By revocing a pre-authorized debit contract, your contract for goods or services with the accountant or the amount owed will not be terminated. Cancellation applies to the payment method. Revocation of a PAD contract does not cancel the goods or services contract between you and your client and does not terminate an amount owed to you. With the termination of the PAD contract, the customer only indicates that he no longer wants to pay by PAD. You must enter into other agreements with you to pay the amounts due. Here are three ways to verify your client`s identity if you accept electronic ADP agreements. There are mandatory elements that must be included in any pre-authorized penalty agreement. The procedure for cancelling a PAD should be described in your PAD agreement. If there are no specific instructions on how to terminate a PAD in the agreement, you should notify the bill eater in writing and save your letter. You can use the standard retraction form created by Payments Canada on page 32 of this document (Rule H1). If you register with an electronic agreement, you must receive written confirmation of your account at least three days before the first payment. Here at Rotessa, we have developed an online tool that really allows you to create and collect pre-authorized debit contracts.
The best part is that it is 100% free to use. The tools allow you to customize a PAD form with your logo, text and fields that you want to include. Here`s a quick look at the tool in action. This is a PAD agreement that resembles a PAD agreement, as well as the necessary elements, as described by the Canadian Payments Association: REMEMBER: The whole of a pre-authorized debit agreement is to ensure that the payer (your customer) and the beneficiary (your business) are on the same page. So if you withdraw money from your bank account, there will be no surprises. Yes, by following the cancellation process in your payer`s PAD agreement or by informing you that they no longer want to pay by PAD. We recommend that the customer do so in writing and keep a copy of the cancellation request. Yes, but you have to make that clear in the payer`s PAD agreement. The organization must also send the customer a written confirmation of the terms of the contract at least 3 days before the first payment (e-mail is acceptable). Confirmation must contain all the mandatory elements of Appendix IV of Rule H1.
Financial institutions are responsible for verifying the forms and related processes that their clients wish to use as a payment method. Your financial institution may have a model agreement that your clients need to use. Would you like to give it a try? Just create a free Rotessa account (don`t worry, your Rotessa account is 100% free) and create your own PAD agreement. The Canadian Payments Association is very specific about how long it takes to notify your customers when payments arrive (remember what I said earlier about the value of ADPs not to have surprises?). It all depends on the type of agreement you have. The other possibility is that the payer and the beneficiary agree to waive the notification period or shorten it. It is important that you have a copy of the agreement in the event of a dispute or if you wish to terminate the ADP. Keep a copy of the agreement or confirm your reference. If the existing agreements do not contain a transfer clause, the new owner must provide in writing all details of the transfer (including the name and contact information of the new owner) at least 10 days before the accounts are withdrawn.