ACSS/PAD Payment Terms

Last updated: 2023-03-09

Pre-Authorized Debits (“PADs”) are processed through the Automated Clearing and Settlement Service (the “PAD Service”) operated by Payments Canada.  As with all Payment Methods, your use of Stripe’s products that access the PAD Service bind you to the terms stated below and the Stripe Services Agreement (the “Agreement”).  You accept and agree to comply with all of these terms:

  1. When requesting or issuing PADs through the PAD Service, you are required to comply with Rule H1 of Payments Canada and the other Rules of Payments Canada that supplement such Rule (collectively, the “PAD Rules”).  Payments Canada may amend or replace the PAD Rules and/or the PAD Service at any time. Consequently, Stripe may amend the Agreement, these terms, and/or make changes to the Services as necessary to comply with the PAD Rules and PAD Service, each as amended, supplemented, restated or replaced from time to time. 
  2. You understand and accept your role as the Payee (as defined in the PAD Rules), the Customer’s role as the Payor (as defined in the PAD Rules), and Stripe’s role as payment service provider (as contemplated in the PAD Rules) to you. You will not process any PADs unless the Customer has duly authorized a PAD mandate agreement in a form required under the PAD Rules (the “PAD Agreement”).  You must verify the identity of the Customer and provide all required notices to a Customer as required under the PAD Rules in order to debit their deposit account and initiate a Charge through the PAD Service.  The PAD Agreement and any required notice must be in a form that complies with, and is issued at the times required by, the PAD Rules and the Documentation for PADs.  You will at all times disclose Stripe as a payment service provider in all PAD Agreements. As with other Services, you may not, and may not attempt to, send or receive funds to or from a person, entity, or jurisdiction where such Transactions are prohibited by applicable Law. You also agree to maintain the security and integrity of all information you collect as part of a PAD Agreement and/or PAD Transaction. 
  3. Any Disputes or unauthorized Charges using the PAD Service may result in you becoming unable to accept PADs.  You will provide Stripe with prompt written notification (i) if authorization of a PAD Agreement is revoked by a Customer, (ii) if a Customer initiates a Dispute or requests recourse or reimbursement in connection with any PAD or (iii) if there is a Claim (as defined below).  
  4. The PAD Rules provide a process for Customers to dispute payments.  A Customer can dispute a payment on a “no questions asked” basis for up to 90 calendar days after a debit on a personal account or up to 10 business days for a business account.  The Customer’s bank may honor any dispute within these periods.  If a dispute happens and a reimbursement claim is made, Stripe will immediately debit your Stripe Account (or User Bank Account if necessary) in the amount of the dispute. The PAD Service does not have its own appeals process, so if you believe a Customer has wrongly requested a return on a Transaction, you’ll need to settle the matter outside of Stripe and submit a new Transaction if settled in your favor. 
  5. Without limiting any other provision or indemnity under the Agreement, you agree to (i) observe, perform and be bound by all of the obligations and other terms and conditions of a Payee under the “Payee Letter of Undertaking” set forth in the PAD Rules and (ii) indemnify and hold harmless Stripe and each applicable Financial Services Provider from and against any and all losses, costs, fees, damages, expenses, liabilities, claims, suits and demands whatsoever (each, a “Claim”) that Stripe or a Financial Services Provider may suffer, incur or be under or that may be made or brought against Stripe or a Financial Services Provider by any person and for any reason of or in any way arising out of the action in drawing and issuing any PAD.