our consultation process and to take part in building a renewed payments system for Canada." As the strategy will set the direction for the association, it will be put through a rigorous public consultation process. This process for CPA members, stakeholders and the public is set to begin later this month and will include webinars, written consultation, and five "town-hall" sessions across Canada. The CPA believes this research and feedback will strengthen the strategy and will lay the solid foundation for efficient, safe and sound clearing and settlement systems, which balances the interests of all its users for years to come. More information on the CPA's Long-Term Payments Strategy: Vision 2020 can be found on the CPA's website at www.cdnpay.ca The Canadian Payments Association (CPA), created by an Act of Parliament in 1980, operates Canada's national clearing and settlement systems; facilitates their interaction with other systems involved in the clearing and settlement of payments; and facilitates the development of new payment methods and technologies. It promotes the efficiency, safety and soundness of the clearing and settlement systems, taking into account the interests of users. Its current membership comprises virtually all of Canada's bank and non-bank deposit-taking financial institutions. In 2008, the CPA's systems cleared and settled transactions averaging $203 billion each business day.

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Wednesday, May 20, 2009

CPA Draft Long-Term Payments Strategy VISION 2020

Draft Long-Term
Payments Strategy
VISION 2020
A message from
the President and CEO
Canada’s payment system is central to our country’s financial system. It may not be top of
mind in discussions on the state of the Canada’s financial sector but the payments clearing
and settlement system in Canada has indeed showed its resilience throughout the economic
turmoil of the past 12 months.
The payments environment in which Canadians, businesses and governments operate is
certainly a dynamic one. Consumers continue to demand more payment options. Technological
innovations will continue to foster the development of new payment products and services.
Encouraging this innovation is at the core of the Canadian Payments Association’s legislated
mandate. Over the last few years we have been actively engaged in the promotion of
electronic payments. The CPA has revised and implemented new rules for pre-authorized
debits, conducted consultations on a proposed clearing framework for chip-based PIN-less
Point of Sale debits and is well on its way in its review of enhancements to the bill payment
clearing framework.
As the custodians of our national clearings and settlement systems, the Canadian Payments
Association will continue to play a leadership role in providing a safe and efficient clearing
and settlement system to meet the current and future payment needs of Canadians.
Payment system users are demanding more in terms of payment services, here in Canada but
also around the world. Retailers want faster and more cost-effective payments. Consumers
will continue to demand more convenience and more payment options. Billers want an easier
and faster way of compiling the information required with payments to enable straight-through
processing. As more and more companies do business overseas, we also need to ensure
regional interoperability and integration of payments systems becomes the standard.
These are but some of the issues that are at the heart of the CPA’s new consultation process
and Long Term Payment Strategy.
The CPA’s Payments Strategy will continue to evolve over time, based on the input of the
users of our systems. I encourage you as stakeholders to take part in our consultation process
and to take part in building a renewed payments system for Canada.
VISION 2020 02
As part of our consultation and outreach activities we will organize a series of
web-based seminars in June, followed by townhall meetings across the country in order to
secure your feedback and opinions.
I know all of us at the CPA look forward to working with our members and stakeholders
as well as all the users of our national payments systems to build a payment strategy for
the future.
Guy Legault
President and CEO
Canadian Payments Association
03 VISION 2020
Contents
I – EXECUTIVE SUMMARY:
DEVELOPING THE STRATEGY 6
II - BACKGROUND: THE EVOLUTION OF THE CPA’S BUSINESS AND CHANGE DRIVERS 10
III - CPA: MANDATE & VISION 16
CP
A MANDATE 17
CP
A VISION 17
IV – CPA STRATEGY 18
CPA STRATEGY STATEMENT 19
CPA PAYMENTS STRATEGY OBJECTIVES 19
CPA FOUR-POINT PAYMENTS STRATEGY 20
V – THE SOLUTION PATH 28
VI - THE SOLUTION PATH TIMELINES 33
GLOSSARY AND APPENDICES 34
VISION2020
05
Executive Summary:
Developing the Strategy
07
“The CPA’s vision
is to play
a leadership role
in providing
a safe and efficient clearing and settlement system
to meet the current
and future
payment needs
of Canadians.”
In 2008, the CPA embarked on a comprehensive exercise to develop a long term strategy for its payment systems. The purpose of such introspection is to monitor payment system developments and related issues in Canada and internationally to ensure that the framework for clearing and settlement continues to serve the needs of all participants and the Canadian public.
In this regard, benchmarking surveys were conducted with the CPA’s international counterparts, including payment organizations in Australia, Ireland, Japan, Netherlands, South Africa, the United Kingdom, and the United States. In addition, a needs assessment survey was conducted with CPA members and strategic planning sessions were held with members and stakeholders. Further, the Board’s work in this area has identified themes to be further explored. These combined findings serve as the basis for defining the CPA’s future direction.
The purpose of the CPA’s long term payments strategy is to build on the CPA’s mandate and provide a framework for the innovation and progress of payments cleared and
settled through the Association’s systems.
More specifically, the Payments Strategy aims to:
Promote• greater efficiency in the payments system by facilitating further growth of electronic payments. In doing so, the CPA plans to review current policies and rules, identify obstacles or gaps, and where appropriate, adapt the rules to address new developments in these areas;
Provide • a common foundation of interoperable standards to facilitate members’ sending and receiving of payments with domestic and international partners;VISION2020
08
• Modernize the CPA’s regulatory
framework to embrace changing market
participants, innovative payment methods,
while maintaining safety, soundness and
efficiency of clearing and settlement in
the interests of all users;
• Enable the efficient, responsive, secure,
cost effective delivery of clearing and
settlement arrangements via CPA core
systems; and
• Enhance the CPA’s value proposition
to members by providing value addedservices
to fill gaps in the payments
market place.
The CPA’s Payments Strategy will
continually evolve over time – with this
document being reviewed and updated on
a regular basis. At this stage, the Strategy
includes statements of principle, specific
actions, and a number of tightly focused
reviews of key issues. The reviews are
consistent with the CPA’s commitment
to move forward on the basis of an
objective evaluation of the facts and full
consultation.
Over time the CPA will “block in” firm
objectives identified following the approval
of position papers and business cases, in
accordance with the CPA’s strategic lifecycle
methodology. The CPA is committed
to keeping its Board, members and
stakeholders informed as progress on the
Payments Strategy evolves.
VISION 2020
Key Steps
2008
• Benchmarking surveys
conducted with
CPA’s international
counterparts
• Needs assessment
conducted with CPA
members
