A PAD that is not preauthorized is an Unauthorised Debit. The police authorities have been notified. The preauthorized debit or.... The “Payor’s PAD Agreement” means a continuing but revocable Written or otherwise Recorded authority that has been signed or otherwise Authorized containing the mandatory provisions set out in Appendix II, given by a Payor to a Payee that provides an Authorization for the Payee to issue PADs against the Payor’s account at its Processing Member; The preauthorized debit plan is not to be confused. It is the customer of the bank that has to preauthorize any payment to the customer's cable company or security company. Let not be confused about the word authority or Pre Authorised. It for the customer of the cable company or phone company that when making bill payments, they can preauthorize their payment to be taken from one of their particular accounts with a form that the customer must fill out and sign. Without that form, it is a criminal offence to access any account without the customer's signed written authority. They are going to jail since the evidence is clear and clinical. The Attorney general is fired for not understanding this issue.

The police authorities have been notified. 

The preauthorized debit or....

 The “Payor’s PAD Agreement” means a continuing but revocable Written or 

otherwise Recorded authority that has been signed or otherwise Authorized 

containing the mandatory provisions set out in Appendix II, given by a Payor to 

a Payee that provides an Authorization for the Payee to issue PADs against the 

Payor’s account at its Processing Member;

The preauthorized debit plan is not to be confused. It is the customer of the bank that has to preauthorize any payment to the customer's cable company or security company. Let not be confused about the word authority or Pre Authorised.  It for the customer of the cable company or phone company that when making bill payments, they can preauthorize their payment to be taken from one of their particular accounts with a form that the customer must fill out and sign. Without that form, it is a criminal offence to access any  account without the customer's signed written authority.   They are going to jail since the evidence is clear and clinical. The Attorney general is fired for not understanding this issue. 

APPENDIX II - PAYOR’S PAD AGREEMENT – MANDATORY AND

OPTIONAL ELEMENTS

Introduction

This Appendix II sets out the mandatory elements which must be included in every Payor’s PAD 

Agreement for the purposes of Rule H1 and certain optional elements which may be included 

in a Payor’s PAD Agreement for the purposes of Rule H1:

Mandatory Elements: 

• Mandatory for all: elements that must be included in every Payor’s PAD Agreement.

• Mandatory by circumstance: these elements that must be included if the specified 

circumstances apply (e.g. Sporadic PADs).

Optional Elements: 

• Optional elements that may be included in a Payor’s PAD Agreement at the discretion 

of the Payor and Payee. 

• For clarity, this list of elements is not exhaustive; the Payor’s PAD Agreement may 

include other provisions not included in this list, provided such provisions do not conflict 

with the requirements in Rule H1.

The Payee is not precluded from including other provisions, using a different format or 

incorporating the provisions within a contract for goods or services provided or another 

document provided that the mandatory elements are also included. For clarity, the mandatory 

elements set out in this Appendix II are in addition to and do not replace any provisions of any 

other agreement between a Payor and a Payee and do not limit a Payee’s obligations under 

Rule H1. Capitalized terms used in this Appendix II have the meanings ascribed to those terms 

in Rule H1.

Each and every Payor’s PAD Agreement is subject to any and all applicable laws including, 

without limitation, any and all applicable laws relating to consumer protection.

Mandatory for all Elements:

Mandatory Element Description of Mandatory Element 

Date and Signature A date field in which the execution date of the Payor’s PAD Agreement 

can be recorded. For Written Payor’s PAD Agreements, a signature field 

where the Payor can sign the agreement.

Authority to Debit 

Account

A statement by the Payor that must be duly Authorized in accordance with 

its account agreement with its Processing Member, clearly and 

unambiguously authorizing the Payee to debit an account specified by the RULE H1 - PRE-AUTHORIZED DEBITS (PADS) 

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Mandatory Element Description of Mandatory Element 

PAD Category A statement that is either pre-printed on the Payor’s PAD Agreement or 

clearly indicated by the Payor as to whether the PADs are Personal PADs 

(e.g. for mortgage payments, utility payments, charity donations, etc.), 

Business PADs (e.g. for supplies, lease payments, etc.) or Funds Transfer 

PADs (e.g. for registered retirement savings plan payments, mutual funds 

payments, etc.).

Amount, Timing or 

Specified 

Event/Action

A statement that is either pre-printed on the Payor’s PAD Agreement or 

clearly indicated by the Payor as to the amount (i.e. whether fixed or 

variable) and timing (i.e. weekly, bi-weekly, semi-monthly, monthly, bi-

monthly, annual, on set dates or otherwise) of the PAD or whether each 

PAD is to be triggered by a specified act, event or other criteria or whether 

each PAD is to be Sporadic and, if each PAD is to be triggered by a 

specified act, event or other criteria, then an unambiguous description of 

that act, event or other criteria.

Cancellation of 

Agreement

A Payor’s PAD Agreement must include cancellation information to the 

effect that (a) the Payor may revoke their Authorization at any time, 

subject to providing notice (Payee must set out the notice period which 

must not exceed 30 calendar days), and (b) the Payee may cease issuing 

PADs either in accordance with the terms of the Payor’s PAD Agreement 

or, where cancellation is not addressed, in accordance with Rule H1. A 

Payor’s PAD Agreement must also advise that the Payor may obtain a 

sample cancellation form, or further information on their right to cancel a 

PAD Agreement, at their financial institution or by visiting 

www.payments.ca. Note: One-Time Payor’s PADs Agreements only 

permit a single PAD.

