Checklist and model Payor's PAD Agreements

To determine which PAD Agreement template to use, see the decision support table that is based on the documents provided by Payments Canada:

Checklist and model Payor's PAD Agreements
  Set interval PADs Sporadic PADs One-time PADs
Agreement format Hard copy, electronic or voice recording
Amount Fixed or variable Fixed or variable One-time
Payor's PAD Agreement The consent or agreement of a payor whose identity has been verified by commercially reasonable methods is always mandatory.
Written confirmation At least 10 calendar days before the due date of the first PAD, the beneficiary must provide or make available to the payor a confirmation, which may be in the form of a written copy of the Payor's PAD Agreement or a summary of the key terms of the agreement, containing the mandatory provisions set out in Appendix IV of Payments Canada's Rule H1 – Pre-Authorized Debits (PADs) (PDF, 447 KB) - External link..
  • The payor can waive the confirmation or shorten the confirmation period.
  • The beneficiary must provide or make available a confirmation within 5 calendar days after the date of the first PAD.
 The payor cannot waive it.
  • The payor can waive the confirmation or shorten the confirmation period.
  • The beneficiary must provide or make available a confirmation within 5 calendar days after the date of the first PAD.
Pre-notification before the first PAD
  • At least 10 calendar days before the first PAD.
  • The payor can waive it before the due date of the first PAD.
The beneficiary must obtain the payor's authorization for each PAD prior to each PAD being exchanged and cleared. The beneficiary must obtain a new Payor's PAD Agreement for any subsequent PAD.
Pre-notification before the next PAD if there is an amount or date change
  • At least 10 calendar days before the next PAD.
  • The payor can waive it before the due date of the first PAD.
  • Exception: The pre-notification is not required if the amount is decreased due to a reduction in a municipal, provincial or federal tax
The beneficiary must obtain the payor's authorization for each PAD prior to each PAD being exchanged and cleared. The beneficiary must obtain a new Payor's PAD Agreement for any subsequent PAD.
Waiver Waiver provisions may be included in a separate document or in the Payor's PAD Agreement. If they are included in the Payor's PAD Agreement, they must be prominent (underlined, highlighted or in bold). The payor cannot waive the beneficiary's obligation to request authorization.
Record keeping The beneficiary must retain an audit trail that includes the PAD Agreement and proof of authorization for at least 12 months after the last PAD processed under the Agreement.
Cancellation of an Agreement by the beneficiary
Model documents Set interval PAD model: Sporadic PAD model: One-time PAD model:

Model Payor's PAD Agreement

The models available below meet the new Rule H1 requirements. They can be personalized in Word, but the mandatory provisions must be maintained. The AccèsD Affaires approval process will be faster if you use the models without making any changes.

The PDF models allow you to include your company logo and can be filled out as an electronic version.

The model below is a non-modifiable PDF. It contains various options for pre-authorized debits (PADs) and includes a legend listing the 7 mandatory elements set out in Rule H1.

PAD model with legend: