What is a collection of invoice payments from clients using Pre-Authorized Debit (PAD)?
This lets your customers pay invoices by direct bank debit instead of a credit card or bank transfer. Once they link a bank account and authorize it, invoices can be automatically collected on the due date, no manual payment step needed.
How do my customers set it up?
They securely link their bank account (via Plaid) and sign a one-time PAD agreement. That agreement stays on file and covers future invoices until they remove the linked account.
Is there a fee?
Yes, a small processing fee applies to each PAD payment, ~1% of the invoice total, with a minimum of $0.25 and capped at $5.00. Please see your plan for further details.
What currencies and countries are supported?
Pre-Authorized Debits are currently available for Canadian domiciled bank accounts in either CAD or USD. If a customer's invoice is in an unsupported currency or outside of Canada, Pre-Authorized Debit won't appear as a payment option for that invoice.
What happens when an invoice is due?
Your customer gets a reminder email 3 days before the due date letting them know a PAD payment is coming, including the amount and which account will be charged. On the due date, the payment is automatically initiated.
What if the customer doesn't have enough funds?
If a payment is rejected for insufficient funds, we apply a standard rejection processing fee of $5.00. You have the option to retry the collection process once more or ask the customer to pay another way. If it continues to fail, the invoice reverts to unpaid and your customer is prompted to pay another way.
What if a payment fails for another reason that is not insufficient funds?
If a payment is rejected for any reason, we apply a standard rejection processing fee of $5.00. Both you and your customer are notified by email, and the customer is invited to complete payment using an alternative method.
Is there a limit on how much can be collected via PAD?
Yes, there are weekly and monthly limits on total PAD collections, as well as a per-invoice limit. If you need higher limits, you can request an increase in the app.
Can my customer remove their bank account later?
Yes. They (or you, on their behalf) can remove a linked bank account at any time, which also ends future auto-charging from that account.
Will I get confirmation when a PAD payment goes through?
Yes, both you and your customer receive an email once a PAD payment is successfully initiated, and the invoice is marked paid automatically.
When do I get the funds from a PAD payment?
Funds are held for 3-7 working days after collection before being made available in your account.