Contact Information A Payor’s PAD Agreement must include reasonable and accurate contact 

information of the Payee so that a Payor may contact the Payee by any 

method of communication used by the Payee (e.g. postal address, fax 

number, telephone number, email address) to make inquiries (e.g. 

regarding the Payee’s practices related to personal information, privacy, 

and information security), obtain information or seek recourse with 

respect to any PAD issued by the Payee.

Recourse/ 

Reimbursement 

Statement 

Except for Fund Transfer PADs coded “650” or “83”, each Payor’s PAD 

Agreement must contain the following statement in its entirety:

“You [or I/We, depending on the context] have certain recourse rights if any 

debit does not comply with this agreement. For example, you [I/we] have 

the right to receive reimbursement for any debit that is not authorized or 

is not consistent with this PAD Agreement. To obtain more information 

on your [my/our] recourse rights, [I/we may] contact your [my/our]

financial institution or visit www.payments.ca.” RULE H1 - PRE-AUTHORIZED DEBITS (PADS) 

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Mandatory by Circumstance Elements:

Mandatory by 

Circumstance 

Element 

Description of Mandatory Element 

Funds Transfer 

PADs Coded “650” 

or “83”

Where a Funds Transfer PAD is coded “650” or “83”, the Member 

initiating the Funds Transfer must advise that the Payor will not have 

recourse within the Association rules, unless the PAD is dishonoured for 

any reason within the next Business Day timeframe following Exchange 

of the Funds Transfer PAD.

One-Time PADs A Payor’s PAD Agreement that authorizes One-time PADs must specify 

that the agreement supports a One-Time PAD, and that the Payor’s PAD 

Agreement will no longer be valid once the payment has been

fulfilled. Any subsequent PAD(s) require a newly Authorized Payor’s 

PAD Agreement.

Payment Service 

Provider as a Payee

Where a Payee is collecting payments on behalf of an entity that is 

providing a Payor with goods and services, the Payor’s PAD Agreement 

must include a statement that describes the arrangement between the 

Payee and the entity providing the Payor with goods and services.

Pre-notification A Payor’s PAD Agreement that provides for Personal PADs or Business 

PADs to be issued at Set Intervals may state that the Payor is entitled to 

receive Pre-notification in the manner and at the time(s) set out in Rule 

H1.

Sporadic PADs A Payor’s PAD Agreement that authorizes Sporadic PADs must specify 

that the Payee is required to obtain due Authorization from the Payor in 

accordance with Rule H1 for each Sporadic PAD that the Payee issues 

against the Payor.

Waiver/Modification 

of Pre-notification/ 

Confirmation 

requirements 

A Payor’s PAD Agreement that provides for Personal PADs or Business 

PADs to be issued at Set Intervals or One-Time may permit the Payor 

and Payee to mutually waive Pre-notification / Confirmation or modify 

the Pre-notification / Confirmation requirements of Rule H1 provided the 

Payor specifically indicates its acceptance of the waiver or modification 

in the Payor’s PAD Agreement or otherwise by way of a separate 

Authorization. Any such clause to reduce or waive the standard Pre-

notification / Confirmation requirements must be prominently displayed 

(e.g. bold, highlighted or underlined). RULE H1 - PRE-AUTHORIZED DEBITS (PADS) 

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Optional Elements (Note that the Payor and Payee may include additional provisions not listed 

here at their discretion):

Optional Element Description of Optional Element 

Change of Account 

Information

A Payor’s PAD Agreement may require that the Payor must give Written 

notice to the Payee of any change with respect to the account against 

which it has designated PADs to be drawn.

Impact of 

Termination of 

Contract for Goods 

and Services on 

Payor’s PAD 

Agreement

A Payor’s PAD Agreement may outline the impact of the termination of 

the underlying contract for goods and services on the Payor’s PAD 

Agreement, if any (e.g., triggering termination of the Payor’s PAD 

Agreement, provided this is in accordance with Rule H1).

Impact of 

Termination of 

Payor’s PAD 

Agreement on

Contract for Goods 

and Services

A Payor’s PAD Agreement may state that it only applies to the method 

of payment between the Payor and the Payee and that the agreement 

and any termination of the agreement does not have any effect 

whatsoever with respect to any contract for goods or services between 

the Payor and Payee.

Jurisdiction of 

Payor’s PAD 

Agreement

A Payor’s PAD Agreement may include Governing Law and Choice of 

Forum Clause.

Payor’s Rights of 

Dispute: Personal 

PADs, Business 

PADs and Funds 

Transfer PADs

A Payor’s PAD Agreement that provides for Personal PADs, Business 

PADs or Funds Transfer PADs for which Rule H1 provides the Payor with 

the right to make a claim for reimbursement under one of the declared 

conditions set out in subsection 24(b) of Rule H1 subject to completing 

a Reimbursement Claim, may include language relating to how a claim 

for reimbursement may be made.

Validation by 

Processing 

Member

A Payor’s PAD Agreement may state that the Processing Member is not 

responsible for validating the terms of the Payor’s PAD Agreement in 

respect of a PAD issued under that agreement RULE H1 - PRE-AUTHORIZED DEBITS (PADS) 

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APPENDIX II (CONT’D)

SAMPLE A – Pre-Authorized Debit (PAD) Agreement RULE H1 - PRE-AUTHORIZED DEBITS (PADS) 

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APPENDIX II (CONT’D)

SAMPLE B – Pre-Authorized Debit (PAD) Agreement RULE H1 - PRE-AUTHORIZED DEBITS (PADS) 

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APPENDIX II (CONT’D)

SAMPLE C – Sample Payor’s Pre-Authorized Debit (PAD) Agreement for O