How do I activate Pre-Authorized Debit on my invoices? (CAD)

PAD Payments, also known as Pre-Authorized Debits (PAD), is available through Stripe Standard and FreshBooks Payments powered by Stripe, and allows businesses to debit clients through bank-to-bank transfers in CAD currency.

• Details
• Activate PAD Payments on Invoices

Details

• Availability - For businesses based in Canada that already have Stripe set up, and with clients located in Canada using a Canadian bank account
• Transaction Fee - 1% + $0.40 per transaction with caps available for Select plans
• Processing / Payout Schedule - Payments are processed and settled depending on whether it’s your first payout or not, and your business’ location
• Chargebacks - Review Stripe’s disputes and fraud process

Activate PAD Payments on Invoices

PAD Payments can be activated on any invoice or recurring template where the currency is in CAD ($) with the below steps:

1. If you have not yet set up Stripe, complete the steps to accept online payments with Stripe first
2. When creating an invoice or recurring template, under Settings, select Accept Online Payments
   
3. Under FreshBooks Payments or Stripe Standard, check off the box next to Accept Pre-Authorized Debit
   
4. Next, select either Business Debit or Personal Debit
5. Select Done to finish and resume creating your invoice or recurring template as needed.

PAD Payment Notes:

• PAD Payment Accounts - there are two types of PAD Payment accounts, depending on who your clients are:
  • Business Debit - Collect payment from a business customer for goods or services related to a commercial activity (e.g., payment to suppliers of distributors)
  • Personal Debit - Collect payment from an individual not related to a business for goods or services not related to a commercial activity (e.g., membership fees)
• Client Experience - To view what the experience looks like for your clients when paying with Pre-Authorized Debit, review As a client, how do I pay an invoice with online payments?