• Strategic planning
sessions held with
members and
stakeholders
• Board identification of
themes to be further
explored
Spring 2009
• Publication of Vision
2020
• Launch of consultation
Summer/Fall 2009
• Ongoing consultation
with stakeholders
09
“The CPA is committed
to keeping its
Board,
members and stakeholders
informed
as progress on the
Payments Strategy
evolves.”
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08
Background:
The Evolution of the CPA’s
Business and Change Drivers
11
At the CPA’s inception in 1980, Canada’s retail clearing systems were mostly paper-based and performed by a handful of chartered banks and other non-bank deposit-taking institutions (i.e. trust companies, credit union centrals) – these players formed the CPA’s membership, as per legislation. As a result, the CPA’s rules and governance structure were developed on a basis of mutual trust between a few homogeneous members, most of which faced similar market conditions and risks and were regulated financial institutions.
With the technological developments of instant communication and the changing
attitudes of consumers in managing their own funds, market entry barriers to the payments marketplace have been reduced. Over the last decade, these change drivers have led to the fragmentation of the payments value chain. As CPA member institutions looked to new payment service providers (PSP’s) to out-source traditional lines of payments business, this created an incentive for non-traditional payment participants to emerge, which gave rise to the introduction of innovative products and services that challenged traditional payment models.
The Payments System Historically
Front end(originate)Payments(validate)Application(capture info)ExchangeClearingSettleMembers in competition with PSPs(CPA does not participate)Members in competition with PSPs(CPA has limited policy role)CPA partnership with membersCPA owns and operatesOriginateValidateCaptureinfoExchangeClearingSettleHistorical FI business
The Payments System Today
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12
It is important to note that some schemes operating in Canada only fall partially inside the scope of the CPA’s by-laws and rules. In the case of Interac and some third party payment processors like Internet giant PayPal, the systems operate separately but rely on the CPA’s systems for clearing and settlement; as such, payments flowing through these systems are subject to specific provisions of the Association’s rules and standards. In other cases, such as for credit cards and foreign exchange through the Continuous Link Settlement (CLS), the CPA is only used for Large Value Transfer Settlement (LVTS) settlement. For on-us transactions, the CPA is not involved.
“On-us transactions” involve two accounts held at the same FI, whereby funds move from one account at the FI to another account at the same FI and therefore do not enter the clearings.
Today, based on CPA members’ anecdotal evidence, the CPA clears roughly 35% of all payments initiated in Canada.VISION2020
The CPA Clears Roughly 35% of all payments initiated in Canada
USBE
System
ACSS
System
LVTS
System
USBE
System
CPA Domain
Stored Value
Scheme, e .g.
Dexit
Interac
ATM/POS
e.g.
PayPal
Interac Online
Securities
(CDS)
Foreign
Exchange
(CLS)
Credit Cards
On-us transactions
13
The Payments Landscape
in 2020
“Globally, the highest growth is expected in electronic payments, which are expected to grow to about 85% of all non-cash payments.”
Growth of Electronic
Payments
From 2000 to 2010 global payment volume is expected to increase to 330 billion, with the growth not expected to spread evenly across payment types.1 The highest growth is expected in electronic payments, which are expected to grow globally to about 85% of all non-cash payments – with consumer use of payment cards representing the highest increase. Cheque volumes over the same period are predicted to be down nearly 70% globally.2 From 1999 to 2010, Canadian payment card activity is expected to have doubled to about 67% and electronic payments are projected to be approximately 90% of all non-cash payments; cheque volumes are projected to be down 37%.3 Some nations, such as the Netherlands, have already mandated the virtual elimination of cheques, while others, like the United Kingdom (UK) and Australia have outlined broad strategies to manage the decline – and eventual demise – of cheques.
Interoperability Standards
At the same time, the global economy continues to drive efficiencies in both domestic and international payments systems. International trade expansion is growing the demands for international payments and putting traditional international payments models under pressure. Many countries are moving towards the adoption of new international standards and technology to become more integrated and to permit more efficient cross-border payments.
1 TowerGroup, Global Payments: Trends, Opportunities, and Impact on the Canadian Payments Industry, February 2008
2 Payments Industry Environmental Scan 2007- CPA, June 2007.
3 Global Payments: Trends, Opportunities, and Impact on the Canadian Payments Industry –
TowerGroup, February 2008.
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14
Modern Framework and
Systems
“The CPA expects that the
Canadian payments landscape
will evolve over the next
ten years towards highly
automated, highly secure and
highly interactive payments
clearing and settlement
processes and systems.”
Further, increasing standardization and
competition is expected to continue
commoditizing payments. Canada’s
Automated Clearing and Settlement
System (ACSS), as well as the framework
of rules that underpins it, is being run as a
series of bilateral arrangements. As such,
Financial Institutions operations should
recognize and be prepared to cope with
the ever-increasing transaction loads of
the growing electronic payment trend.
More efficient centralized architectures, as
utilized in most nations with large electronic
funds transfer (EFT) volumes, should be
carefully considered in light of the ongoing
changes in this industry. 4
Finally, developments in payments
processing (i.e., clearing and settlement)
are expected to be much more responsive
to the requirements of users. Consumers
and corporate clients will wield increasing
levels of market power with financial
institutions and payment service providers
in satisfying their payment needs.
In summary, the CPA expects that the
Canadian payments landscape will
evolve over the next ten years towards
highly automated, highly secure and
highly interactive payments clearing and
settlement processes and systems.
4 Tower Group, ibid
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The Changing Landscape
In just 10 years, from 1999
to 2010, Canadian payment
card activity is expected to
have doubled to 67%, and
electronic payments are
projected to be 90% of all
non-cash payments.
Cheque volumes are projected
to be down 37%.
15
“In Summary, the CPA expects
that the Canadian payments landscape
will evolve over the next ten years towards
highly automated, highly secure and highly interactive
payments clearing and settlement
processes and systems.”
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CPA:
Mandate and Vision
17
The Canadian Payments Association (CPA) is a not-for-profit statutory corporation primarily responsible for establishing and operating Canada’s payments clearing and settlement systems, as well as facilitating the development of new payment methods and technologies. Through a network of committees that bring together representatives of CPA members and stakeholder groups, the CPA develops and implements the rules that apply to the clearing and settlement of different types of payments between its member financial institutions. As per the CPA’s public policy mandate, these rules and the related processes ensure that the Canadian payment system is safe, sound, and efficient, and takes into account the interests of users.
