Payor's PAD Agreement details


Rule H1 sets forth 7 mandatory provisions that must be included in any Payor's PAD Agreement justifying a pre-authorized debit (PAD). Your caisse or the AccèsD Affaires Services have a responsibility to validate the compliance of these elements in your Payor's PAD Agreement:

  • Date and signature of the Agreement.
  • Authorization to debit specific amount.
  • PAD type (Personal or Business).
  • Amount and timing of the PAD, or the specifics of the timing of the PAD (see Sections 14, 15 and 16 of Rule H1 for details).
  • Method and lead time (maximum 30 days) to cancel the Agreement, including the manner in which to obtain a sample cancellation form.
  • Contact information of the PAD issuing company so that a payor may contact the payee to make inquiries, obtain information or seek recourse.
  • Statement on recourse and reimbursement rights.

Additional requirements apply for variable PADs, sporadic PADs and in cases where the company seeks the payor's agreement to reduce or waive the standard notification period applicable under certain circumstances.

Find out more
See Payor's PAD Agreement - Mandatory and Supplementary Elements (PDF, 447 KB) on the Payments Canada website.

Approval of paper Payor's PAD Agreement

  • Forward your model Payor's PAD Agreement to an AccèsD Affaires Services advisor.
  • The advisor will send you the Direct Withdrawal Service Agreement (Pre-Authorized Debit) that you must sign with your caisse.
  • Use the approved Payor's PAD Agreement for any pre-authorized debit authorized by a customer (once the Agreement signed).

Find out more
See Checklist and model Payor's PAD Agreements.

Approval of electronic Payor's PAD Agreement

  • Submit the electronic form or calling script that will serve as your Payor's PAD Agreement to an AccèsD Affaires advisor.
  • Submit for approval your payor's identity and authorization proofing procedure. The AccèsD Affaires advisor can help you with this process.

Existing Payor's PAD Agreement

A Payor's PAD Agreement (or direct withdrawal authorization) currently in effect is grandfathered and does not have to be replaced. However, the new payor's right to recourse may apply.