Compliance and Regulatory Overview

Last updated: July 13, 2026

This page explains, in plain language, how PaymentEvolution Corporation approaches key Canadian legal and regulatory requirements. It is a public summary, not a legal opinion, certification or substitute for the agreements that apply to a Service.

1. Payment service provider registration

PaymentEvolution Corporation is registered with the Bank of Canada as a payment service provider under the Retail Payment Activities Act (“RPAA”). The public registry records:

• status: Registered;

• registration date: February 11, 2026;

• trade names: PaymentEvolution and PayEvo; and

• payment functions: initiating an electronic funds transfer at an End User’s request; authorizing, transmitting, receiving or facilitating an instruction for an electronic funds transfer; and holding funds for an End User until withdrawal or transfer.

The current record is available in the Bank of Canada PSP registry.

Registration means PaymentEvolution is listed under the RPAA and is subject to the Bank’s supervision and enforcement for applicable requirements. The Bank of Canada does not license, approve, guarantee or endorse registered payment service providers. Registry details can change; consult the live record.

2. How we classify funds

The legal status of funds follows the facts, not a product label.

• Pending Funding is money we have not finally received. An attempted PAD, a screen balance or a clearing entry is not Client Funds until the money is received as available funds.

• Held Funds is Client Funds resting with us for later withdrawal or transfer. This includes prefunded, future-dated, cancellable and returned amounts, and other funds not subject to an immediate, irrevocable payment flow.

• In-Transit Funds is Client Funds subject to a valid instruction for immediate transfer or withdrawal, after the execution date arrives, while processing is continuing and the End User can no longer cancel, redirect, withdraw or reuse the funds, until completion.

Words such as “pending,” “processing,” “clearing,” “settlement,” “hold period” and “in flight” do not by themselves make funds In-Transit. An immediate transfer may take more than one Business Day and remain In-Transit if it is continuously being processed and every condition continues to be met.

The full, binding test is in section 5.4 of the Master Services Agreement.

3. Safeguarding Held Funds

PaymentEvolution uses an omnibus trust arrangement for Held Funds. Under the Master Services Agreement:

• End Users intend that Held Funds be held in trust;

• PaymentEvolution accepts and holds them as trustee for the principal beneficiary recorded in its end-user funds ledger;

• Held Funds are placed in one or more Safeguarding Accounts used only for safeguarded end-user funds;

• the accounts are separate from PaymentEvolution operating accounts;

• a daily ledger records each End User’s interest and funds status;

• PaymentEvolution does not use principal for operations, lend it, pledge it or treat it as revenue;

• funds transferred between Safeguarding Accounts remain subject to the trust;

• returned funds are safeguarded until returned or made subject to a new immediate instruction;

• shortfalls are investigated and promptly corrected; and

• records and procedures are maintained to support return of funds if PaymentEvolution becomes insolvent.

If an unavoidable processing constraint prevents immediate placement in a Safeguarding Account, the funds are not used for another purpose, are recorded as a shortfall and are placed in the account as soon as feasible and no later than the next Business Day unless law requires earlier action.

The RPAA and its Regulations require more than contract wording. PaymentEvolution maintains a safeguarding framework, reconciliation, legal and operational controls, senior oversight, periodic review and independent review on the schedule required by law. Public terms do not replace those controls.

4. Interest on safeguarded funds

A Safeguarding Account may earn interest or other bank earnings. Under the Master Services Agreement, an End User keeps its full beneficial interest in safeguarded principal and assigns any right to account interest to PaymentEvolution as compensation for the Services and account administration. PaymentEvolution is the income beneficiary under the safeguarding arrangement.

PaymentEvolution may receive interest only where the declaration of trust, account agreement and law permit it, records separate it from principal, reconciliation shows no actual or expected shortfall, enough liquidity remains for payments and returns, and removal cannot delay access to principal. PaymentEvolution will not delay a transfer, safeguarding placement or return in order to earn interest. If law, a regulator or the trust terms require different treatment, that requirement prevails.

5. No bank account or promised deposit insurance

PaymentEvolution is not a bank, does not accept deposits and is not a member institution of the Canada Deposit Insurance Corporation (“CDIC”). A PaymentEvolution Account is not a bank account. RPAA safeguarding is not deposit insurance. Whether funds at an account provider are eligible for deposit insurance depends on the actual account structure and applicable insurance rules. We do not promise beneficiary-level CDIC protection.

6. Operational risk and incidents

PaymentEvolution maintains an operational-risk and incident-response framework designed for the retail-payment activities it performs. The framework addresses governance, system and process risks, third-party dependencies, security, business continuity, detection, response, recovery and lessons learned.

If an incident has a material impact on an End User, another payment service provider or a relevant clearing system, PaymentEvolution gives notices required by the RPAA and its Regulations. Privacy and contractual notices may also apply. Not every outage or failed attempt is a reportable incident; the legal tests and actual impact control.

7. Identity, fraud, sanctions and anti-money-laundering controls

PaymentEvolution may verify clients, signing authorities, beneficial owners, bank information, business activity and source of funds; screen against relevant sanctions and risk sources; monitor Transactions; request supporting documents; restrict access; and report or retain information where law permits or requires.

