[{"data":1,"prerenderedAt":523},["ShallowReactive",2],{"document-pre-authorized-payment-D288":3},{"document":4,"label":24,"preview":11,"thumb":25,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":26,"breadcrumb":30,"related":36,"customDescModule":177,"customdescription":6,"mdFm":178,"mdProseHtml":522},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":23},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: PRE-AUTHORIZED PAYMENT, VARYING AMOUNT Dear [Contact name], This letter is to acknowledge that [COMPANY/INDIVIDUAL] is hereby authorized to withdraw the amount due on our [NATURE OF CHARGES] on a [PERIOD OF PAYMENT] basis on the [NUMBER OF DAYS AFTER BILLING DATE] day after the billing date: ",null,"Pre-Authorized Payment","1",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/pre-authorized-payment-D288.png","https://templates.business-in-a-box.com/imgs/250px/288.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#288.xml",{"title":15,"description":6},"pre-authorized payment",[17,20],{"label":18,"url":19},"Finance & Accounting","/templates/finance-accounting/",{"label":21,"url":22},"Business Banking","/templates/business-banking/","pre authorized payment","Pre-Authorized Payment Template","https://templates.business-in-a-box.com/imgs/400px/288.png",[27,17,20],{"label":28,"url":29},"Templates","/templates/",[31,32,33],{"label":28,"url":29},{"label":18,"url":19},{"label":34,"url":35},"Payments & Treasury","/templates/payments-and-treasury/",[37,41,45,49,53,57,61,65,69,73,77,81,85,99,116,131,148,163],{"label":38,"url":39,"thumb":40,"extension":10},"Pre-Authorized Payment_Specific Amount","/template/pre-authorized-payment_specific-amount-D289","https://templates.business-in-a-box.com/imgs/250px/289.png",{"label":42,"url":43,"thumb":44,"extension":10},"Payment Collections Policy","/template/payment-collections-policy-D13744","https://templates.business-in-a-box.com/imgs/250px/13744.png",{"label":46,"url":47,"thumb":48,"extension":10},"Late Payment Letter","/template/late-payment-letter-D448","https://templates.business-in-a-box.com/imgs/250px/448.png",{"label":50,"url":51,"thumb":52,"extension":10},"Payment on Specific Accounts","/template/payment-on-specific-accounts-D455","https://templates.business-in-a-box.com/imgs/250px/455.png",{"label":54,"url":55,"thumb":56,"extension":10},"Checklist Pre-Layoff","/template/checklist-pre-layoff-D505","https://templates.business-in-a-box.com/imgs/250px/505.png",{"label":58,"url":59,"thumb":60,"extension":10},"Checklist Pre-Employment","/template/checklist-pre-employment-D567","https://templates.business-in-a-box.com/imgs/250px/567.png",{"label":62,"url":63,"thumb":64,"extension":10},"Pre-Interview Questionnaire","/template/pre-interview-questionnaire-D585","https://templates.business-in-a-box.com/imgs/250px/585.png",{"label":66,"url":67,"thumb":68,"extension":10},"Pre-Incorporation Agreement","/template/pre-incorporation-agreement-D1013","https://templates.business-in-a-box.com/imgs/250px/1013.png",{"label":70,"url":71,"thumb":72,"extension":10},"Cancellation of Stop Payment Order","/template/cancellation-of-stop-payment-order-D443","https://templates.business-in-a-box.com/imgs/250px/443.png",{"label":74,"url":75,"thumb":76,"extension":10},"Demand for Extension of Payment Date","/template/demand-for-extension-of-payment-date-D444","https://templates.business-in-a-box.com/imgs/250px/444.png",{"label":78,"url":79,"thumb":80,"extension":10},"Friendly Apology for Late Payment","/template/friendly-apology-for-late-payment-D446","https://templates.business-in-a-box.com/imgs/250px/446.png",{"label":82,"url":83,"thumb":84,"extension":10},"Monthly Partial Payment to Creditor","/template/monthly-partial-payment-to-creditor-D449","https://templates.business-in-a-box.com/imgs/250px/449.png",{"description":86,"descriptionCustom":6,"label":87,"pages":8,"size":9,"extension":10,"preview":88,"thumb":89,"svgFrame":90,"seoMetadata":91,"parents":93,"keywords":92,"url":98},"CREDIT CARD BILLING AUTHORIZATION FORM ","Credit Card Billing Authorization Form","https://templates.business-in-a-box.com/imgs/1000px/credit-card-billing-authorization-form-D256.png","https://templates.business-in-a-box.com/imgs/250px/256.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#256.xml",{"title":92,"description":6},"credit card billing authorization form",[94,97],{"label":95,"url":96},"Credit & Collection","credit-collection",{"label":95,"url":96},"/template/credit-card-billing-authorization-form-D256",{"description":100,"descriptionCustom":6,"label":101,"pages":102,"size":9,"extension":10,"preview":103,"thumb":104,"svgFrame":105,"seoMetadata":106,"parents":108,"keywords":107,"url":115},"LOAN AGREEMENT This Loan Agreement (\"Agreement\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] Promise to Pay Within [NUMBER] months from today, Borrower promises to pay to Lender the sum of [AMOUNT], and interest and other charges stated below. Responsibility Although this Agreement may be signed below by more than one person, Borrower understands that both parties are individuals responsible for paying back the full amount. Breakdown of Loan Amount of Loan: Other (Describe): Amount Financed: Finance Charge: Total of Payments: Annual Rate: Repayment Borrower will repay the amount of this note in [NUMBER] equal uninterrupted monthly installments of [AMOUNT] each on the [DAY] of each month starting on the [DATE], and ending on [DATE]. Prepayment Borrower has the right to prepay the whole outstanding amount at any time","Loan Agreement","2","https://templates.business-in-a-box.com/imgs/1000px/loan-agreement-D417.png","https://templates.business-in-a-box.com/imgs/250px/417.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#417.xml",{"title":107,"description":6},"loan agreement",[109,111,114],{"label":18,"url":110},"finance-accounting",{"label":112,"url":113},"Business Loans","business-loan",{"label":112,"url":113},"/template/loan-agreement-D417",{"description":117,"descriptionCustom":6,"label":118,"pages":119,"size":9,"extension":10,"preview":120,"thumb":121,"svgFrame":122,"seoMetadata":123,"parents":125,"keywords":124,"url":130},"SERVICE AGREEMENT This SERVICE AGREEMENT (\"Agreement\") is effective [DATE], BETWEEN: [COMPANY NAME] (the \"Contractor\"), a company organized and existing under the laws of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [COMPANY NAME] (the \"Customer\"), a company organized and existing under the laws of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] (The Contractor and the Customer shall be individually referred to as a \"Party\" and collectively referred to as the \"Parties\", as the context may require). WHEREAS A. Contractor has experience and expertise in [DESCRIBE EXPERIENCE AND SERVICE]. B. Customer desires to have Contractor provide services for them. C. Contractor desires to provide services to Customer