Digital Debit Agreement

In Canada, direct debit payments are often referred to as Pre-Authorized Debits (PADs). PADs are processed as EFT transactions through VoPay's EFT endpoints. In the US, direct debit payments are typically processed as ACH transactions and should be accompanied by a debit agreement, even though it isn't as formalized as it is in Canada.

Canadian PAD agreements - what is required

Before issuing any PADs to a payors account, the payee (and it’s partner processor) must obtain the account holder's authorization (the payor) by using a form and process that conforms Payor's PAD Agreement established as part of Payments Canada Rule H1.

Having an established process in place allows all the stakeholders to ensure that transactions process smoothly and disputes are minimized.

Digital Debit Agreements on VoPay

When VoPay accounts use an embedded experience like eLinx Connect, the user connecting their bank account is prompted to accept the PAD agreement.

Based on the country and payment rail involved, VoPay automatically adjusts the content of the debit agreement displayed to the end user.

Using your own PAD agreement

VoPay offers the option to replace the default PAD agreement with your own agreement. Generally, you would want to do this if you have specific payment frequencies or notification requirements that have been communicated on your PAD agreement that differ from the default agreement provided by VoPay.

A note on credit cards

Whereas we are not required to present a typical PAD agreement when charging a transaction to a credit card, we have put in place a more general set of terms that we declare to a payor when they choose to use a credit card.