What Is A PAD Payment? 

Bank Account Payments Through Digital PADs

Types of PADs

Personal PADs

• A way for individuals or organizations to authorize specific payees to withdraw funds directly from their bank accounts

Business PADs

• With customer authorization, businesses can automatically withdraw funds for subscriptions, goods and/or services provided

Cash Management PADs

• Allows businesses to transfer, consolidate or reposition funds between the account of one entity to another (i.e., from a parent company to its subsidiary)
• It can be drawn on a business account for that same business or closely affiliated company, but the accounts are typically held at different banks.

Funds Transfer PADs

• For individuals who wish to draw on their own account to transfer funds to another account that they own at a different bank

Setting Up PAD Payments For Your Customers

What To Include In A PAD Payment

1. Date of agreement and signature
2. Payer's authorization
3. PAD category
   1. (1) Personal - mortgage, rent, etc.
   2. (2) Business - lease, supplies, etc.
   3. (3) Funds transfer - retirement savings contributions
4. If an amount is fixed or varied (with necessary statements and notifications)
5. Frequency of withdrawals (weekly, monthly, recurring set date, etc.)
6. Instructions for how to cancel the agreement
7. Biller's contact information
8. Information on payer's recourse rights