{"title":"Pre-Authorized Debit Canada","category":"payment_method","creationDate":1776961628,"content":"
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Read more<\/strong><\/p>

Learn about payments in Canada on the Payments Canada<\/a> website.<\/p><\/div><\/div>\n\n

Pre-Authorized Debit (PAD) is a popular payment method used in Canada as an alternative to credit and debit cards. A PAD involves a shopper giving a business permission to withdraw funds from their bank account. PADs are often used for recurring payments, such as monthly subscriptions, utility bills, or membership fees. One-off payments are supported too, but due to the risk of chargebacks, we do not recommend using PADs for one-off payments.<\/p>\n

The payments are processed through the Automated Clearing Settlement System (ACSS), which is an electronic network provided by Payments Canada<\/a> for processing financial transactions.<\/p>\n

To accept PADs, you must have a registered business entity in Canada.<\/p>\n\n \n \n \n \n
\n Payment type\n <\/th>\n \n Payment flow\n <\/th>\n \n Countries\n <\/th>\n \n Currencies\n <\/th>\n \n Recurring<\/a>\n <\/th>\n \n Refunds<\/a>\n <\/th>\n \n Partial refunds<\/a>\n <\/th>\n \n Multiple partial refunds<\/a>\n <\/th>\n \n Separate captures<\/a>\n <\/th>\n \n Partial captures<\/a>\n <\/th>\n \n Multiple partial captures<\/a>\n <\/th>\n \n Chargebacks<\/a>\n <\/th>\n <\/tr>\n <\/thead>\n
\n Direct Debit\n <\/td>\n \n Direct\n <\/td>\n \n CA\n <\/td>\n \n CAD\n <\/td>\n \n \"checkmark\"<\/br>\n <\/td>\n \n \"checkmark\"<\/br>\n <\/td>\n \n \"checkmark\"<\/br>\n <\/td>\n \n \"checkmark\"<\/br>\n <\/td>\n \n \"x\"<\/br>\n <\/td>\n \n \"x\"<\/br>\n <\/td>\n \n \"x\"<\/br>\n <\/td>\n \n \"checkmark\"<\/br>\n <\/td>\n <\/tr>\n <\/tbody>\n<\/table>\n\n

Getting a mandate from the shopper<\/h2>\n

Before you can initiate a PAD, regardless of whether it is a one-off payment or a recurring payment, you must get a mandate (consent) from the shopper and save it in your system. This mandate is called a PAD agreement. It is your responsibility to obtain the PAD agreement.<\/p>\n

At a minimum, the PAD agreement must include:<\/p>\n