All Countries
Banking
Debit Authorization Agreement

Debit Authorization Agreement Template for Canada

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Debit Authorization Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Debit Authorization Agreement

"I need a Debit Authorization Agreement for my subscription-based software company in Ontario, Canada, that includes variable monthly payment amounts and allows for quarterly price adjustments with a 30-day notice period to customers."

Celebrated by
Collaborations with
Investors
Document background
The Debit Authorization Agreement is a crucial financial document used across various sectors in Canada where recurring payments are required. It establishes the legal framework for pre-authorized debits (PADs) in accordance with Payments Canada's Rule H1 and relevant federal and provincial regulations. This agreement is essential for businesses and organizations that collect regular payments from customers, such as subscription services, utilities, or loan payments. It must include specific elements required by Canadian law, including clear authorization terms, payment details, cancellation rights, and recourse procedures. The document serves both to protect the interests of payors and payees while ensuring compliance with Canadian banking regulations and privacy laws.
Suggested Sections

1. Parties: Identification of the payor (account holder) and payee (company/service provider), including full legal names and addresses

2. Background: Brief context explaining the purpose of the debit authorization and the underlying business relationship

3. Definitions: Key terms used in the agreement including 'PAD' (Pre-Authorized Debit), 'Processing Institution', 'Due Date', etc.

4. Authorization: Express authorization from the account holder permitting the payee to debit the specified account

5. Payment Details: Specification of payment amount (fixed or variable), frequency, and timing of debits

6. Account Information: Complete banking details including institution number, transit number, and account number

7. Cancellation Rights: Terms for cancellation of the agreement and required notice periods as per Rule H1

8. Recourse Rights: Statement of the payor's recourse rights and reimbursement procedures for unauthorized transactions

9. Modification: Process for making changes to the agreement or payment arrangements

10. Contact Information: Details for notifications and communications between parties

11. Governing Law: Specification that the agreement is governed by Canadian law and applicable provincial legislation

Optional Sections

1. Variable Amount Authorization: Required when debit amounts may vary; includes requirements for advance notice of amount changes

2. Electronic Communication Consent: Optional section for authorizing electronic notifications and communications

3. Business PAD Waiver: Required for business PADs where certain consumer protections are waived

4. Multiple Account Authorization: Used when authorizing debits from multiple accounts or backup accounts

5. Third Party Authorization: Required when the payor is not the account holder

6. Language Choice: Required in Quebec to acknowledge language choice for the agreement

Suggested Schedules

1. Schedule A - Payment Schedule: Detailed breakdown of payment dates, amounts, and frequencies

2. Schedule B - Void Cheque or Bank Account Details: Copy of void cheque or official bank account verification

3. Schedule C - Notification Procedures: Specific procedures for payment notifications and changes

4. Appendix 1 - Sample Cancellation Form: Standard form for agreement cancellation as required by Rule H1

5. Appendix 2 - Electronic Funds Transfer Authorization Form: Additional form required by some financial institutions for electronic transfers

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Banking & Financial Services

Insurance

Utilities

Telecommunications

Property Management

Subscription Services

Retail

Education

Healthcare

Professional Services

Charitable Organizations

Fitness & Recreation

Relevant Teams

Finance

Legal

Compliance

Operations

Customer Service

Treasury

Collections

Risk Management

Payment Operations

Account Management

Relevant Roles

Finance Manager

Accounts Receivable Manager

Legal Counsel

Compliance Officer

Banking Operations Manager

Customer Service Manager

Credit Controller

Financial Services Administrator

Treasury Manager

Payments Operations Manager

Risk Manager

Collections Manager

Industries
Canadian Payments Act: Federal legislation that establishes the framework for the national payments system and governs the operation of automated clearing and settlement systems in Canada
Rule H1 - Pre-Authorized Debits: Payments Canada rule that sets out the requirements for pre-authorized debit agreements, including mandatory elements and procedures for businesses and financial institutions
Personal Information Protection and Electronic Documents Act (PIPEDA): Federal privacy law that governs how private sector organizations collect, use, and disclose personal information in the course of commercial activities
Consumer Protection Act: Provincial legislation (varies by province) that protects consumers in financial transactions and sets requirements for consumer agreements
Proceeds of Crime (Money Laundering) and Terrorist Financing Act: Federal legislation that sets requirements for financial institutions to verify identity and monitor transactions to prevent money laundering
Bills of Exchange Act: Federal legislation that governs negotiable instruments and provides legal framework for various payment instruments
Bank Act: Primary legislation governing banks and banking transactions in Canada, including requirements for financial services agreements
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Standardized Lease