CPA MANDATE
(a) To establish and operate national systems for the clearing and settlement of payments and other arrangements for the making or exchange of payments;
(b) To facilitate the interaction of its clearing and settlement systems and related arrangements with other systems or arrangements involved in the exchange, clearing or settlement of payments; and
(c) To facilitate the development of new payment methods and technologies.
In doing so, the Association will promote the efficiency, safety and soundness of the clearing and settlement systems and will take into account the interests of users.
CPA VISION
“The CPA is to play a leadership role in providing a safe and efficient clearing and settlement system to meet the current and future payment needs of Canadians.”
In support of its vision, the CPA embarked on a comprehensive exercise to develop a long-term strategy for CPA payments. The CPA developed a strategy based on key values it seeks to provide to its membership, including cooperative industry forums, forward looking objectives in step with the payments industry evolution, and flexible payment frameworks to foster competition amongst payment service offerings.
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CPA Strategy
19
CPA STRATEGY STATEMENT
“The CPA provides a common foundation to enable its members to competitively deliver modern payments services and offerings to Canadians.”
Increasing standardization and competition is commoditizing the payments clearing and settlement infrastructure. As payment technology and products become closer to the end-user customer, competition between FIs increases for product differentiation and value-added services related to front-end products. This is where investment in competitive products and services is applied. Collaboration and a common foundation for the underlying payments infrastructure can thus be an effective tool in driving greater efficiencies and economies of scale in members’ down-stream front-end product offerings.
The CPA will continue its focus on the collaborative development of rules and standards and a national approach to the development of a safe, sound and efficient payments infrastructure that best serves the Canadian public. This allows for a more standardized processing in members’ back offices, leaving the payment delivery channels to end-user customers, as the point of differentiation and competition between financial institutions.
CPA PAYMENTS STRATEGY OBJECTIVES
“The CPA Payments Strategy seeks to establish and articulate a dynamic plan that systematically addresses CPA payments evolution ten years into the future.”
To enhance the value-added proposition of a robust and efficient common foundation infrastructure for payments clearing and settlement, the CPA Payments Strategy seeks to establish and articulate a dynamic plan that systematically addresses CPA payments evolution ten years into the future, in order to:
(a) Keep CPA payments systems and framework relevant, accommodating, and modern;
(b) Promote continued CPA payment streams innovation and growth; and
(c) Provide efficient and unencumbered payments systems that enable reliable, secure, convenient, and competitive payment types.
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20
CPA Four-Point Payments Strategy
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1
2
3
4
Electronic Payments
Enabling Framework
and Systems
Domestic and International
Value Added Services Interoperability Standards
Strategic Statement:
The CPA provides common foundation
to enable its members
to competitively deliver modern
payments services and offerings to Canadians
21
The CPA’s Strategy Objectives are anchored in four pillars of work initiatives, as illustrated to the left. When the projects under the four pillars are implemented the CPA will enhance its relevance and provide improved clearing and settlement-related services to members. Specifically the CPA will strengthen its sphere of influence by:
Promoting modern, innovative, safe and sound frameworks to support the continued growth of electronic payments – which are expected to grow globally to about 85% of all non-cash payments;5
Driving efficiencies in both domestic and international payments systems by moving towards the adoption of industry-recognized payment and remittance standards, and integrated frameworks that permit more efficient cross-border payments for the CPA’s members;
Modernizing the CPA’s regulatory framework and supporting core systems to reflect new clearing arrangements and business models, and consider new market participants and innovative payment products
Seeking new value added service to allow the CPA to formally share its knowledge of payments with the industry and work with its members in meeting the needs of payment system participants in this dynamic marketplace.
5 Tower Group, Global Payments: Trends, Opportunities, and Impact on the Canadian Payments Industry, February 2008VISION2020
1
2
3
4
22
“The CPA plans to promote
the migration of paper
payments to electronic
payments by researching
viable alternatives to
cheques, enhancing the
existing electronic payments
framework, and facilitating
new and emerging electronic
payment instruments in its
framework.”
1. Promote Electronic Payments
To promote greater efficiency in the payments
system, the CPA is seeking to facilitate further
growth of electronic payments.
In doing so, the CPA plans to review current
policies and rules, identify obstacles or gaps,
and where appropriate, adapt the rules to
address new developments in these areas.
The CPA plans to promote the migration of
paper payments to electronic payments by
researching viable alternatives to cheques,
enhancing the existing electronic payments
framework, and facilitating new and
emerging electronic payment instruments in
its framework.
The CPA Member Needs Assessment Survey
showed that initiatives to migrate paper
payment forms to electronic – particularly for
businesses – are the highest priorities for CPA
members. Overall members proved to be in
favour of modernizing the CPA framework in
relation to electronic payments, enhancing
current electronic payment instruments,
and developing viable electronic payment
alternatives to business and consumer
cheques.
In Canada, some 70-80% of all commercial
payments are initiated as cheques, a practice
predominantly supported by mid-sized
businesses. Large corporations already
see the advantages of automation and are
increasingly adopting electronic payments.
However, the need for integrated remittance
and payment data is still strong and an
essential element in providing a tighter and
more cost effective method of payment
reconciliation.
What Other Countries
are Doing
Australia’s “Pay Anyone” is a
banking facility that enables
one-off direct credits to be
initiated over the phone or
online that can be paid to
other accounts held at virtually
any financial institution in
Australia.
In the U.K., the “Faster
Payments” system offers bill
payments, credit transfers, and
one-off payments (including
person to person) that are
settled the same day or faster.
VISION 2020
From the consumer perspective, the cards industry is continually seeking new methods of payments initiation to migrate traditional cash and person to person payments to the debit networks.
Based on the International Benchmarking research, other countries are also actively involved in growing the use of electronic payments and reducing paper payment volumes. Many countries have made strides in this regard such as Australia with its “Pay Anyone” system and the UK’s “Faster Payments” .
“The CPA is seeking to provide interoperable standards to facilitate members’ sending and receiving of payments with domestic and international partners.”
