Requirements of an Authorization

Our authorization forms include all the required information to collect payments from your customers’ accounts.

If you already have an existing PAD agreement with your customers, you can use this to begin collecting payments. Ensure that your agreement has the following requirements:

Canadian Requirements

  1. Date: The day of signing the agreement
  2. Type of Debit: Identify if this is a personal or business transaction
  3. Amount and Schedule: Outline whether the agreement is for variable amounts on a variable schedule or set amounts on a consistent schedule. If there is a specific event or schedule that triggers a transaction it needs to be included.
  4. Recourse/Reimbursement Statement: The payor’s rights if an unauthorizeddebit is withdrawn from their account.
  5. Cancellation Instructions: Describes how the payor can cancel their authorization.
  6. Authorization: Permission to withdraw from the payor’s account. For a paper authorization, a signature is required. For online authorizations, the payor must check the box.
  7. Account Details: Bank, transit, and account number. These can be found on a void cheque.
  8. Notification Process: Outline how payment will be communicated or include a statement that allows your payor to waive their right of pre-notification.

US Requirements:

  1. Payor's name
  2. Payor’s email address
  3. The account to be debited:
  4. Checking or Savings account
  5. Bank Name
  6. Account number
  7. Routing number
  8. Not to be exceeded amount (for recurring payments)
  9. Frequency (for recurring payments)
  10. Start date (for recurring payments)
  11. For a US authorization form, your customer will need to provide a routing number and account number only. These numbers can be found on a void check.

Notification Requirements

If an authorization is for a set amount on a consistent schedule, they must be notified 10 calendar days prior to their first withdrawal, unless they waive their right to notification.

If an authorization is set for variable amounts, they must be notified 15 calendar days prior to their first withdrawal and 10 calendar days for all future variable amount withdrawals, unless they waive their right to notification.

If the payor waives their right to pre-notification, you must wait a minimum of three days before processing the first debit.