A Canadian-compliant standardized residential lease agreement establishing terms and conditions between landlords and tenants under provincial law.

find out more

Overcontract

A Canadian agreement establishing overtime work arrangements between employer and employee(s), ensuring compliance with federal and provincial employment standards.

find out more

Current Account Agreement

A Canadian-law governed agreement establishing terms and conditions for operating a current account between a financial institution and account holder.

find out more

Bookkeeping Contract

A Canadian-law governed agreement establishing terms and conditions for professional bookkeeping services between a service provider and client.

find out more

Sweep Account Agreement

A Canadian-law governed agreement establishing terms for automated transfer services between designated bank accounts, including transfer parameters and compliance requirements.

find out more

Authorization Agreement For Direct Payments

A Canadian-compliant agreement authorizing automated direct payments between bank accounts, establishing terms and conditions for recurring payment processing.

find out more

Debit Authorization Agreement

A Canadian legal agreement authorizing recurring automatic debits from a payor's bank account, compliant with Payments Canada's Rule H1 and federal regulations.

find out more

Account Purchase Agreement

A Canadian-law governed agreement for the sale and transfer of accounts receivable between a business and a financial institution, detailing purchase terms and operational requirements.

find out more

Bank Account Contract

A Canadian-law governed agreement establishing the terms and conditions between a financial institution and account holder for operating a bank account, complying with federal and provincial banking regulations.

find out more

Pre Authorized Payment Agreement

A Canadian-compliant agreement authorizing recurring automated payments from a specified bank account, subject to Payments Canada rules and federal regulations.

find out more

Operating Agreement For Bank Account

A Canadian-law governed agreement establishing terms and conditions for operating a bank account, defining rights and obligations of both the financial institution and account holders.

find out more

Rental Agreement For Bank Account Opening

A Canadian legal agreement combining residential tenancy terms with mandatory bank account opening requirements, governed by federal and provincial laws.

find out more

Master Account Agreement

A Canadian-law governed agreement establishing the fundamental relationship between a financial institution and its account holders for all banking services and accounts.

find out more

Account Control Agreement Collateral

A Canadian tripartite agreement establishing control over deposit accounts as collateral, governed by federal banking laws and provincial security legislation.

find out more

Client Account Agreement

A Canadian-law governed agreement establishing the relationship between financial institutions and their clients for account services and operations.

find out more

Business Account Agreement

A Canadian-law governed agreement establishing the terms and conditions for business banking services between a financial institution and a business entity.

find out more

Time Deposit Agreement

A Canadian-law governed agreement establishing terms and conditions for a time deposit between a financial institution and depositor, including deposit terms, interest rates, and regulatory compliance requirements.

find out more

Notice Of Assignment Of Accounts Receivable

A Canadian legal document notifying debtors that specific accounts receivable have been transferred from one creditor to another, requiring future payments to be made to the new creditor.

find out more

Blocked Account Control Agreement

A Canadian law-governed agreement establishing control over deposit accounts between a bank, account holder, and secured party in secured lending arrangements.

find out more

Authorization Agreement For Direct Deposits

A Canadian-compliant legal agreement authorizing automatic electronic fund transfers between parties, meeting federal and provincial banking and privacy requirements.

find out more

Deposit Account Agreement

A Canadian-law governed agreement establishing the terms and conditions between a financial institution and account holder for deposit account services.

find out more

Margin Agreement

A Canadian law-governed agreement establishing terms for margin lending and securities trading between a financial institution and its client, incorporating Canadian regulatory requirements.

find out more

Blocked Account Agreement

Canadian law-governed agreement establishing terms for a blocked account arrangement between a bank, account holder, and beneficiary, incorporating federal and provincial regulations.

find out more

Bank Account Agreement

Canadian-law governed agreement establishing terms and conditions between a financial institution and account holders for banking services.

find out more

Joint Account Agreement

A Canadian banking agreement establishing terms and conditions for an account shared between multiple parties, governed by federal and provincial regulations.

find out more

Account Opening Agreement

A Canadian-law governed agreement establishing the terms and conditions between a financial institution and an account holder for opening and maintaining a bank account.

find out more

Certificate Of Deposit Agreement

A Canadian-law governed agreement between a financial institution and depositor establishing terms for a certificate of deposit, including principal, interest, and maturity conditions.

find out more

Account Receivable Purchase Agreement

A Canadian law-governed agreement for the sale and transfer of accounts receivable, establishing terms of purchase, rights, and obligations between seller and purchaser.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.

Read our Privacy Policy.