Payments Canada seeks feedback on proposed changes to Pre-Authorized Debit (PAD) framework

Published: November 17, 2021

Payments Canada published a Pre-Authorized Debit (PAD) consultation paper today, to gather feedback on proposed amendments to Rule H1 and the PAD framework.

Rule H1 outlines the procedures for the Exchange for the purpose of Clearing and Settlement of PADs that are supported by an ongoing agreement between a Payor and/or a Payee. Since the last review of Rule H1, new services, users, and technology processes have arisen, prompting a review to ensure it remains relevant and meets the evolving needs of payees and payors.

A working group, including representatives from Payments Canada’s members and its Stakeholder Advisory Council, was established in November 2020 to review identified issues within the PAD framework and conduct a thorough analysis of the various options for consideration to address these issues. 

We invite all interested parties to contribute to the consultation process by providing feedback and comments by January 14, 2022 to