2. Domestic and International Interoperability Standards
As standards for payments messages are significant enablers in innovation, global interoperability, competition, efficiency, and cost reduction, the CPA will facilitate the progressive move to message standards alignment for domestic, North American, and global interoperability and play an active role in payments standards development.
The CPA Member Needs Assessment Survey demonstrates that straight through processing (STP) and interoperability are high industry priorities. Addressing STP for Automated Funds Transfer (AFT) payments and for Large Value Transfer Systems (LVTS) payments were both rated highly as key industry objectives. Members also recognized that developing STP could be an important part of a cheque reduction strategy.
Growth in global trade by companies and international transactions by consumers has resulted in more cross border payments being demanded at continually decreasing costs. For stakeholders, moving towards interoperable standards and common remittance standards can lead to improved efficiencies in back-office payment processing and reconciliation practices, and increased possibilities for straight-through-processing (STP).
The development of standards for other types of domestic payments has been established as a goal for many countries. Similarly, cross-border interoperability for low-value payments is a goal for most countries and is being pursued through international projects like Single Euro Payments Area (SEPA) and the International Payments Framework (IPF).
The CPA will study opportunities for developing an STP strategy for domestic and international payments, focusing on both retail and wholesale payment systems.
23VISION2020
The CPA is seeking to provide interoperable standards to facilitate members’ sending and receiving of payments with domestic and international partners. Such interoperable standards would take into consideration the International Standards Organization (ISO) 20022 (adopted mainly in Europe) and the United States (US) Electronic Payments Network (EPN)-driven STP 820, and would leverage international efforts such as the International Payments Network (IPF).
“The CPA will modernize the CPA’s regulatory framework – through the review of its Rules, By-laws and legislation – to reflect new clearing arrangements and business models, innovative payment products, and to consider new market participants.”
3. Enabling Framework and
Systems
The robustness and flexibility of the CPA framework of rules and processes will be enhanced in order to address the dynamic payments landscape and the needs of its users. The CPA will enhance its current clearing and settlement core systems and develop a long term system evolution and renewal plan in keeping with evolving electronic payments and interoperability standards.
The CPA will modernize the CPA’s regulatory framework – through the review of its Rules, By-laws and legislation – to reflect new clearing arrangements and business models, innovative payment products, and to consider new market participants (e.g. Payment Service Providers and money service providers). These issues will be reviewed with a focus on ensuring the efficiency, safety, and soundness of the CPA’s clearing and settlement system framework. It is anticipated that the basis for the CPA’s proposed amendments to the government in the coming financial legislative reviews will be driven by its strategic direction.
The International Benchmarking research showed a trend towards increased flexibility in clearing arrangements for direct and indirect clearers, as well as, in certain cases, openness to new market players’ participation in clearing and settlement systems. For stakeholders, modernizing the CPA’s enabling framework may mean more flexibility in payment processing arrangements and enhanced transparency in payment processing practices.
In addition, the CPA will continue to enable the efficient, responsive, secure, and cost effective delivery of clearing and settlement arrangements via the CPA’s core systems. In doing so, the CPA is conducting a health check of its current systems which will be leveraged as part of the core system renewal plan moving forward.
24VISION2020
In the CPA Member Needs Assessment Survey, most CPA members have indicated that it is important for the industry to develop faster payments and reduce clearing and settlement times. Internationally many countries studied already have or are working towards same-day or faster settlement of certain payment types.
A revitalized and competitive payments infrastructure should allow members to provide corporate and consumers’ cost effective, rapid and easily accessible Electronic Funds Transfer (EFT) network and help further manage the transition from paper cheques to electronic transactions.
“In looking to enhance its value proposition to members, the CPA could provide value added-services such as payments training and education and potentially fraud monitoring to fill current gaps in the payments market place.”
4. Value-Added Services
Given the increasing complexity of payments processes and arrangements and as a result, risk, the CPA will seek to more formally share its knowledge and expertise with members and stakeholders to enhance the understanding of the national payments system.
In looking to enhance its value proposition to members, the CPA could provide value added-services such as payments training and education and potentially fraud monitoring to fill current gaps in the payments market place. In the CPA Member Needs Assessment Survey members identified payments training and education and monitoring fraud and security issues as desirable CPA value added services.
In reviewing the activities of comparable payment organizations abroad, fraud monitoring was identified as an initiative undertaken by the Australian Payments Clearing Association (APCA), Irish Payment Services Organization (IPSO), and the UK’s Payments Council. It is also common for payment organizations to provide education in their areas of expertise.
CPA education initiatives could include Canadian payments education and training for members and stakeholders on CPA rules, systems, payments, and services. Some education efforts could also be directed specifically to end users to help inform them on payment instruments available to them. It is believed that fostering informed users will help promote electronic payments.
25VISION2020
26
For more information on the CPA’s research, please visit the CPA’s
website for:
 International Comparator Survey Results: Governance,
Funding & Membership
 International Comparator Survey Results: Core Systems and
Interoperability International
 International Interoperability Environmental Scan
www.cdnpay.ca
An overview of these documents is provided as Appendix 1, 2 and
3, respectively.
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27VISION2020
The Solution Path
Project Name
Description
End Dates
1- Electronic Payments
1. Paper to Electronic
Migration (B2B and
Consumer)
(Strategic)
Promote the clearing and settlement of electronic alternatives as substitutes
to cheques.
Cheque use is in decline. That decline • needs to be actively managed; although viable alternatives exist for cheques, in many areas “gaps” continue to exist. Conduct research on these gaps to identify viable alternatives.
Domestic standards for remittance • data are imperative to moving paper payments to electronic forms. This initiative is detailed in section B.
Research & identify new potential uses • for AFT Payments.
Member decision in 2010
2. Enhancing Electronic
Payments Framework
(Tactical)
Promote use of electronic payments, and facilitate and integrate innovation
into CPA framework.
Pre-Authorized Debits•
POS Rule E1 enhancements (i.e. • Pre-funded Debits Products and chip amendments)
Electronic Bill Payments Framework•
2009•
2009

