The Bank of Canada has immediately suspended the operating licence of Xtm Payment Solutions following widespread reports of missing funds and unauthorized transactions affecting hundreds of customers across Edmonton and northern Alberta.
The federal regulator announced the emergency shutdown Friday afternoon after receiving more than 400 complaints from Alberta customers who discovered missing deposits, duplicate charges, and unexplained account debits dating back to early March.
"We have identified serious deficiencies in Xtm's internal controls and customer fund protection measures," said Bank of Canada spokesperson Jennifer Walsh in a statement. "The immediate suspension is necessary to protect consumers and maintain confidence in Canada's payment system."
Edmonton resident Sarah Chen discovered $2,300 missing from her business account on Monday when attempting to pay suppliers. "I trusted them with my company's payment processing for two years without issues," Chen said. "Now I'm scrambling to cover payroll while they investigate where my money went."
Xtm Payment Solutions, which processed credit card and electronic payments for over 3,000 small businesses across Western Canada, has not responded to requests for comment. The company's website displays a maintenance message, and customer service phone lines have been disconnected.
Alberta's Financial and Consumer Affairs Authority is working with federal regulators to investigate potential criminal activity. "We're treating this as a possible fraud case given the pattern of missing funds and the company's sudden communication blackout," said FCAA director Robert McKenzie.
The Royal Canadian Mounted Police has opened a commercial crime investigation and is coordinating with provincial authorities. Officers executed search warrants at Xtm's Calgary headquarters Thursday evening, seizing computers and financial records.
Affected customers are advised to contact their banks immediately to dispute unauthorized transactions and freeze any automatic payments processed through Xtm. The Canadian Bankers Association has established a dedicated hotline at 1-800-263-0231 for victims seeking assistance.
For Edmonton business owners needing immediate payment processing alternatives, CalgaryFinder.com maintains a directory of verified financial services providers serving Alberta communities.
The Bank of Canada estimates customer losses could exceed $5 million based on preliminary reports. A compensation framework for affected customers is expected to be announced next week pending the outcome of the ongoing investigation.
This marks the third payment processor shutdown in Canada since 2024, raising questions about oversight of financial technology companies. Parliament's finance committee has scheduled emergency hearings for next month to review regulatory gaps in the rapidly evolving fintech sector.