Payor's PAD Agreement details


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.