on the terms and conditions set forth herein (the \"Services\"). NOW THEREFORE, in consideration of the above recitals, the representations, warranties, and agreements contained in this Agreement and for other good and valuable consideration, the receipt and adequacy of which are now acknowledged, the Parties agree as follows: SERVICES PROVIDED Beginning on upon agreement to this contract, [CONTRACTOR] will provide to [CUSTOMER] the following service (collectively, the /Services\"): Description of the project: [DESCRIBE THE SERVICE REQUIRED]. SCOPE OF WORK Contractor agrees to provide Services pursuant to the Scope of Work set forth in Exhibit A attached hereto (the \"Scope of Work\"). TERM Unless both parties mutually agree on an extension, this contract will automatically terminate on [SPECIFY]. PERFORMANCE The parties agree to do everything possible to ensure that the terms of this Agreement take effect. PAYMENT FOR SERVICES In exchange for the Services rendered, a payment of [SPECIFY] will be made to the Contractor upon completion of the scheduled Services described in this Contract. If an invoice is not paid on the due date, interest will be added to the current balance. These amounts shall be payable, and the Customer shall pay all overdue amounts at the lesser of [SPECIFY] per cent per annum or the maximum percentage permitted by applicable law. Or Customer will pay Contractor as follows: [SPECIFY]. DELIVERY OF SERVICES The Contractor will exercise due diligence in the provision of services. However, the Customer acknowledges that the indicated delivery times and other payment milestones listed in Scope of Work are estimates and do not constitute final delivery dates. SECURITY The Contractor must make reasonable security arrangement to protect Material from unauthorized access, collection, use, alteration or disposal. OWNERSHIP RIGHT The Customer shall hold the copyright for the agreed version of the Services as delivered, and the Customer's copyright notice may be displayed in the final version. All works, ideas, discoveries, inventions, patents, products or other information that may be protected by copyright (collectively, the \"Work Product\" developed in whole or in part by the Contractor in connection with the Services, shall be the exclusive property of the Customer. Upon request, the Contractor shall execute all documents necessary to confirm or perfect the exclusive ownership of the Customer's \"Work Product\". The Contractor retains exclusive rights to pre-existing materials used in the Customer's projects. The Customer shall not have the right to reuse, resell or otherwise transfer material belonging to the contractor or third parties. The Contractor reserves the right to use the finished public product as an example of a product. RETURN OF PROPERTY Upon the expiry or termination of this Agreement, the Contractor will return to the Customer any property, documentation, records or Confidential Information which is the property of the Customer. COMPENSATION For all services rendered by the Contractor under this Agreement, the Customer shall indemnify the Contractor. In the event that the Customer fails to make any of the payments mentioned, the Contractor shall have the right, but shall not be obliged, to exercise any of the following remedies: ","Service Agreement","6","https://templates.business-in-a-box.com/imgs/1000px/service-agreement-D12711.png","https://templates.business-in-a-box.com/imgs/250px/12711.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12711.xml",{"title":124,"description":6},"service agreement",[126,129],{"label":127,"url":128},"Legal Agreements","business-legal-agreements",{"label":127,"url":128},"/template/service-agreement-D12711",{"description":132,"descriptionCustom":6,"label":133,"pages":134,"size":135,"extension":10,"preview":136,"thumb":137,"svgFrame":138,"seoMetadata":139,"parents":140,"keywords":146,"url":147},"SECURED INSTALLMENT NOTE This Secured Installment Note (the \"Note\") is made and effective the [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Maker\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [INSTITUTION NAME] (the \"Institution\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] TERMS OF NOTE For value received, Maker promises to pay to the order of Institution, the principal sum of [AMOUNT] with interest thereon at [%] per annum in installments as follows: [NUMBER] monthly installments of [AMOUNT] each, beginning on [DATE], and on the same date of each month thereafter, ending on [DATE]. PREPAYMENT OF NOTE If this note is prepaid in full before [DATE], Institution shall charge Maker [AMOUNT] to cover acquisition costs of Institution. ACCELERATION ON DEFAULT If any installment due on this note is not paid at the time and place specified in this note, the entire unpaid balance shall be payable immediately at the election of Institution. COLLATERAL To secure the payment of this note, Maker has pledged with Institution the following property: [DESCRIBE] with a market value of [AMOUNT] as of [DATE]. Maker also pledges as collateral any additions to or substitutions for the pledged property, together with all money and other property held by Institution on deposit or otherwise for the account of Maker or in which Maker has an interest. ADDITIONAL COLLATERAL Institution may call for additional collateral if Institution determines in its sole discretion that additional collateral is necessary for its protection. If Maker fails to supply the additional collateral that Institution calls for within [NUMBER] days from the date of request, this note shall, at the option of Institution, become immediately due and payable. SALE OF COLLATERAL ON DEFAULT On default by Maker of any obligation of this note, Institution may immediately, and without notice or advertisement, sell at public or private auction the collateral pledged under this note. If the sale is public, Institution may purchase the collateral or any part thereof. PROCEEDS OF SALE","Secured Installment Note","3",38,"https://templates.business-in-a-box.com/imgs/1000px/secured-installment-note-D440.png","https://templates.business-in-a-box.com/imgs/250px/440.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#440.xml",{"title":6,"description":6},[141,142,143],{"label":18,"url":110},{"label":112,"url":113},{"label":144,"url":145},"Promissory Notes","promisory-note","secured installment note","/template/secured-installment-note-D440",{"description":149,"descriptionCustom":6,"label":150,"pages":8,"size":151,"extension":10,"preview":152,"thumb":153,"svgFrame":154,"seoMetadata":155,"parents":156,"keywords":161,"url":162},"Invoice Company: Complete Address: ______________________________________________________ Phone:_________________ Fax: ________________ Email: _____________________ INVOICE #: _____________ DATE: ________________ Bill to: Address: _______________________________________ City: __________________________________________ State/Province: ___________ Zip/postal code__________ Country: ________________ Phone: _________________ Fax: __________________ Email: _________________________________________ Ship To:","Commercial Sales Invoice",42,"https://templates.business-in-a-box.com/imgs/1000px/sales-invoice-D383.png","https://templates.business-in-a-box.com/imgs/250px/383.