Have you ever seen a so-called “solution” that solves one problem while it creates another? This situation is all too familiar for Canadian suppliers navigating Pre-Authorized Debit (PAD) compliance in Canada. But fear not! Billtrust steps in to help.
Every CFO wants more recurring revenue, so their cash flow is predictable. But payments in the Canadian business-to-business (B2B) market can be a help as much as a hinderance for accounts receivable (AR) teams. Customers expect frictionless remittance experiences through automated payment services, but these can come with compliance requirements that only complicate matters for suppliers on the receiving end.
For instance, PAD has long been a reliable method for facilitating recurring payments. For AR teams, however, PAD processes are typically dominated by manual steps and paperwork, which can cause cash flow delays. Although PAD was intended to streamline payments, it can actually undermine AR efficiency instead.
That’s why Billtrust tackles this problem.
As a leader in automated payment services, Billtrust offers Canadian suppliers a fully embedded PAD workflow built for compliance, speed, and customer convenience. Let’s explore this solution, why it matters, and how automation can transform payment processing.
Canadians initiated approximately $1.28 billion PAD debit transactions in 2024, amounting to a total value of $1.47 trillion.
Why Billtrust for PAD Process Automation? Compliant Workflows are Built In
Not all automated payment services are created equal, particularly when it comes to PAD process automation solutions. Many require additional offline steps and separate onboarding processes due to the use of disparate tools, but these disjointed systems create unnecessary friction for both suppliers and buyers.
Billtrust takes a different approach: Buyers enjoy a unified payment experience thanks to a simple checkout workflow. Meanwhile, AR leaders leverage automation to reduce the amount of time required to manage PAD agreements while simultaneously lowering legal risk.
What Billtrust’s Automated PAD Workflow Does
When PAD creation and authorization procedures become built-in steps in the broader payment management process, automation becomes a strategic advantage. Here’s a closer look at what Billtrust’s solution can do.
- Customers complete PAD agreements and authorizations online, where digital processes are fast, secure, and paper-free.
- Rule H1 compliant notifications are sent automatically.
- Transactions and exceptions are tracked through a dashboard, offering real-time visibility.
The end result? A smoother experience for you and your customers with fewer payment delays, fewer errors, and fewer headaches.
How Billtrust Makes PAD Management Seamless
The goal is to make PAD automation seamless — not another IT project — and it’s here where Billtrust stands apart. Billtrust solutions integrate with your existing AR platforms, including your ERP system, banks and financial institutions, as well as your client’s AP portals. Learn how Billtrust works with your existing ERP system. Pad creation
Plus, automated PAD workflows are just one component of Billtrust’s comprehensive automation platform, which covers the entire AR lifecycle from invoicing, payments, and digital lockbox to cash application and collections. This way, you can drive wider operational efficiency, accelerating cash flow by improving performance across all AR functions.
Five Reasons You’ll Love PAD Workflows from Billtrust
- Efficiency: No paperwork, no manual notifications
- Accuracy: Built-in validations reduce errors and disputes
- Simplified compliance: Fully aligned with Payments Canada rules
- Seamless integration: Direct bank connectivity, no third-party tools
- Flexibility: Accept EFT and card payments in Canadian or US dollars—all in one workflow
Why it Matters: PAD Helps Buyers, but Hinders Suppliers
PAD is widely adopted in Canada for good reason: it’s secure, predictable, and ensures compliant payments. Buyers authorize suppliers to debit their accounts for recurring or one-time invoices. It reduces the risk of declines or unauthorized chargebacks.
But compliance with Payments Canada Rule H1 introduces complexity. Suppliers must:
- Obtain proper authorization
- Send notifications of the PAD completion
- Maintain detailed audit trails
For your AR team this could mean:
- Manual setup is slow and error-prone: Paper forms and manual data entry lead to inefficiencies and mistakes.
- Fragmented workflows: Invoicing, authorization, and payment often live in separate systems, slowing down cash flow.
- Compliance is burdensome: Rule H1 demands detailed agreements, advance notifications, and audit trials, which can delay onboarding and complicate compliance.
When you’re handling hundreds or thousands of customers, these challenges can quickly become operational bottlenecks. By digitizing PAD workflows, AR leaders can reduce administrative overhead, improve accuracy, and deliver a seamless experience for your customers, while staying compliant with Payments Canada regulations.
Ready to Simplify PAD? See Solutions in Action
PADs are essential for doing business in Canada. If you’re looking to streamline Canadian payments and reduce compliance risk, take a look at Billtrust. