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Auto Payment Contract for Canada

Auto Payment Contract Template for Canada

This document is a comprehensive Auto Payment Contract designed for use in Canada, complying with federal and provincial regulations including the Canadian Payments Act and relevant consumer protection legislation. It establishes the terms and conditions for recurring automated payments between a service provider and customer, covering payment authorization, processing procedures, security measures, and dispute resolution mechanisms. The contract includes necessary provisions for personal information protection under PIPEDA and incorporates requirements from the Canadian Payments Association Rule H1 regarding pre-authorized debits.

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What is a Auto Payment Contract?

The Auto Payment Contract serves as a legally binding agreement between payment service providers and customers in Canada, establishing the framework for automated recurring payments. This document is essential when setting up pre-authorized debits or recurring payment arrangements, whether for regular bill payments, subscription services, or other periodic financial commitments. It ensures compliance with Canadian federal regulations including the Canadian Payments Act, PIPEDA, and provincial consumer protection laws, while providing clear terms for payment authorization, processing, and dispute resolution. The contract is designed to protect both service providers and customers by clearly defining rights, responsibilities, and procedures for automated payment arrangements.

What sections should be included in a Auto Payment Contract?

1. Parties: Identification of the payment processor/service provider and the customer, including full legal names and contact details

2. Background: Context of the agreement and the services being provided

3. Definitions: Key terms used throughout the agreement, including technical payment terms

4. Payment Authorization: Details of the customer's authorization for automatic payments, including account information and consent

5. Payment Terms: Specifics about payment amounts, frequency, processing dates, and any variable payment conditions

6. Service Provider Obligations: Responsibilities of the payment processor, including processing commitments and security measures

7. Customer Obligations: Customer responsibilities, including maintaining sufficient funds and providing accurate information

8. Modification and Cancellation: Procedures for changing or terminating the automatic payment arrangement

9. Privacy and Data Protection: Handling of personal and financial information in compliance with PIPEDA

10. Security Measures: Security protocols for protecting payment and personal information

11. Errors and Disputes: Procedures for handling payment errors, disputes, and unauthorized transactions

12. Term and Termination: Duration of the agreement and conditions for termination

13. Governing Law: Specification of Canadian law application and jurisdiction

What sections are optional to include in a Auto Payment Contract?

1. Multiple Account Management: Used when customer has multiple payment sources or destinations

2. International Payments: Include when cross-border payments are involved

3. Variable Payment Authorization: For arrangements where payment amounts may vary

4. Business Account Provisions: Special terms for business rather than consumer accounts

5. Digital Wallet Integration: Terms for integration with digital payment systems

6. Rewards Program: If the payment service includes a rewards or cashback program

7. Third-Party Service Providers: When additional service providers are involved in processing

What schedules should be included in a Auto Payment Contract?

1. Schedule A - Fee Schedule: Detailed breakdown of all applicable fees and charges

2. Schedule B - Payment Authorization Form: Standard form for payment authorization details and customer signature

3. Schedule C - Processing Timeline: Detailed schedule of payment processing times and cut-off times

4. Schedule D - Security Protocols: Detailed security measures and compliance requirements

5. Appendix 1 - Customer Information Form: Form for collecting customer and account information

6. Appendix 2 - Cancellation Form: Standard form for cancellation of auto-payment services

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Ƶ

Document Type

Payment Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions





































Clauses
































Relevant Industries

Financial Services

Banking

Retail

Technology

Insurance

Telecommunications

Utilities

Subscription Services

E-commerce

Professional Services

Healthcare

Education

Relevant Teams

Legal

Compliance

Finance

Operations

Customer Service

Risk Management

Treasury

Technology

Business Development

Account Management

Payment Processing

Contract Administration

Relevant Roles

Payment Operations Manager

Compliance Officer

Legal Counsel

Financial Services Manager

Account Manager

Banking Operations Director

Risk Management Officer

Customer Service Manager

Treasury Manager

Payments Technology Officer

Contract Administrator

Financial Controller

Business Development Manager

Operations Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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