Member decision in • 2010
3. Facilitation of Emerging
Payments
(Strategic)
Increase application and significance of CPA’s framework to emerging payment products or new payment instruments.
Mobile Payments Research Paper•
PIN-less POS Payments•
chip applications research•
2009•
2010•
Member decision in • 2010
2011•
29
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30
Project Name
Description
End Dates
2 - Domestic and International Interoperability Standards
1. Domestic Remittance
Data Standards (Tactical)
Provide a framework for interoperable standards to facilitate the capture of payment and remittance details to enable members to offer complete
automated processing of payments without the need for re-keying and
reformatting data.
Remittance Data standards review

Straight-Through Processing (STP) study • for wholesale payments
STP study for retail payments•
Member dicision in 2009•
Member decision in 2011•
Member decision in 2011•
2. Adopting Global
Standards
(Strategic)
Provide a common foundation of interoperable standards to facilitate members’ sending and receiving of payments to international partners.
Global to domestic standards Mapping • (i.e. CPA standards to ISO 20022, EPN 820)
International Payments Framework•
Member decision in 2009

2012•
3- Enabling Framework and Systems
1. Modernize CPA Legal
and Regulatory
Framework (Strategic)
Modernize CPA regulatory framework to address changing market participants, innovative payment methods, while maintaining safety, soundness, and efficiency.
Multiple Clearing Arrangements•
Multiple FI numbers•
Default Rules – Phase I•
Payments Industry Competitive • Landscape Assessment
Credit Union Framework Review•
2009•
2009•
2009•
Member decision in 2009

2010•
(continued on next page)
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31
Project Name
Description
End Dates
3- Enabling Framework and Systems (continued)
1. Modernize CPA Legal
and Regulatory
Framework (Strategic)
Direct Clearer /Group Clearer/Clearing • Agent & Tiered Structure/Membership Review
Default Rules – Phase II•
Review Membership, Governance and • Funding
Principled-based Framework

