On January 27, 2020, Payments Canada Rule E5, Exchange of
Point-of-Service Delayed Authorization Debit Payment Items for the
Purpose of Clearing and Settlement, came into effect, enabling
broader point of sale debit card acceptance. Rule E5 removes the
requirement for merchants to have consistent online connectivity to
accept debit payments. Therefore, merchants may now choose to
provide a good or service to a consumer prior to the transaction
being authorized, and accept the risk that it may not receive
payment for the goods or services provided.
With debit card transactions being the most widely used payment
method (by volume), followed closely by credit card transactions
and cash, there was a recognized need to allow for greater
practicality in the use of debit cards as a form of payment.
According to the 2019 Canada Payment Methods and Trends Report
published by Payments Canada, in 2018, debit card transactions
accounted for the greatest volume of point of sale