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#383.xml",{"title":6,"description":6},[157,158],{"label":18,"url":110},{"label":159,"url":160},"Invoices & Receipts","invoice-receipt","sales invoice","/template/sales-invoice-D383",{"description":164,"descriptionCustom":6,"label":165,"pages":134,"size":166,"extension":10,"preview":167,"thumb":168,"svgFrame":169,"seoMetadata":170,"parents":171,"keywords":175,"url":176},"PROMISSORY NOTE This Promissory Note (the \"Note\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] TERMS FOR VALUE RECEIVED, the Borrower promises to pay to the order of Lender, at its principal office located at [ADDRESS], or at such other place that is designated in writing by the holder hereof, the principal sum of [AMOUNT], together with all charges and interest herein provided, payable at the rate and in the manner hereinafter set forth: Borrower shall make monthly payments of principal and interest at the rate of [%] per annum based upon an amortization of [NUMBER] months. Monthly payments shall be due on or before the first day of each month with the first payment being due on or before [DATE]. If not sooner paid, all amounts due under this Note, including principal, interest and other charges shall be due and payable in full on or before the first day of [MONTH], [YEAR] (the \"Maturity Date\"). Time is of the essence of the payment obligations hereunder and each monthly payment shall be due and payable on or before the first day of each month. This Note is and will be secured by a certain first priority security interest in all of the tangible and intangible property of the Borrower, to be recorded in all applicable governmental offices. The parties shall execute a separate security agreement, in form and substance acceptable to the Lender in all respects. Borrower agrees to execute any such security agreements presented by the Lender or other documents required by the Lender in order to perfect its security interest in the above described property. Said Security Agreement and any other instruments and documents executed in connection with or given as security for this Note shall hereinafter be referred to collectively as the \"Loan Documents.\" All of the terms, covenants, Conditions, representations and warranties contained in the Loan Documents are hereby made part of this Note to the same extent and with the same force and effect as if fully set forth herein. If all or any portion of any payment due hereunder is not received by the Lender within [NUMBER] calendar days after the date when such payment is due, Borrower shall pay a late charge equal to [%] of such payment, such late charge to be immediately due and payable without demand by Lender. Borrower shall have the right to prepay all (but not a portion) of the indebtedness evidenced by this Note at any time, by paying the Lender an amount equal to the sum of (I) the principal balance then outstanding, (ii) all interest accrued to the date of such prepayment, (iii) all interest calculated through the Maturity Date, and (iv) any late charge or charges then due and owing. If any payment under this Note is not paid in full by the [DAY] of any month during the term hereof or if the entire amount due as represented by this Note is not paid in full on or before the Maturity Date, or should default be made in the performance or observation of any of the terms, covenants, or conditions contained in the Loan Documents, or if any representation or warranty contained in the Loan Documents is breached or is or becomes untrue, this Note shall be in default, and the entire principal amount outstanding hereunder, accrued interest thereon, all late charges, if any, and any and all other charges due hereunder, shall, at Lender's option, immediately become due and payable, without further notice, the giving of such notice being expressly waived by the Borrower","Promissory Note",39,"https://templates.business-in-a-box.com/imgs/1000px/promissory-note-D434.png","https://templates.business-in-a-box.com/imgs/250px/434.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#434.xml",{"title":6,"description":6},[172,173,174],{"label":18,"url":110},{"label":112,"url":113},{"label":144,"url":145},"promissory note","/template/promissory-note-D434",false,{"seo":179,"reviewer":192,"legal_disclaimer":196,"quick_facts":197,"at_a_glance":199,"personas":203,"variants":228,"glossary":255,"clauses":289,"how_to_fill":340,"common_mistakes":381,"faqs":406,"industries":434,"comparisons":451,"diy_vs_lawyer":465,"jurisdictions":478,"related_template_ids_curated":499,"schema":509,"classification":510},{"meta_title":180,"meta_description":181,"primary_keyword":182,"secondary_keywords":183},"Pre-Authorized Payment Template | BIB","Free pre-authorized payment agreement template. Covers recurring debit authorization, payment terms, cancellation rights, and NSF fees.","pre-authorized payment template",[184,185,186,187,188,189,190,191],"pre-authorized debit agreement template","pre-authorized payment form","recurring payment authorization form","ach authorization form template","direct debit authorization template","pre-authorized payment agreement","automatic payment authorization form","pre-authorized debit form free",{"name":193,"credential":194,"reviewed_date":195},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":198,"legal_review_recommended":196,"signature_required":196,"notarization_required":177},"medium",{"what_it_is":200,"when_you_need_it":201,"whats_inside":202},"A Pre-Authorized Payment Agreement is a legally binding document in which a payor (customer or debtor) authorizes a payee (business or creditor) to withdraw a fixed or variable amount from a specified bank account or payment card on a recurring basis. This free Word download lets you collect, document, and store that authorization — covering payment amount, frequency, account details, cancellation rights, and NSF fee terms — and export it as PDF for signature before the first charge runs.\n","Use it any time you bill customers on a scheduled recurring basis — monthly subscriptions, installment plans, membership dues, or lease payments — and need written authorization before initiating a bank debit or card charge. A signed agreement is required by ACH network rules in the US, Payments Canada rules for PADs, and equivalent schemes in the UK and EU.