What is a PAD agreement and what is it used for?

A Preauthorized Debit (PAD) is a convenient way to pay bills and make payments automatically.

A Preauthorized Debit (PAD) occurs when a company or financial institution is given permission by a customer to debit their bank account when a payment or bill is due. Rather than waiting for the customer to send the payment, the organization is able to safely and automatically collect the payment on a certain date. 

Jetpay uses two types of Preauthorized Debit Agreements:

  • One is used when sending money to a contact;
  • the other is used for the collection of your monthly transactional fees (find out more about when and how you are billed here).

You will be asked to sign a Jetpay variable PAD when you add a bank account, which allows the company to withdraw variable amounts of funds as needed in the future. You will receive a copy of the PAD via email.

 


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