The world's local bank
The Canadian Payments Association (CPA) has published the new requirements for Electronic Fund Transfer Pre-Authorized Debits (PADs). They impact all businesses currently issuing PADs.
The new provisions will improve the availability of information to consumers by establishing mandatory requirements for the Payor’s PAD Agreement, which businesses use to obtain their customers’ authorization to debit their bank accounts. In addition, a number of other amendments have been introduced, including the ability for your customers to establish PAD Agreements with you electronically – either by phone or online.
As a result, all businesses using PADs will need to make changes to their existing Payor’s PAD Agreements by February 28, 2010 to reflect these requirements.
You can find a complete summary of the modifications on the CPA website.
What you need to do to comply
HSBC Bank Canada clients who use EFT Pre-Authorized Debit services must complete the following steps by December 31, 2008:
1. Download and complete the Electronic Funds Transfer Change Form.
-
Simply fill in the Company Name and, if known, the EFT ID field
-
Complete one Form for each EFT ID you hold with HSBC Bank Canada
-
Sign the form agreeing to the new terms and conditions
-
Send the completed Form(s) to your Relationship Manager for our records
2. Modify your existing Payor’s PAD Agreement to reflect the mandatory elements introduced by the CPA and submit a copy to your Relationship Manager to confirm it meets the new requirements. For more information, please refer to the Pre-Authorized Debit Agreement Guidelines and Approval process or contact your Relationship Manager.