\n","Payor and payee identification, authorized bank account or card details, payment amount and frequency, start and end date, notice requirements for changes, NSF and failed-payment fee terms, cancellation procedure, and dispute resolution. The agreement also includes a signature block and date field to confirm the payor's informed consent.\n",[204,208,212,216,220,224],{"title":205,"use_case":206,"icon_asset_id":207},"SaaS and subscription businesses","Collecting signed ACH or PAD authorization before billing monthly or annual plans","persona-saas-founder",{"title":209,"use_case":210,"icon_asset_id":211},"Property managers and landlords","Setting up automatic monthly rent collection directly from tenant bank accounts","persona-property-manager",{"title":213,"use_case":214,"icon_asset_id":215},"Fitness studios and gyms","Authorizing recurring membership dues debited on the first of each month","persona-small-business-owner",{"title":217,"use_case":218,"icon_asset_id":219},"Lenders and finance companies","Documenting installment loan repayments drawn from a borrower's account on set dates","persona-lender",{"title":221,"use_case":222,"icon_asset_id":223},"Professional services firms","Billing retainer clients on a fixed monthly schedule without issuing manual invoices","persona-professional-services",{"title":225,"use_case":226,"icon_asset_id":227},"Nonprofits and charities","Setting up recurring donor contributions debited monthly or annually","persona-nonprofit-exec",[229,233,236,240,244,248,252],{"situation":230,"recommended_template":231,"slug":232},"Fixed monthly charge for a subscription or membership","Pre-Authorized Payment Agreement (Fixed Amount)","pre-authorized-payment-D288",{"situation":234,"recommended_template":235,"slug":232},"Variable billing amounts that change each cycle based on usage","Variable Pre-Authorized Debit Agreement",{"situation":237,"recommended_template":238,"slug":239},"One-time advance authorization for a single future charge","One-Time Payment Authorization Form","overtime-authorization-form-D677",{"situation":241,"recommended_template":242,"slug":243},"Installment repayment schedule tied to a loan agreement","Loan Repayment Agreement","secured-lumpsum-promissory-note-agreement-D13041",{"situation":245,"recommended_template":246,"slug":247},"Recurring credit card charge rather than bank account debit","Credit Card Authorization Form","credit-card-billing-authorization-form-D256",{"situation":249,"recommended_template":250,"slug":251},"Tenant rent collected automatically each month","Rental Payment Authorization","house-rental-agreement-D12768",{"situation":253,"recommended_template":254,"slug":239},"Donor pledge collected on a recurring charitable giving schedule","Donation Authorization Form",[256,259,262,265,268,271,274,277,280,283,286],{"term":257,"definition":258},"Pre-Authorized Debit (PAD)","A Canadian payment mechanism governed by Payments Canada Rule H1 that allows a business to pull funds from a customer's bank account with prior written consent.",{"term":260,"definition":261},"ACH Authorization","Written permission from a US account holder allowing a third party to initiate Automated Clearing House debit entries against their bank account.",{"term":263,"definition":264},"Payor","The individual or entity whose bank account or payment card is being debited — typically the customer, tenant, or borrower.",{"term":266,"definition":267},"Payee","The business or individual receiving the authorized payment — the party initiating the debit on the agreed schedule.",{"term":269,"definition":270},"RDFI (Receiving Depository Financial Institution)","The payor's bank — the institution that receives the debit instruction and debits the payor's account.",{"term":272,"definition":273},"NSF Fee","A 'non-sufficient funds' charge assessed when a debit attempt fails because the payor's account lacks sufficient balance to cover the payment.",{"term":275,"definition":276},"Revocation Notice","Formal written notice from the payor cancelling their authorization, typically required 10–30 days before the next scheduled debit.",{"term":278,"definition":279},"Pre-Notification","Advance notice sent to the payor before the first debit or before a change in amount, informing them of the exact amount and date of the upcoming charge.",{"term":281,"definition":282},"SEPA Direct Debit","The EU's standardized direct debit scheme allowing euro-denominated recurring payments across 36 participating countries using a standardized mandate form.",{"term":284,"definition":285},"Indemnification Clause","A provision under which the payee agrees to reimburse the payor's bank for any losses arising from an unauthorized or erroneous debit instruction.",{"term":287,"definition":288},"Recurrence Period","The defined interval between authorized charges — weekly, bi-weekly, monthly, quarterly, or annually — as stated in the agreement.",[290,295,300,305,310,315,320,325,330,335],{"name":291,"plain_english":292,"sample_language":293,"common_mistake":294},"Parties and account identification","Identifies the payor by full legal name and the payee by business name, and specifies the exact bank account — institution name, transit/routing number, and account number — authorized for debiting.","I, [PAYOR FULL NAME], authorize [BUSINESS NAME] ('Company') to debit my account at [FINANCIAL INSTITUTION NAME], Transit/Routing No. [XXXXXX], Account No. [XXXXXXXXXX], for the payments described below.","Recording only the last four digits of the account number on the authorization form. Payment processors and banks require the full account number to initiate an ACH or PAD entry; partial numbers cause processing failures.",{"name":296,"plain_english":297,"sample_language":298,"common_mistake":299},"Payment amount and frequency","States the exact dollar amount (or the formula for calculating a variable amount) and the schedule — weekly, monthly, quarterly — on which debits will occur.","The authorized debit amount is $[AMOUNT] per [WEEK / MONTH / QUARTER], drawn on the [DAY] of each [WEEK / MONTH]. For variable amounts, the Company will provide [X] days' notice of the amount before each debit.","Using approximate language like 'approximately $X' for fixed-amount authorizations. Courts and payment networks require a specific, unambiguous amount — vague figures void the authorization.",{"name":301,"plain_english":302,"sample_language":303,"common_mistake":304},"Start date and end date","Specifies when the first authorized debit will occur and whether the authorization runs indefinitely or terminates on a defined date or event.","Debits will commence on [START DATE] and will continue on the same day of each subsequent [PERIOD] until [END DATE / the outstanding balance reaches $0 / this authorization is revoked in writing].","Leaving the end date blank on installment agreements. An open-ended authorization on a fixed-term loan creates a disputed