Set up PAD agreements to let your cardholders securely fund investments using linked bank accounts through the addy EFT system.
Overview
As a card issuer using addy’s wallet infrastructure, you’ll need to collect a Pre-Authorized Debit (PAD) Agreement from each cardholder who wants to link their bank account and use your card to invest.
The PAD agreement is a compliance requirement that gives you permission to withdraw funds via EFT when the card is used for investment transactions on the addy platform.
How It Works
1. Member Links a Bank Account to Their Card
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When a member links a bank account through your card setup flow, they’ll be asked to authorize a PAD agreement.
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This process is integrated with addy’s wallet onboarding, and typically uses a trusted service like Plaid to verify the account.
2. PAD Agreement Is Presented and Signed
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addy will facilitate the digital consent workflow (checkbox + e-signature).
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A record of the agreement and timestamp will be stored in the member’s wallet profile for audit purposes.
3. EFT File Generation and Processing
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Once the PAD is in place, and the member uses their card to make a debit or credit, addy will:
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Generate an EFT record for the transaction
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Include it in a batch file routed to your designated payment processor or EFT gateway
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You are responsible for submitting this EFT file and settling the funds.
Cancellation & Revocation
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Members can revoke PAD authorization at any time by:
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Unlinking their bank account via their addy wallet
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Contacting you directly to cancel the agreement
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If a PAD is revoked, you will no longer be authorized to initiate debit or credit transactions for that member.
Compliance & Responsibilities
As the card issuer, you are responsible for:
✅ Having a compliant PAD agreement that aligns with Canadian payment regulations
✅ Storing a copy of the PAD in compliance with addy's stated PII Policy.
✅ Managing disputes, failed payments, and revocations with your payment processor
✅ Ensuring EFT files are submitted in accordance with your banking partner’s rules
addy will facilitate the front-end flow and store the member PAD agreement for retrieval.
Summary
The PAD agreement is a foundational part of enabling debit and credit transactions through your card within the addy wallet system. By collecting and storing proper PAD authorization from each member, you’ll be able to securely debit their linked bank account via EFT when they use your card to invest in participating offerings on addy.