We understand that collecting your customer’s payment authorization via an online form isn’t always possible, or doesn’t match how you would normally interact with your customers.
To help with this, we offer a paper authorization collection option in Canada (PAD). Before using this option, it’s important to be aware that there are compliance requirements that govern setting up authorizations in this way. So, please carefully follow the relevant process and guidance below.
PAD authorization use cases / schedules
Before getting started with the paper collection option, we have set out below the three types of PAD agreement that your customer can set up - single, recurring, and sporadic.
| Single | Recurring | Sporadic | |
|---|---|---|---|
|
Use cases |
A one-off authorization to a one-time transfer of funds. |
A recurring debit at regularly scheduled intervals. |
An advance authorization for future debits initiated by a customer’s affirmative action. |
|
Examples |
Paying an initial upfront charge to join a gym. |
Paying a regular monthly utility bill. |
Paying for actions taken via a brokerage account. |
|
Amount |
Can be any set amount. |
Can be any set amount, or a pre-agreed reasonable range (for it to be “reasonable” it should generally be commensurate with the goods/services being purchased e.g. it would not be reasonable to ask your customer to authorize a $10-$10,000 range for a phone bill). |
Amount can change each time, but it will need to be agreed via your customer’s affirmative action (see “future action by customer”) as well as your pre-notification of the debit 10 days in advance of each sporadic debit. |
|
Frequency |
One-off payment. |
Regular timing (e.g. weekly, monthly, quarterly). |
Irregular timing - as with the amount, it will need to be agreed via your customer’s affirmative action (see “future action by customer”). |
|
Future action by customer |
No future action is required by the customer to initiate the debit. |
No future action by the customer is required to initiate the debit. |
Future debits can only be initiated by the customer through affirmative action - this action needs to: (1) be set out in the authorization (i.e. your customer has to know in advance what action they have to take); and (2) be taken by the customer (e.g. by placing an order with the merchant). An affirmative action cannot be no action. |
|
Changes to Amount or Timing (Frequency) |
Not Applicable - the amount and timing of an executed PAD Agreement cannot be changed. If change is necessary, the customer needs to terminate the existing PAD Agreement and execute a new one. |
If the amount differs from the last debit, or from the pre-agreed amount / range, OR the timings differ from the pre-agreed date / frequency (i.e. if there is an amount or timing change) you must provide your customer with a minimum of 10 calendar days' notice before the debit. |
Not Applicable - future debits can only be initiated by the customer through further affirmative action. Both the amount and timing of the debit is driven by the customer’s affirmative action. |
Paper PAD Agreement
Paper mandates are a great alternative to the online authorization form if your customers do not have access to, or use of, a computer or other electronic device with sufficient internet access.
Paper mandate & merchant guidance
You can find a copy of the paper form and the paper form guidance below:
Paper form
Paper form guidance
Process for collecting a paper PAD Agreement:
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Print the paper PAD form (note that there are some details which you might want to populate in advance - see our paper PAD form guidance for more information)
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Ask your customer to complete and sign the authorization form - ensure all fields are completed
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Provide your customer with a non-changeable electronic (e.g. scanned) or paper copy of the completed authorization form
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Set up your customer in your GoCardless account
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There are three basic steps to setting up a customer in GoCardless, which must be completed in the following order:
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Create the customer record
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Add the customer’s bank account details
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Create a mandate against that bank account
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The precise method you use to do this will be determined by how you've chosen to use GoCardless - via an API integration, using the GoCardless dashboard, or using a partner application. Please follow the relevant guidance linked below:
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Create a mandate using a partner application - how you set up a customer and create a mandate will be dependent on the functionality available to you within the partner application you’re using
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Keep a non-changeable electronic (e.g. scanned) or original paper copy of the completed PAD agreement in your own records for a minimum of 12 months following the last debit processed in accordance with the customer’s PAD agreement (you must provide a copy of these at the request of GoCardless).
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Remember, if your customer has set up a recurring PAD Agreement and you want to change the amount of the payments or if you want to change the timings (or frequency) you must provide your customer with 10 calendar days’ notice
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Remember, if your customer has set up a sporadic PAD agreement, you must seek their affirmative action (the type of action will be set out on the paper form they signed) before creating future payments (and record evidence of this), as well as send them a notification / confirmation 10 calendar days before the date of each subsequent debit