by Andre Glicenstajn, Sales Manager
One thing we probably do not focus enough on here at Telpay is our ability to let our clients manage their accounts receivable through pre-authorized debits (PADs). We are known as a leader in electronic payments and direct deposits, but we can also help our partners and clients with collections with PADs.
Payments Canada has a set of PAD rules and standards that all businesses have to follow. These rules protect the account holder from any abuse. However, as long as requirements are met, this is a service of significant advantage to everyone. It is always important to remember that giving one’s permission to withdraw funds from a bank account is serious business and at Telpay, we ensure your rights and responsibilities are always clear. For example, to help protect account holders from improper withdrawals, PAD samples used by our clients are reviewed to make sure they meet the requirements established by Payments Canada.
PADs are probably the best option to use when collecting recurring payments such as rents, mortgages, monthly fees, and insurance premiums. However, regular monthly billings such as bookkeeping and accounting services fees, professional and club dues can also be collected. Also, again, it is important to remember that you must have your customer’s permission to debit their accounts. Telpay can help you with the forms and rules.
With Telpay for Business electronic payment software, you can efficiently manage your collections list, import a collection file, and maintain the collection file. If you are an existing Telpay for Business customer, to get started all you need to do is apply for the PAD service. There is a setup fee and transaction fee, but no extra monthly fee, making it even more affordable to use.
Here are some tips for a successful implementation of PADs:
1. Make sure your billings are of a type that suits the requirements of Payments Canada. Only recurring types of billings are permitted.
2. Get permission from your customers to debit their bank account using the required form.
3. Notify your customers when you are ready to begin debiting them. Telpay notifies its customers that they will be debiting approximately ten (10) days in advance of actual debit. This gives your customers time to view your bill before they are debited.
4. With our PAD service, you send us a file of your monthly debits. Telpay will then debit your customers on the day specified and forward the funds to your bank account as soon as they are cleared. Typically there is a four (4) day hold.
To learn more about PADs, contact 1-800-665-0302 or visit telpay.ca/for-business/get-paid.