> ## Documentation Index
> Fetch the complete documentation index at: https://docs.withacclaim.com/llms.txt
> Use this file to discover all available pages before exploring further.

# CA PAD

> Collect CAD payments directly from Canadian bank accounts using Pre-Authorized Debit (PAD). Ideal for recurring and bank-based payments in Canada.

CA PAD (Pre-Authorized Debit) is a direct debit payment method that allows you to **collect CAD payments from bank accounts in Canada**.

It is commonly used for **recurring payments**, **bill payments**, and **high-value transactions** where bank-based payment is preferred over cards.

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## How CA PAD works

CA PAD follows the standard direct debit flow: **authorize**, **initiate**, and **settle**.

1. **Collect authorization**
   The payer provides consent to debit their bank account. This is typically done through a hosted or embedded flow.

2. **Initiate the debit**
   Once authorized, you initiate a payment against the payer’s bank account.

3. **Settle funds**
   Funds are transferred through the Canadian banking network over several business days.

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## Requirements

To process a CA PAD payment, you typically need:

* Bank account number
* Transit number
* Institution number
* Account holder name
* Authorization (PAD agreement) from the payer

Additional requirements may apply depending on the use case.

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## Timing and settlement

CA PAD payments are not instant and follow standard processing windows.

* Settlement typically takes **2–3 business days**
* Processing times may vary based on submission timing and bank cutoffs
* Funds are not guaranteed until settlement is complete

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## Returns and reversals

CA PAD payments can be returned after initiation.

Common return reasons include:

* Insufficient funds
* Invalid account details
* Authorization issues

Returns may occur **several days after the original payment**, depending on network rules.

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## Authorization and PAD agreements

CA PAD requires payer authorization, often referred to as a **PAD agreement**.

Authorization includes:

* Consent to debit the account
* Agreement to Canadian Payments Association (Payments Canada) rules
* Retention of authorization records for compliance

Authorization can be collected through a **setup request** or during a payment flow.

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## When to use CA PAD

CA PAD is best suited for:

* Recurring payments
* High-value transactions
* Canadian payers using bank accounts
* Reducing payment processing costs

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## Comparison to cards

| Feature        | Cards     | CA PAD                       |
| -------------- | --------- | ---------------------------- |
| Payment type   | Push      | Pull                         |
| Currency       | Global    | CAD                          |
| Authorization  | Immediate | Requires prior authorization |
| Settlement     | Fast      | 2–3 business days            |
| Failure timing | Immediate | Possible delayed return      |

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## Best practices

* Collect and store PAD agreements before initiating payments
* Validate bank details before submission
* Account for settlement delays in your workflows
* Monitor returns and handle them appropriately

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## Summary

* CA PAD allows you to collect CAD payments from Canadian bank accounts
* It requires payer authorization and operates on a pull model
* Settlement takes 2–3 business days and may include returns
* It is ideal for recurring, high-value, or cost-sensitive payments