overpayment risk if the payor doesn't cancel after the final installment.",{"name":306,"plain_english":307,"sample_language":308,"common_mistake":309},"Notice of change in amount or frequency","Requires the payee to provide advance written notice — typically 10–30 days — before changing the debit amount or schedule, and gives the payor an opportunity to cancel before the change takes effect.","The Company will provide [10 / 30] days' written notice to the Payor at [EMAIL / MAILING ADDRESS] before any change in the debit amount, frequency, or account charged takes effect.","Omitting the notice-of-change clause entirely. Payments Canada Rule H1 and the US NACHA operating rules both mandate pre-notification of amount changes — non-compliance exposes the payee to chargeback and indemnification liability.",{"name":311,"plain_english":312,"sample_language":313,"common_mistake":314},"NSF and failed-payment fees","Sets out the fee the payee will charge — or pass through from the bank — when a debit attempt is returned for non-sufficient funds, and states how many retry attempts are permitted.","If a debit is returned NSF or unpaid for any reason, the Payor authorizes the Company to charge an NSF fee of $[AMOUNT] per returned item and to re-attempt the debit up to [2] times within [10] business days.","Setting an NSF fee without checking the maximum fee permitted in the applicable jurisdiction. Several US states and Canadian provinces cap NSF fees by statute — exceeding the cap voids fee collection and may trigger consumer-protection penalties.",{"name":316,"plain_english":317,"sample_language":318,"common_mistake":319},"Cancellation and revocation procedure","Describes exactly how the payor can cancel the authorization — written notice, minimum advance notice period, and the contact address to which notice must be sent.","The Payor may revoke this authorization at any time by providing written notice to [COMPANY NAME] at [EMAIL / MAILING ADDRESS] no later than [10] business days before the next scheduled debit. Revocation does not affect amounts already debited or outstanding obligations under any underlying agreement.","Requiring more than 30 days' cancellation notice for a consumer PAD or ACH authorization. Payments Canada and NACHA consumer rules require that cancellation take effect within 10–30 business days — longer notice periods are unenforceable against consumers.",{"name":321,"plain_english":322,"sample_language":323,"common_mistake":324},"Payor dispute and reimbursement rights","Informs the payor of their right to dispute a debit they believe was unauthorized or incorrect, the time window for filing a dispute with their bank, and the process for obtaining a refund.","The Payor has certain recourse rights if any debit does not comply with this authorization. For a PAD that was not properly authorized, the Payor may obtain reimbursement from their financial institution by contacting them within [90] calendar days of the debit date.","Omitting the dispute-rights disclosure entirely. Payments Canada Rule H1 and NACHA consumer rules both require a recourse statement — its absence renders the authorization non-compliant and exposes the payee to unlimited chargeback liability.",{"name":326,"plain_english":327,"sample_language":328,"common_mistake":329},"Underlying agreement reference","Cross-references the contract, membership agreement, loan agreement, or lease that gives rise to the payment obligation, making clear that the PAD or ACH authorization supplements but does not replace that underlying document.","This authorization is given in connection with the [SERVICE AGREEMENT / LOAN AGREEMENT / LEASE AGREEMENT] dated [DATE] between the parties ('Underlying Agreement'). Revocation of this authorization does not affect the Payor's obligations under the Underlying Agreement.","Omitting the underlying agreement reference and treating the PAD authorization as a standalone contract. Without the reference, a revoked authorization appears to extinguish the entire payment obligation rather than just the debit mechanism.",{"name":331,"plain_english":332,"sample_language":333,"common_mistake":334},"Indemnification of financial institution","Confirms that the payee will indemnify the payor's bank against any claims, losses, or costs arising from debits initiated in excess of or contrary to the authorization.","The Company agrees to indemnify and hold harmless the Payor's financial institution from any and all claims, damages, or costs arising from any debit initiated by the Company that exceeds the amount authorized or that is initiated after proper revocation has been received.","Reversing the indemnification so the payor indemnifies the payee's bank. The standard commercial practice and Payments Canada/NACHA rules require the originating party — the payee — to bear indemnification liability toward the receiving bank.",{"name":336,"plain_english":337,"sample_language":338,"common_mistake":339},"Governing law and entire agreement","Specifies which jurisdiction's law governs the authorization, confirms that the written authorization is the complete and final record of the payor's consent, and supersedes any prior verbal authorizations.","This authorization is governed by the laws of [STATE / PROVINCE / COUNTRY]. It constitutes the entire authorization of the Payor for the debits described herein and supersedes any prior oral or written authorizations for the same payments.","Choosing a governing law that does not match the payor's location. Consumer protection laws — including maximum NSF fees, notice periods, and dispute windows — apply based on where the consumer resides, not where the business is incorporated.",[341,346,351,356,361,366,371,376],{"step":342,"title":343,"description":344,"tip":345},1,"Identify both parties and their roles","Enter the payor's full legal name (individual or business entity) and the payee's registered business name. For business payors, include the authorized signatory's name and title.","For consumer authorizations, use the name exactly as it appears on the bank account to avoid processing mismatches.",{"step":347,"title":348,"description":349,"tip":350},2,"Record the full bank account details","Enter the financial institution name, the full routing or transit number, and the complete account number. Do not use masked or partial account numbers on the authorization form itself — keep the signed original in a secure, access-controlled location.","Scan and store the signed original in an encrypted document vault; never transmit the signed form by unencrypted email.",{"step":352,"title":353,"description":354,"tip":355},3,"Specify the exact payment amount and frequency","State the dollar amount to the cent for fixed payments. For variable amounts, describe the formula or cap clearly — for example, 'the monthly invoice total, not to exceed $[MAXIMUM AMOUNT].' Set the recurrence interval and the specific day of the week or month the debit will run.","If your business uses tiered pricing that changes at contract renewal, add a notice-of-change period of at least 10 business days to avoid compliance failures.",{"step":357,"title":358,"description":359,"tip":360},4,"Set the start date and termination condition","Enter the first debit date and choose a termination condition: a specific end date, a total number of payments, a balance reaching zero, or an open-ended authorization that runs until revoked. Match the termination condition to the underlying agreement's payment schedule.","For installment loans, calculate the exact number of payments and state it explicitly — 'this authorization covers [24] monthly debits' — rather than relying on an open-ended authorization.",{"step":362,"title":363,"description":364,"tip":365},5,"Set the NSF fee and retry policy","Enter your NSF fee amount (verify the statutory cap in the payor's jurisdiction) and state the maximum number of retry attempts and the window within which retries will occur. Two retries within 10 business days is the standard commercial practice.","Inform your payment processor of your retry policy — some processors have their own network rules that override the number of retries in your authorization form.",{"step":367,"title":368,"description":369,"tip":370},6,"Include the dispute rights and cancellation procedure","State the payor's right to dispute an unauthorized debit and the 90-day window for filing with their bank. Describe the cancellation procedure — written notice, minimum advance notice period, and the exact address or email for revocation notices.","For Canadian PADs, the dispute window is 90 days for unauthorized debits and 10 business days for debits that do not comply with the authorization — include both in your form.",{"step":372,"title":373,"description":374,"tip":375},7,"Cross-reference the underlying agreement","Enter the name, date, and parties of the contract, lease, or loan agreement that creates the underlying payment obligation. This prevents the payor from arguing that revoking the authorization eliminates the debt itself.","Attach a copy of the underlying agreement to the PAD authorization at signing so both documents share the same execution date.",{"step":377,"title":378,"description":379,"tip":380},8,"Obtain a wet or electronic signature before the first debit","Both parties should sign and date the form before the first scheduled debit runs. For electronic signatures, use a compliant e-signature platform that captures a timestamp and IP address.","Send the signed copy to the payor immediately after execution — Payments Canada Rule H1 requires that the payor receive a copy of their signed authorization.",[382,386,390,394,398,402],{"mistake":383,"why_it_matters":384,"fix":385},"Initiating a debit without a signed authorization on file","ACH and PAD network rules treat an unsupported debit as unauthorized — the payor's bank can reverse it at any time, and the originating bank will charge the payee a return fee plus potential penalty. Repeated violations result in suspension from the payment network.","Obtain a signed authorization before running any debit and store it for a minimum of 3 years after the last transaction — the standard audit retention period under NACHA and Payments Canada rules.",{"mistake":387,"why_it_matters":388,"fix":389},"Using vague or approximate amounts in a fixed-payment authorization","Language like 'approximately $50 per month' does not constitute a valid fixed-amount authorization under NACHA or Payments Canada rules — the exact amount must be stated, and the debit must match it.","State the precise dollar-and-cent amount for every fixed recurring charge. For variable billing, add a notification-of-amount clause requiring advance written notice before each debit.",{"mistake":391,"why_it_matters":392,"fix":393},"Omitting the payor's dispute and recourse rights","Consumer protection regulations in the US, Canada, UK, and EU require that payors be informed of their right to dispute unauthorized charges. Omitting this disclosure exposes the payee to regulatory fines and unlimited chargeback liability.","Include a dedicated dispute-rights clause citing the applicable dispute window — 90 days under Payments Canada Rule H1, 60 days under Regulation E in the US — and the payor's right to contact their financial institution.",{"mistake":395,"why_it_matters":396,"fix":397},"Setting an NSF fee above the statutory maximum","Multiple US states cap NSF fees at $20–$35 per item, and some Canadian provinces have similar limits. Charging above the cap violates consumer-protection statutes and can trigger class-action exposure.","Check the NSF fee cap for each jurisdiction in which you bill customers before finalizing your authorization form, and set your fee at or below the lowest applicable cap if you operate across multiple states or provinces.",{"mistake":399,"why_it_matters":400,"fix":401},"Failing to send the payor a copy of their signed authorization","Payments Canada Rule H1 explicitly requires that the payee provide the payor with a copy of the signed PAD agreement. Failure to do so makes the authorization non-compliant and gives the payor grounds to dispute any debit indefinitely.","Automate a copy of the signed authorization to the payor's email immediately after execution, and retain proof of delivery in your records.",{"mistake":403,"why_it_matters":404,"fix":405},"No reference to the underlying payment obligation","When a payor revokes the PAD or ACH authorization, some interpret revocation as cancelling the entire debt — especially if the authorization is not linked to a governing agreement. This creates costly collection disputes.","Add a clause explicitly stating that the authorization supplements the underlying agreement, and that revocation cancels only the debit mechanism — not the payor's obligation to pay by another method.",[407,410,413,416,419,422,425,428,431],{"question":408,"answer":409},"What is a pre-authorized payment agreement?","A pre-authorized payment agreement is a written authorization signed by a payor that permits a business to withdraw funds from the payor's bank account or charge a payment card on a recurring schedule. It specifies the amount, frequency, account details, and the payor's right to cancel. Without a signed authorization, bank debit networks — including ACH in the US and PAD in Canada — will treat any recurring debit as unauthorized and allow the payor's bank to reverse it.