Setting up and processing your first Pre-Authorized Debits (PAD) file

Setting Up Pre-Authorized Debits (PAD) in the Telpay for Business Software:

Step 1: Start offering your customers the option to pay by pre-authorized debit

Before issuing any PADs to a customer's account, your business (the Payee) is required to provide your client (the Payor) with a pre-authorized debit agreement outlining the account the money will be taken from and the amount and frequency of the withdrawals.  This must be done using a form that must be approved by Telpay Incorporated.  This authorization as outlined by Payments Canada is referred to in Rule H1 as a Payor's PAD Agreement.  

1. Create a Payor's PAD Agreement that is specific to your business. This Agreement must include mandatory information as set out by Payments Canada's Rule H1.   Click here to see a Payor’s PAD Agreement sample from Payments Canada - Rule H1 Appendix II.

2. Provide the Payor (your customer) with your PAD Agreement.

3. The Payor must complete and return their signed PAD Agreement to you.

Step 2: Create and process pre-authorized debits within Telpay for Business

If you have already registered your Telpay for Business software, you will need to send a transmission to Telpay in order for your software to be updated with the PAD feature. 

1. Use our instructions for setting up your Telpay for Business software to process PAD's

2. Once the debits occur Telpay holds the funds until it is cleared through the banking system.  The funds are then deposited into your company account.

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