PaymentEvolution maintains a risk-based compliance program under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, including a designated compliance officer, written policies and procedures, ongoing risk assessment, staff training, prescribed record keeping, periodic effectiveness review, and reporting to FINTRAC where the law requires it.

The exact anti-money-laundering obligations depend on the activities and legal status of the entity performing them. PaymentEvolution does not describe every client, Reseller or Partner as a FINTRAC-regulated entity. Each business must assess its own activities. A Reseller or Partner cannot rely on PaymentEvolution’s status to cover payment functions it independently performs.

We may be legally prohibited from explaining a review, report, delay or refusal in detail.

8. Payroll, tax and employment responsibilities

PaymentEvolution provides payroll technology and the filing or payment administration selected by a client. The client remains the employer, payer and taxpayer and is responsible for accurate employee, compensation, deduction, bank, remittance-frequency and tax information; timely final funding; review and approval; workplace decisions; and compliance with applicable employment and tax law.

Where authorized, PaymentEvolution may prepare or transmit payroll payments, source-deduction remittances and year-end forms. Use of PaymentEvolution does not mean CRA or another authority has certified or approved a client’s payroll, and PaymentEvolution does not provide legal, tax or accounting advice.

9. Privacy

PaymentEvolution handles Personal Information under Canadian federal and provincial privacy law that applies to the circumstances. In general:

• a client controls employee, payee, HR and benefits purposes and PaymentEvolution processes that information to provide the requested Services under the Canadian Data Processing Agreement;

• PaymentEvolution independently handles information needed for Accounts, identity and business verification, fraud, security, billing, legal claims, safeguarding and regulatory duties; and

• the Privacy Policy explains collection, use, disclosure, cross-border processing, retention, security and individual rights.

For Quebec information, PaymentEvolution applies requirements that may include privacy governance, impact assessment, transparency, incident records and individual rights. Legal roles follow the facts and law, not a contract label.

10. Security and third-party risk

PaymentEvolution uses administrative, technical and physical safeguards proportionate to sensitive payroll, financial and identity information. Controls include access management, authentication, encryption in transit, monitoring, vulnerability management, secure development, backups, training, incident response and vendor oversight.

No technology can be guaranteed perfectly secure. Clients, Resellers and Partners must secure their own users, devices, credentials, integrations, Automated Agents and exported data. PaymentEvolution remains responsible for its own systems and subcontractors as stated in the agreements and Applicable Law.

11. Resellers and API partners

End Clients must accept PaymentEvolution’s applicable terms directly. A Reseller or Partner must accurately distinguish its role, may not alter required funds or regulatory disclosures, and may not prevent an End User from contacting PaymentEvolution about Client Funds, privacy, security, legal rights or complaints.

A Reseller or Partner may not receive, pool, hold, safeguard or route End Client funds through an account it controls unless a separate written arrangement identifies the payment functions, accounts, beneficial ownership, safeguarding, ledger, insolvency treatment, disclosures and legal duties. API or commercial approval by itself is not such authority.

12. Benefits, HX and third-party services

PaymentEvolution may provide technology that connects clients with a benefits broker, insurer, HR consultant, lawyer or other provider. The identified provider is responsible for its own licensed or professional service, privacy duties and terms. Software content, templates and AI output are general information and require client review. The applicable Service Schedule explains the roles.

13. Artificial intelligence and automation

PaymentEvolution may use automation and machine learning to operate, secure, support and improve Services. AI output may be incomplete or incorrect and is not professional advice. Clients must use human review and appropriate controls before material payroll, tax, benefits, employment or payment actions.

We do not use Client Data to train a general-purpose generative AI model unless the client expressly agrees in writing. Automated Agents must use supported access, scoped credentials, limits, logging and controls proportionate to risk.

14. Consumer and Quebec rights

Most PaymentEvolution client services are business services, but a feature may involve an individual user or consumer. Mandatory consumer, language, privacy and civil-law rights apply where the law says they do. No agreement excludes a right or remedy that cannot legally be waived. Quebec users should review the specific PayChequer, PAD, language and privacy disclosures that apply to them.

15. Pre-authorized debits

PADs are governed by the accepted PAD Agreement and applicable Payments Canada rules. The authorization explains the amount or calculation, frequency, notice, cancellation and recourse process. Cancellation of a PAD stops future debits after the applicable notice period; it does not erase an underlying amount owed or necessarily cancel a debit already irrevocably submitted.

16. Keeping information current

Laws, regulatory guidance, Services and PaymentEvolution’s registry information can change. We review this page and the agreement suite periodically and update material statements. Clients, Resellers and Partners must also monitor laws that apply to their own activities and seek qualified advice when needed.

17. Contact

Compliance and general inquiries
PaymentEvolution Corporation
2600 Skymark Ave, Building 1, Unit 200
Mississauga, Ontario, Canada L4W 5B2
info@paymentevolution.com
647-776-7600

Privacy inquiries: privacy@paymentevolution.com

18. Disclaimer

This page is a general, non-contractual overview. It does not expand or reduce rights under an agreement or Applicable Law, promise a particular regulatory outcome, or provide legal advice. If this page conflicts with an agreement, the agreement governs; if either conflicts with mandatory law, the law governs.