2011

2011•
2012

Member decision in 2012•
3. Government’s
Financial Legislative
Review
(Tactical)
Contribute to the CPA’s long term plan by identifying, assessing, and recommending legislative amendments to the Canadian Payments Act in preparation for the Government’s 5-year financial legislative review
2012 Financial Legislative Review•
2017 Financial Legislative Review•
2010•
2015•
3. Enhancing the CPA’s
Current Clearing and
Settlement Systems
(Tactical)
Enable the efficient, responsive, secure, cost effective delivery of clearing and settlement arrangements via CPA core systems.
LVTS 7.0, Alert Monitoring, & Remote • Access
Health Check for all systems•
ACSS Version 12 (Government 799 • Processing)
LVTS Priority Payments•
End-to-end LVTS payment timeframes

More Frequent LVTS Settlement for • Electronic Payments
LVTS Collateral Requirements

2009/2010

2009•
2010

2010•
Member decision in 2010•
Member decision in 2010•
Member decision in 2011•
(continued on next page)
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32
Project Name
Description
End Dates
3- Enabling Framework and Systems (continued)
4. Long Term System
Evolution Plan – Faster
Clearing & Settlement
(Strategic)
Enable payment exchanges betweens FIs to be made more quickly than is occurring today with current business arrangements and technology. For example, some payment types could be exchanged on a same-day, intra-day, or real-time basis.
Inter-day Settlement Review

