A PAD (Pre-Authorized Debit) mandate is a Canadian bank authorization that allows a biller or service provider to withdraw funds directly from a customer’s Canadian chequing account on scheduled dates. It functions similarly to a SEPA Core Direct Debit mandate in Europe but follows Canadian banking rules and consumer protections.
With a PAD agreement, the customer gives permission for fixed or variable payments—such as recurring subscriptions, utility bills, or service fees—to be debited automatically when due.
The PAD agreement is a formal written or electronic authorization from the customer allowing debits from their bank account.
The agreement should clearly state the debit amount (fixed or variable), frequency of withdrawals, and other key terms. If the amount is variable, the customer must usually receive advance notice before withdrawal.
Customers have rights under Canadian banking rules: they can cancel a PAD agreement in writing and may request reimbursement for unauthorized or incorrect debits within specified timeframes (typically within 90 days of a debit).
To manage PAD Direct Debit mandates with Twikey, you will need:
A PAD authorization setup with your bank / payment provider
Establish a PAD originator agreement so your organization is authorized to receive recurring debits from your customers’ Canadian bank accounts through Twikey.
Twikey configuration
A PAD profile setup with specific variables is needed. Please contact our support to set this up.