\n",{"question":411,"answer":412},"Is a pre-authorized payment agreement legally required?","Yes, in every major jurisdiction. In the US, NACHA's ACH operating rules require written or electronic authorization before initiating a recurring consumer debit. In Canada, Payments Canada Rule H1 mandates a signed PAD agreement before the first debit. In the UK and EU, Direct Debit and SEPA rules require a signed mandate. Operating recurring debits without a compliant authorization exposes the business to payment reversals, network fines, and potential consumer-protection penalties.\n",{"question":414,"answer":415},"What is the difference between a PAD and an ACH authorization?","A Pre-Authorized Debit (PAD) is the Canadian equivalent of an ACH authorization in the US — both permit a business to pull funds from a customer's bank account on a recurring basis with prior written consent. The key differences are regulatory: Canadian PADs are governed by Payments Canada Rule H1, while US ACH debits are governed by NACHA operating rules and Regulation E. Dispute windows, notice periods, and NSF fee caps differ between the two schemes. Businesses operating in both countries need jurisdiction-specific authorization language.\n",{"question":417,"answer":418},"Can a payor cancel a pre-authorized payment at any time?","Yes. Under NACHA consumer rules and Payments Canada Rule H1, a payor can revoke a pre-authorized payment authorization at any time by providing written notice to the payee, typically 10 business days before the next scheduled debit. Revocation of the authorization does not, however, cancel any underlying debt or contractual payment obligation — the payor remains liable for amounts owed under the governing agreement and must arrange an alternative payment method.\n",{"question":420,"answer":421},"How long must I retain a signed pre-authorized payment agreement?","Retain signed authorizations for a minimum of 3 years after the last transaction under that authorization. NACHA recommends a 2-year minimum for ACH authorizations, but 3 years aligns with the standard audit and chargeback lookback period used by most payment processors and banks. In Canada, Payments Canada recommends retaining PAD agreements for the duration of the authorization plus 7 years.\n",{"question":423,"answer":424},"What happens if a pre-authorized debit is returned NSF?","When a debit is returned for non-sufficient funds, the payor's bank reverses the transaction, and the originating bank charges a return fee to the payee. The payee may also charge the payor a contractual NSF fee if the authorization form includes one, subject to any statutory cap in the payor's jurisdiction. Most payment networks permit up to two retry attempts within 10 business days of the original failed debit. Repeated NSF returns on the same account may result in the payee's bank restricting ACH origination privileges.\n",{"question":426,"answer":427},"Can I use an electronic signature on a pre-authorized payment agreement?","Yes. Electronic signatures are accepted under NACHA rules for ACH authorizations, Payments Canada guidelines for PADs, and eIDAS regulations for SEPA mandates, provided the e-signature platform captures a timestamp, IP address, and audit trail linking the signature to the specific document. The payor must also receive an electronic copy of the signed authorization immediately after execution. Some platforms require additional identity-verification steps for high-value recurring debits.\n",{"question":429,"answer":430},"What is the dispute window for an unauthorized pre-authorized debit?","In the US, Regulation E gives consumers 60 days from the statement date to dispute an unauthorized ACH debit. In Canada, Payments Canada Rule H1 provides a 90-day window to dispute a PAD that was not authorized, and 10 business days to dispute a PAD that does not comply with the authorization terms. In the UK, the Direct Debit Guarantee gives consumers an unlimited right to claim a full refund for any unauthorized or incorrect direct debit charge.\n",{"question":432,"answer":433},"Do I need separate authorizations for each payment amount change?","For fixed-amount authorizations, a change in the debit amount requires either a new authorization form signed by the payor or written pre-notification at least 10 business days before the changed amount is debited — the specific requirement depends on your payment network and jurisdiction. For variable-amount authorizations that include a notification-of-amount clause, advance notice of each specific debit amount satisfies the authorization requirement without requiring a new signed form.\n",[435,439,443,447],{"industry":436,"icon_asset_id":437,"specifics":438},"SaaS and subscription software","industry-saas","Monthly and annual plan billing requires ACH or PAD authorization at sign-up; variable usage-based charges require a notification-of-amount clause covering each billing cycle.",{"industry":440,"icon_asset_id":441,"specifics":442},"Property management","industry-real-estate","Rent collected via automatic bank debit on the first of the month; NSF fee clauses must align with state or provincial landlord-tenant statutes that cap returned-payment fees.",{"industry":444,"icon_asset_id":445,"specifics":446},"Financial services and lending","industry-fintech","Installment loan repayments require a fixed number of authorized debits tied to the amortization schedule, with a clear termination condition when the balance reaches zero.",{"industry":448,"icon_asset_id":449,"specifics":450},"Fitness, wellness, and membership clubs","industry-fitness","Recurring membership dues collected monthly; cancellation-notice requirements must align with state automatic-renewal laws that govern gym memberships specifically in California, New York, and several other states.",[452,455,459,462],{"vs":246,"vs_template_id":453,"summary":454},"credit-card-authorization-form-D13506","A credit card authorization form authorizes charges to a payment card rather than a bank account. Card authorizations are governed by card network rules (Visa, Mastercard) and carry higher processing fees than ACH or PAD debits. Bank account authorizations (ACH/PAD) typically cost $0.25–$0.50 per transaction versus 1.5–3.5% for card charges, making them preferable for high-value or high-volume recurring billing. Use a credit card authorization form when the payor does not have a bank account or when the business requires card-network chargeback protections.",{"vs":456,"vs_template_id":457,"summary":458},"Direct Debit Mandate","D{DIRECT_DEBIT_MANDATE_ID}","A Direct Debit Mandate is the UK and EU equivalent of a pre-authorized debit agreement, used under the Bacs Direct Debit scheme in the UK or SEPA Direct Debit in the EU. The core authorization concepts are identical, but the regulatory framework, mandate format, and dispute rights differ significantly. US and Canadian businesses billing customers in the UK or EU must use jurisdiction-specific mandate forms rather than their domestic ACH or PAD authorization templates.",{"vs":101,"vs_template_id":460,"summary":461},"loan-agreement-D154","A loan