ACH Review

CPA clearing and settlement renewal • plan
Member decision in 2010•
Member decision in 2011•
Member decision in 2012•
4- Value-Added Services
1. Fraud Monitoring
(Strategic)
CPA to enhance value-proposition to members by monitoring security issues/
fraud trends in relation to payments.
Member decision in 2012
2. Payments Education/
Training (Strategic)
CPA to enhance value-proposition to members by providing educational and/or
training sessions on payment clearing and settlement systems and related
issues.
Member decision in 2012
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33
The Solution Path TimelinesVISION2020
The Gantt chart below includes all the projects currently underway and planned as part of future payments strategy activities.
Glossary of Terms
35
Business-to-business (B2B)
A term commonly used to describe transactions between businesses, as opposed to those between businesses and other groups, such as business-to-consumers (B2C). For the purposes of this document B2B transactions include business-to-government transactions.
CPA regulatory Framework
The CPA regulatory framework comprises its governing Act, Regulations and by-laws, as well as its framework rules and standards.
Clearing & Settlement Core Systems
The CPA “systems” may be defined as any electronic service or offering that either facilitates or operates the clearing and settlement of payments, including the system operating rules and standards. Examples include the Automated Clearing and Settlement System (ACSS), Large Value Transfer System (LVTS), and the U.S. Bulk Exchange (USBE).
Compliance
CPA Member adherence to CPA objects, including its governing Act, by-laws, rules and standards.
End-to-End Processing Times
Once a payment is initiated by the payor, the total processing time required for the funds to become available to the payee.
EPN STP 820
This standard was developed by the Electronic Payments network (EPN), one of two ACH processors in the United States. The objective is to standardize the use of ten remittance fields to ease payment file integration. This standard is approved by the American National Standards Institute (ANSI), and is a derivation of the electronic data interchange (EDI) X12 820 standards commonly used for payment files within the United States.
Faster Clearing and Settlement
Payment exchanges between Financial Institutions can be made more quickly than is occurring today with current business arrangements and technology. For example some payment types could be exchanged the same day or in real-time.
Financial Legislative Review
Every five years the Federal Government of Canada embarks on a review of financial legislation.
Global Interoperability
Describes a situation in which payment instruments belonging to a given payment scheme may be used in other countries and in systems installed in separate schemes. Interoperability requires technical compatibility between the systems, but can only take effect where commercial agreements have been concluded between the schemes concerned.
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36
Governance
Payment System Governance arrangements may be defined as encompassing the set of relationships which exist between a payment system’s owners, governing body, management and other payment system stakeholders. These arrangements provide the structure through which a payment system’s overall objectives are set and achieved, how risk is monitored and assessed and how performance is optimised.1
ISO 20022
This is an extensible Markup Language (XML) schema for the development of financial messages. The schema is driven by payments industry bodies including SWIFT and the Treasury Workstation Interface Standards Team (TWIST). ISO 20022 is being adopted as the framework for payments messaging under SEPA rules throughout Europe, and for the new SWIFT MX message category.
International Payments Framework (IPF)
The International Payments Framework (IPF) concept establishes a membership organization providing rules, standards (ISO20022), operating procedures and guidelines to improve non-urgent cross-border payments through a member service agreement binding members to the operating rules.
The rules will enable interoperability between existing domestic or regional payment systems (AFT in Canada), the ability to exchange transactions in multiple currencies and settlement procedures leveraging existing practices. The rule-making body of the IPF would provide an overlay structure that enables interoperability between Clearing and Settlement Mechanisms (CSMs) and banks, with bank members providing transaction volume.
Non-FI payment providers
In today’s payments environment there is no longer a simple array of direct clearers and indirect clearers that interact to accommodate Canadian payments. There are a variety of non-FIs that may be involved with payments such as connection service providers, acquirers, third-party payment scheme operators, and non-bank payment service providers that may play a role in facilitating the capture, processing, clearing, and settlement of payments.
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1 Bank of International Settlement (BIS), Core Principles for Systemically Important Payment Systems, p.9
37
Retail Electronic PaymentsFor the purposes of this document, retail electronic payments are mainly consumer payments or payments that are of a low value. In general terms, these payments are not made through the CPA’s Large Value Transfer System (LVTS).
Risk Management
A systematic process that involves identifying and assessing risks, evaluating risks against the organization’s stated risk tolerance, communicating those risks and developing strategies to prevent any negative event from occurring and contain or minimize potential harm, while providing reasonable assurance regarding the achievement of the CPA’s objectives.2
Strategic
The formal pro-active consideration of an organization’s future course or direction.
Straight-Through- Processing (STP)
The capture of payment and trade details directly from front-end trading systems and complete automated processing of confirmations and settlement instructions without the need for re-keying and reformatting data.
Tactical
The formal consideration of “how” to implement an organization’s direction.
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2 Canadian Standards Association, Risk Management: Guidelines for Decision-Makers - A National Standard of Canada (CAN/CSA-Q850-97), 2002; IRGC, An Introduction to the IRGC Risk Governance Framework, 2008; Presidential/Congressional Commission on Risk Assessment and Risk Management, 1997; Treasury Board of Canada Secretariat, Integrated Risk Management Framework, 2001; Committee of Sponsoring Organizations of the Treadway Commission (COSO), Enterprise Risk Management - Integrated Framework, 2004; KPMG LLP, Best Practices in Risk Management: Private and Public Sectors Internationally, 1999.
Appendix 1
International
Benchmarking Survey
Results
- Governance, Funding &
Membership -
Executive Summary
The efficient functioning of payment clearing and settlement systems, allowing transactions to be completed safely and on time, makes a key contribution to national economic performance. Correspondingly, their ongoing development and governance, specifically collective decision-making processes, is crucial to continued economic and financial well-being.
The Canadian Payments Association’s (CPA) has embarked on a comprehensive exercise to develop a long term plan for its payment clearing and settlement systems. In support of the comprehensive exercise, the CPA conducted an international benchmarking survey with comparable payment organizations abroad to investigate how these entities are dealing with key areas of strategic importance, including governance, funding and membership. Based on the responses received, the CPA conducted a comparative assessment of itself against eight (8) international payment 1, organizations with the following results:
Governance: Oversight, Mandate & Stakeholders
The CPA’s model is common compared to the majority of the organisations reviewed in that:
Public policy objectives form part of the CPA’s mandate.⇒
The CPA ensures stakeholder engagement by establishing a self-sponsored consultation ⇒ process.
The CPA’s model is uncommon compared to the majority of the organisations reviewed in that:
The Minister of Finance, rather than the central bank, has assumed primary oversight ⇒ responsibility for retail payment clearing and settlement systems.
The CPA’s retail payment clearings are ⇒ not separated into distinct clearing schemes, with a specific and separate governance structure and funding model for each, which can allow direct and indirect participants the flexibility to opt in and out of certain clearing
1 � � � � � � � � � � � � � � Australian Payments Clearing Association (APCA) – Australia; Association for Payment Clearing Services (APACS) – United Kingdom; Payment Association South Africa (PASA) – South Africa; Irish Payment Services Organisation (IPSO) - Ireland; NACHA – United States; The Federal Reserve Bank (FRB) – United States; Equens – Netherlands; Japanese Bankers Association (JBA) – Japan.
02
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03
schemes and/or have different clearing arrangements from one scheme to the next (e.g. join as a direct or indirect participant depending on the clearing scheme).
The CPA maintains a dual role as a system operator and policy maker. The majority of ⇒ the organisations reviewed retain only one role, with the bulk of these acting as a policy maker.
The CPA’s mandate is set explicitly in legislation.⇒
Governance: Board Structure
The CPA’s model is common compared to the majority of the organisations reviewed in that:
