How Payments Work with Remote Payment Services (Canada)

This article explains how to fund payroll and pay contractor invoices using Remote Payment Services (RPS) in Canada. It provides an overview of payment methods, timelines, and fees for employers.

Overview

Remote Payment Services operates as a FINTRAC and Bank of Canada regulated Money Services Business. This means your funds are held securely in safeguarded accounts, and payments are processed through regulated banking infrastructure. You can fund your payroll in CAD only, and contractor invoices in either CAD or USD.

Paying employees (Payroll Prodyct)

To pay your employees through Remote Payment Services (RPS), Remote needs to receive your payment at least one business day before the payout date.

Payment methods available

• Bank transfer

• PAD Direct Debit

Payment timeline

Bank transfer timeline:

• Send your payment: Transfer funds from your bank account at least two business days before the payout date. If you remit using wire transfer, make sure to indicate CHG:OUR so Remote will receive the full amount. Short payments are not allowed.

• Settlement time: Funds typically settle into Remote's safeguarded account within one to two business days.

• Funds allocation: Once settled, funds are allocated to your payroll.

• Employee payment: Payroll is processed, and employees receive their payments on the payout date.

Direct Debit timeline:

• Automatic collection: PAD Direct Debit is triggered automatically once the payroll run is approved.

• Settlement time: Remote receives funds in 3-4 business days.

• Funds allocation: Once settled, funds are allocated to your payroll.

• Employee payment: Payroll is processed, and employees receive their payments on the payout date.

How employees receive payment

When paying employees in Canada:

• Payments are processed as domestic transfers to the employee's local bank account.

• Funds are sent via Electronic Funds Transfer (EFT).

• Remote absorbs the transaction processing fees for domestic payments.

• Employees receive funds in their bank accounts based on standard banking settlement times.

Paying contractors (Contractor Management)

When a contractor submits an invoice, you will need to fund that payment through Remote Payment Services.

Payment methods available

• Bank transfer

• PAD Direct Debit

Payment timeline

• Invoice approval: You approve the contractor's invoice on the Remote platform.

• Select payment method: When ready to pay, select Direct Debit or Bank Transfer.

  • Bank transfer: Funds typically settle into Remote's Safeguarding account within one to two business days.

  • Direct Debit: Funds settle in two business days.

• Funds allocation: Once settled, funds are allocated to the contractor invoice.

• Contractor payment: The payment is processed, and the contractor receives their funds.

How contractors receive payment

Domestic payments (same currency):

When paying contractors in Canada with CAD or USD:

• Payments are processed as domestic transfers to the contractor's bank account.

• Funds are sent via EFT for CAD or Wire Transfer for USD.

• Remote absorbs the transaction processing fees for domestic payments.

• Contractors receive funds in their bank accounts based on standard banking settlement times.

Cross-border payments:

When paying contractors in different currencies or countries:

• Payments are processed through our partner payment providers.

• Foreign exchange conversion is handled as part of the payment process.

• Contractors receive funds in their chosen currency and bank account.

• Fees for cross-border payments (such as SWIFT fees) may apply.

Understanding fees

Domestic payments

For payments within Canada (CAD or USD to Canadian bank accounts), Remote absorbs the transaction processing fees. You will see transparent pricing for the Remote platform service fees.

Cross-border payments

For payments that involve currency conversion or SWIFT transfers:

• You will see any applicable fees upfront before confirming the payment.

• Fees may include SWIFT transfer fees and foreign exchange conversion.

Refunds and payment issues

Overpayments

If you accidentally send more funds than needed, the excess amount will be refunded to your originating bank account within business days after the payment is processed.

Underpayments (short payments)

If you send less than the full amount required:

• Your funds will be held for up to seven business days to allow you to send the remaining balance.

• Payments to employees or contractors will not be processed until the full amount is received.

• If the shortfall is not resolved within seven business days, the funds will be refunded to your account.

Payment failures

If a payment to an employee or contractor fails (for example, due to incorrect bank details):

• The employee or contractor will receive a notification.

• The funds will be held securely.

• Once the employee or contractor updates their account details, they can self-serve and re-trigger the payout from their dashboard.

• If the payment cannot be re-processed after one month, the funds will be refunded to your account.

Getting started

To begin using Remote Payment Services:

1. Complete Business Verification: Ensure your Business Verification/KYB is submitted and approved.

2. Add your bank account: Provide your business bank account details in your Remote account.

3. Fund your first payment: Transfer funds for your upcoming payroll or contractor invoice.

4. Track your payments: Monitor payment status through your Remote dashboard.

If you have questions about getting started, please contact our support team.