How Telpay’s Debit Funding Option Works

You have decided to make a payment(s) using Telpay’s services; the next important decision is how you will fund the payment(s). You can either fund your payments by debit (Pre-Authorized Debit), where Telpay automatically pulls the funds from your bank account or through online banking (bill payment or direct transfer), where you push funds to Telpay.

These two options have varying benefits depending on your business needs. Most of our customers prefer the speed and convenience of next day payments which is achieved by pushing funds to Telpay through your online banking. On the other hand, some customers prefer using our PAD option because it requires no additional action. While the PAD option appears convenient, it also comes with a longer lead time of 3 to 4 business days.

Let’s take a closer look at how the Telpay debit option works.

Due to the mechanics of the Canadian Clearing system, debits do not clear instantly and therefore Telpay must hold these funds to ensure the debit clears before it can release your payment(s).

Here is an example of PAD funding for a bill payment; note an additional day is required for payroll processing:

1. Telpay initiates a debit from your account on Monday at end of business day.
2. For the next two days – Tuesday and Wednesday – your bank is able to decide if the debit to your account can clear and funds be released to Telpay.
3. On Thursday, once the funds have cleared through the banking system, Telpay releases the payments.

The additional lead time required to fund your payment(s) through a PAD can be easily implemented and part of your business process.

If you have additional questions, you can, of course, contact our customer support team at any time by service@telpay.ca.