Though membership classes and the allocation of seats to each may vary, representation ⇒ on the CPA’s Board of Directors is based on membership classes, with non-transaction based voting entitlements at the Board.2
Independent directors are appointed to the CPA’s Board – a practice more commonly ⇒ employed where non-transaction-based voting rights are utilized.
The CPA’s model is uncommon compared to the majority of the organisations reviewed in that:
Central banks do not generally retain an ex officio right of representation and vote on the ⇒ Board.
The trend is for the President and CEO to serve as an ex officio Director on the Board.⇒
The Chair of the Board is generally an elected member Chair or an Independent Chair.⇒
2 Non transaction based voting: A practice whereby one director is entitled to one vote, rather than to a percentage of the vote based on the percentage of total volume his/her institution clears through the payment system.VISION2020
Membership
The CPA’s model is common compared to the majority of the organisations reviewed in that:
Like the countries reviewed, tiered arrangements are leveraged to grant access to the ⇒ CPA’s retail payment system, the Automated Clearing Settlement System (ACSS), to both direct and indirect members. No trend is discernible within the sample of organisations reviewed in regards to the formal/informal tiering practices of systems.
Informally tiered arrangements are leveraged to grant access to the CPA’s wholesale ⇒ payment system, the Large Value Transfer System (LVTS), whereby only direct participants are recognized in the systems’ rules.
The CPA’s model is uncommon compared to the majority of the organisations reviewed in that:
With only one retail payment clearing and settlement system in Canada and multiple ⇒ clearing arrangements under review3, the CPA does not provide direct and indirect participants the flexibility to have different clearing arrangements for various payment types cleared through the CPA.
The CPA’s membership eligibility remains by and large limited to deposit-taking financial ⇒ institutions4, whereas some of the organisations reviewed allow payment system operators and third-party service providers to become members.
3 The CPA’s policy and rules on multiple clearing arrangements is currently under review. It is anticipated that by Q1 2009, multiple clearing arrangements will be permitted for all electronic payments.
4 In addition to deposit-taking financial institutions, the following are eligible for CPA membership: securities dealers, insurance companies, and money market mutual funds.
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Funding
The CPA’s model is common compared to the majority of the organisations reviewed in that:
The CPA functions on a not-for-profit basis.⇒
The CPA membership dues are primarily based on clearing system volumes.⇒
The CPA derives its revenue almost exclusively from member dues.⇒
For the full report, please visit the CPA’s website at www.cdnpay.ca
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Appendix 2
International Research
& Benchmarking Survey
Results
- Core Systems -
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Executive Summary
The efficient functioning of payment clearing and settlement systems, allowing transactions to be completed safely and on time, makes a key contribution to national economic performance. In this regard, the Canadian Payments Association’s (CPA) has embarked on a comprehensive exercise to develop a long term plan for its payment clearing and settlement systems. In support of the comprehensive exercise, the CPA conducted an international benchmarking survey with comparable payment organisations abroad to investigate how these entities are dealing with key areas of strategic importance, including governance, funding and membership. Based on the responses received, the CPA conducted a comparative assessment of itself against eight (8) international payment organisations1.
The core system research generally revealed that countries around the world are continuing to evolve and improve their payments systems. The countries studied are innovating and addressing domestic and international obstacles to enhance and expand their payments service offerings.
The research supports a widely held notion that European countries, with their need to amalgamate multiple countries and markets, are leaders in payments systems innovation. The research also shows that a surprising number of non-European Union (EU) countries are keeping pace with the European payments system evolution. Countries such as the United States (US), the United Kingdom (UK), Australia, and South Africa have shown their payments industries are motivated to continually invest in and enhance their core systems.
The research on central clearing systems makes a case that the current Canadian Automated Clearing Settlement System (ACSS) features and processes should be reviewed to ensure that Canada does not fall behind international norms. Some countries studied are progressing in areas of development such as faster payments, automated and faster clearing and settlement, and developing viable electronic alternatives to cheques. Given the short-term plans the countries surveyed have for improving their clearing systems it is timely that Canada is beginning to research developing plans of its own.
1 Australian Payments Clearing Association (APCA) – Australia; Association for Payment Clearing Services (APACS) – United Kingdom; Payment Association South Africa (PASA) – South Africa; Irish Payment Services Organisation (IPSO) - Ireland; NACHA – United States; The Federal Reserve Bank (FRB) – United States; Equens – Netherlands; Japanese Bankers Association (JBA) – Japan.
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The Canadian Payments Association (CPA) could consider conducting further research to explore the feasibility and potential costs and benefits of some new clearing system options.
Concepts for consideration include same day clearing and settlement, separate clearing schemes for some retail payments, providing greater remittance information, and expanding research for interoperability and interoperability standards.
In addition the survey provides evidence that as part of a systems review the CPA may want to study the benefits of adopting a multilateral model [such as an automated clearing house (ACH) model] for clearing and settlement. There is some circumstantial evidence presented that suggests multilateral systems may be linked to greater system flexibility and innovation. The countries with a multilateral model were more likely to report that they are developing more efficient systems built around automated settlement and closer international integration.
The wholesale payments system research demonstrated that Canada’s Large Value Transfer System (LVTS) is currently in line with most of the other countries surveyed. Other countries continue to work and invest in improving and modernizing their wholesale payments systems. To keep pace the research suggests that the CPA should continue to pursue straight through processing for business-to-business payments and interoperability with other countries.
For the full report, please visit the CPA’s website at
www.cdnpay.ca
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Appendix 3
Environmental Scan
- International
Interoperability Standards -
Executive Summary
Standards for payments messages have been touted as significant enablers in innovation, global interoperability, competition, and efficiency and cost reduction. The implications for payment system participants, whether they are corporate clients, financial institutions (FIs) or large infrastructure providers, means that these must be looked at closely from a business perspective as well as technological. New developments in standards create opportunities, and risks, for businesses.
Projects such as the Single Euro Payments Area (SEPA) have pushed European payments players to adopt a new standard based on the ISO20022 framework, which takes full advantage of the flexibility and convenience of internet technology. In the United States (US), some larger FIs have moved to adopt the ISO-based standard to ensure interoperability with players abroad; while others have moved to the domestic Electronic Payments Network (EPN) STP 820 standard. This standard is based on a “lighter” version of the full Electronic Data Interchange (EDI) standard. Despite the popularity of the “EDI-light” standard, organisations such as the US’ Fedwire and NACHA are responding to business demand to improve the ability of payment messages to carry invoice detail by considering global interoperability with the new ISO 20022 standard.
Canada has yet to make a decision on which standard to align itself against. Developing the short term business case for standards alignment presents challenges – not the least of which is spending money to replace existing payments message types and technology that may currently meet users’ needs reasonably well. Often the long term view is not taken into consideration which can lead to significant and costly band-aid solutions being applied at a later stage.
There is therefore an even greater need for strategic decisions regarding message standards alignment to incorporate both local and global interoperability. Domestically, Canada needs to consider and plan for the future of message standards with both retail and wholesale payments.
This document provides an overview of Canada’s more common current cross border payment arrangements between Financial Institutions, as well as the leading standards currently being adopted to enhance global interoperability of payments.
For the full report, please visit the CPA’s website at
www.cdnpay.ca
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