You must immediately notify your invoice issuer(s) of any changes to your account information. Otherwise, the invoice issuer will continue to accept payments from the account they have registered. For detailed information, see Annex II to Regulation H1. If additional charges apply to your account due to unauthorized charges, ask your financial institution to waive those fees. For example, an unauthorized pre-authorized debit may result in the inability to make another payment due to insufficient funds. Termination of your pre-authorized direct debit contract does not terminate your contract for goods or services with the invoice issuer or any amount due. Cancellation applies to the payment method. You must make arrangements with the invoice issuer to pay all amounts due. If you need detailed information, you can find the H1 rule (which applies to developing countries) in the “Rules and Standards” section. Recurring charges on your credit card are not considered DAPs and are not regulated by Payments Canada.
If you have any questions about credit card fees, contact the credit card company. You must provide your bank details as part of the pre-authorized collection agreement. Your financial institution may ask you to issue a blank cheque. This is to confirm your account details. You configure pre-authorized payment regardless of the issuer of the invoice. You can change or cancel it yourself at any time. You can usually do this electronically through online banking. Once registered, follow the instructions to set up a one-time payment or a series of recurring payments. There are mandatory elements that must be included in any pre-authorized debit agreement.
A pre-authorized fee allows the invoice issuer to withdraw money from your bank account when a payment is due. A pre-authorized fee may be useful if you want to make regular payments from your account. For example, you can use pre-authorized fees to: Pre-authorized debits (DECs) are a convenient way to pay bills and make other payments automatically. Instead of sending a payment, a company withdraws money from your bank account. It`s a great way to pay bills like your mortgage, utilities, donations, and insurance premiums. PADs are also used, for example, to transfer funds from a bank account to a Registered Retirement Savings Plan (RRSP). But giving someone permission to withdraw money from your bank account is a serious matter, and you need to understand your rights and obligations. Payments Canada and its participating financial institutions have established conditions to ensure that PADs are properly authorized and to protect against abusive withdrawals. If you find a pre-authorized fee that you did not approve in your account, contact the invoice issuer directly and claim your refund.
You can file a complaint with your bank about an unauthorized charge to your account. All government-regulated financial institutions must have a complaint process in place to resolve consumer complaints. If you don`t have enough money in your account to cover a withdrawal, the biller can try the same fee again. The issuer of the invoice must do so within 30 days of the withdrawal date and it must be for exactly the same amount. You may need to give the invoice issuer a password or passcode to approve the pre-authorized fee. You must complete a pre-authorized debit agreement in which you authorize withdrawals. Depending on the financial institution, you may be able to do this in writing, electronically or by telephone. If you conclude your contract electronically or by telephone, the bank must send you a written confirmation. It must be sent from your account at least 3 days before the first withdrawal and must include the details of the agreement. Your pre-authorized debit agreement must include the frequency of the pre-authorized debit.
Frequency indicates how often the biller withdraws money from your account. As part of the contract, you provide your bank details. The invoice issuer may request a blank check to confirm your account information. Be sure to write “VOID” in ink on the front of the cheque and do not sign it. The agreement must include cancellation instructions. If not, notify the issuer of the invoice in writing and keep a copy for your records. You can use the model withdrawal form in rule H1, but you are not obliged to do so. The invoice issuer must obtain your consent for each pre-authorized fee if any of the following conditions occur: An automatic payment or pre-authorized payment does not give the invoice issuer permission to withdraw money from your account. Instead, you arrange an automatic payment or a series of recurring payments from your account to the invoice issuer. You have 90 days from the withdrawal date to report an incorrect or unauthorized pre-authorized debit to your financial institution. To cancel a pre-authorized direct debit agreement, you must notify the issuer of the invoice in writing.
Be sure to keep a copy of this notice. .
