Payor's PAD Agreement details
Requirements
Rule H1 lists 7 mandatory provisions that must be included in any Payor's pre-authorized debit (PAD) agreement. Your caisse or AccèsD Affaires is responsible for confirming that your Payor's PAD.
Agreement contains these 7 provisions:
- Date and signature of the Agreement
- Authorization to debit specificed account
- PAD type (Personal or Business)
- Amount and timing of the PAD, or the specifics of the timing of the PAD (see part IV of Rule H1 for details)
- Cancellation method and time frame (maximum 30 days) for the Agreement, including information on how to obtain a sample cancellation form
- Contact information for the PAD issuing company that a payor can use to make inquiries, obtain information or seek recourse
- Statement on recourse rights and reimbursement procedure
Additional requirements apply for variable, sporadic and one-time PADs, and in cases where the company asks the payor to enter into a PAD to reduce or waive the standard notice period applicable under certain circumstances.
Learn more
See Appendix II of Rule H1 – Pre-Authorized Debits (PADs) (PDF, 447 KB) - External link. on the Payments Canada website.
Validating a Payor's PAD Agreement
- Send your Payor's PAD Agreement template (in hard copy, electronic format or call script) to an AccèsD Affaires advisor.
- The advisor will guide you through the AccèsD Affaires registration process if you haven't already registered, adding the direct withdrawal service.
- Use the approved Payor's PAD Agreement form for any pre-authorized debit authorized by a customer (once the Agreement has been signed).
- Submit your procedures for verifying a payor's identity and authorization for approval. The AccèsD Affaires advisor can help you with this process.
Learn more
See the Checklist and model Payor's PAD Agreements page.
Existing Payor's PAD Agreement
A Payor's PAD Agreement (or direct withdrawal authorization) that is currently in effect does not need to be replaced. However, payors may have new recourse rights.