agreement governs the full terms of a lending relationship — principal, interest, security, and default remedies. A pre-authorized payment agreement is a narrower instrument that authorizes the mechanical collection of payments defined in the loan agreement. Both documents are typically executed together for consumer or commercial installment loans; the loan agreement creates the obligation, and the PAD or ACH authorization enables automatic collection. Neither document substitutes for the other.",{"vs":118,"vs_template_id":463,"summary":464},"service-agreement-D12711","A service agreement defines the scope of work, deliverables, fees, and contractual obligations between a service provider and client. It creates the payment obligation but does not itself authorize recurring bank debits. A pre-authorized payment agreement supplements a service agreement by providing the compliant written authorization required by payment networks to pull funds automatically. Businesses with retainer or subscription clients need both documents executed before billing begins.",{"use_template":466,"template_plus_review":470,"custom_drafted":474},{"best_for":467,"cost":468,"time":469},"Small businesses and SaaS companies billing domestic customers under standard fixed-amount recurring plans","Free","15–20 minutes",{"best_for":471,"cost":472,"time":473},"Businesses billing across multiple US states or provinces with varying NSF caps, or adding variable-amount clauses","$200–$500","1–3 days",{"best_for":475,"cost":476,"time":477},"Fintech lenders, high-volume payment originators, or businesses collecting recurring debits in multiple countries under different payment network rules","$1,000–$3,500+","1–2 weeks",[479,484,489,494],{"code":480,"name":481,"flag_asset_id":482,"note":483},"us","United States","flag-us","ACH recurring debits are governed by NACHA operating rules and Regulation E (12 CFR Part 205). Written or electronic authorization is mandatory before the first consumer debit. Regulation E gives consumers a 60-day window to dispute unauthorized entries. NSF fee caps vary by state — California caps them at $25 for the first return; other states range from $20–$35. The FTC's Restore Online Shoppers' Confidence Act (ROSCA) imposes additional disclosure requirements for online recurring billing sign-ups.",{"code":485,"name":486,"flag_asset_id":487,"note":488},"ca","Canada","flag-ca","Pre-authorized debits are governed by Payments Canada Rule H1, which mandates a written PAD agreement before the first debit, a 90-day dispute window for unauthorized debits, and immediate delivery of a copy to the payor. Personal PADs (consumer accounts) and business PADs are treated as distinct categories with different notice requirements. Quebec's Consumer Protection Act imposes additional disclosure obligations for consumer recurring billing arrangements. PAD agreements must be in French for Quebec consumers under the Charter of the French Language.",{"code":490,"name":491,"flag_asset_id":492,"note":493},"uk","United Kingdom","flag-uk","UK direct debits are processed under the Bacs Direct Debit scheme and governed by the Direct Debit Guarantee, which gives consumers an unconditional right to a full and immediate refund from their bank for any unauthorized or incorrectly collected charge. Businesses must be approved originators under the Bacs scheme and use the standard mandate format. The Payment Services Regulations 2017 implement the EU PSD2 framework in UK law. Continuous Payment Authorities (CPAs) on debit or credit cards are governed separately under FCA rules.",{"code":495,"name":496,"flag_asset_id":497,"note":498},"eu","European Union","flag-eu","Recurring euro-denominated bank debits across the EU use the SEPA Direct Debit (SDD) scheme, governed by the SEPA Rulebook and implemented nationally under EU Payment Services Directive 2 (PSD2). A signed SEPA mandate is required before the first debit; the creditor must quote the mandate reference on every transaction. Consumers have an 8-week window to dispute authorized debits and an unlimited window for unauthorized ones. GDPR applies to all personal data — including bank account details — collected in the authorization process, requiring a lawful basis for processing and appropriate data retention controls.",[247,500,463,501,502,503,504,505,506,251,507,508],"loan-agreement-D417","secured-installment-note-D440","sales-invoice-D383","promissory-note-D434","direct-deposit-enrollment-form-D672","subscription-agreement-D12537","llc-membership-agreement-D14005","installment-payment-acknowledgment-D216","non-disclosure-agreement-nda-D12692",{"emit_how_to":196,"emit_defined_term":196},{"primary_folder":128,"secondary_folder":511,"document_type":512,"industry":513,"business_stage":514,"tags":515,"confidence":521},"payments-and-treasury","agreement","general","all-stages",[516,517,518,519,520],"pre-authorized-payment","payment-authorization","recurring-billing","banking-agreement","payment-processing",0.95,"\u003Ch2>What is a Pre-Authorized Payment Agreement?\u003C/h2>\n\u003Cp>A \u003Cstrong>Pre-Authorized Payment Agreement\u003C/strong> is a legally binding authorization document in which a payor grants a business the ongoing right to withdraw a fixed or variable amount from a specified bank account on a recurring schedule. It records the payor's informed consent — including the exact amount, payment frequency, bank account details, and cancellation rights — and serves as the mandatory written authorization required by ACH network rules in the United States, Payments Canada Rule H1, the UK Direct Debit scheme, and the EU's SEPA Direct Debit framework before any recurring bank debit can legally be initiated. Without a signed, compliant authorization on file, every scheduled debit is legally unauthorized and reversible by the payor's bank at any time.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Initiating recurring bank debits without a signed pre-authorized payment agreement exposes your business to four immediate risks: the payor's bank can reverse every debit ever processed, your payment processor can suspend your ACH or PAD origination privileges, consumer-protection regulators can fine you for each non-compliant transaction, and the payor can dispute the entire billing history as unauthorized. Beyond compliance, a well-drafted agreement eliminates the most common recurring-billing disputes — failed payments misread as cancellations, NSF fees the payor claims were never disclosed, and payors who argue that revoking the debit authorization cancelled their underlying contract. This template gives you a compliant, court-tested starting point for domestic recurring billing that covers every required disclosure, from dispute rights to cancellation procedure, so your payment operations are protected from the first charge.\u003C/p>\n",1778773564024]