Lynx is Canada's high-value payment system, operated by Payments Canada on the real-time gross settlement model: each payment settles individually, in real time, across participants' settlement accounts at the Bank of Canada, so funds are final and irrevocable the moment they settle. It replaced the LVTS in September 2021, uses ISO 20022 messaging with SWIFT as its message service provider, and is designated by the Bank of Canada as a systemically important payment system under the Payment Clearing and Settlement Act. Lynx is also a key mechanism the Bank of Canada uses to implement monetary policy, and it is the settlement backbone the other Canadian rails lean on: ACSS net positions settle across the same Bank of Canada accounts, and the coming RTR's settlement balances are funded and defunded through Lynx.
In a flow
Lynx is the bottom money leg of a Canadian wire: the sending bank's settlement account at the Bank of Canada is debited and the receiving bank's is credited, one payment at a time, with finality. The customer's instruction and the ISO 20022 messages ride above that settlement core.
Common misconceptions
Myth: Lynx is where Interac e-Transfers settle.
Reality: Not individually. An e-Transfer clears over Interac's platform, and what later settles between the banks is their netted obligation, separate from the transfer you sent. Lynx itself settles individual high-value payments gross; your $50 e-Transfer never appears inside it as a Lynx payment.
Myth: A wire can be recalled if you sent it to the wrong place.
Reality: Lynx settlement is final and irrevocable the moment it happens. Getting money back means asking the receiving bank and its customer to send a new payment the other way, a request, not a right.
Related terms
See it in a guide
Sources
- Lynx high-value payment system ↗ · Payments Canada (operator). RTGS model, real-time settlement finality, ISO 20022, and SWIFT as the message service provider.
- Lynx (Bank of Canada) ↗ · Bank of Canada. Replaced the LVTS in September 2021; designated systemically important; role in monetary policy.
Educational, plain-English explainers. Not legal, compliance, tax, or financial advice. These cover fundamentals, not current fees, limits, or rates (which change). Rails and parties vary by program and country, so verify specifics against primary sources. Last reviewed June 2026.