Checklist and model Payor’s PAD Agreements

The following table is based on the documents provided by the Payments Canada.

  Fixed interval PADs Sporadic PADs
  Fixed amount Variable amount Fixed or variable amount
Payor’s PAD Agreement Always mandatory
Written confirmation of an electronic Payor’s PAD Agreement

Mandatory

  • Includes, at least, all the mandatory elements of the Payor’s PAD Agreement and waiver clauses, if applicable
  • 15 days before the 1st PAD
  • Lead time may be reduced to 3 days with the payor’s consent
  • The payor cannot completely waive it
  • May be deemed a pre-notification before the 1st PAD
Pre-notification before 1st PAD
  • 10 days before the 1st PAD
  • The payor can waive it
  • 10 days before the 1st PAD
  • The payor can waive it
Must obtain authorization before each PAD
Autorisation avant chaque DPA Not necessary Not necessary
  • Mandatory
  • The payor cannot waive it
Pre-notification before each PAD Not necessary

Not necessary

  • 10 days before each PAD
  • The payor can waive it
Must obtain authorization before each PAD
Pre-notification before next PAD
If amount or date change
  • 10 days before next PAD
  • The payor can waive it
  • Not necessary if the change is due to reduction in a tax

Not necessary

  • 10 days before each PAD
  • The payor can waive it
Must obtain authorization before each PAD
Advance notice before next PAD
If name of business changes or termination of Payor’s PAD Agreement (including a collection agency)
  • Written notice 10 days before next PAD
  • The payor cannot waive it
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 (e.g., highlighted, underlines or in bold) to ensure that the payor is aware of it.
Standard model Payor’s PAD Agreement

Model fixed interval PADs (most common):

Model sporadic PADs:

Model Payor's PAD Agreements

The models below meet Rule H1 requirements. They can be personalized, in Word, but mandatory provisions must be maintained. However, the approval process with AccèsD Affaires will be faster if you use the model as is.

PDF models let you include your company logo and can be filled out in electronic version.

The last model in non-modifiable PDF is modeled on the model for fixed interval PADs, but it also includes a legend illustrating the 7 mandatory elements described in Rule H1.

Model fixed interval PADs with legend: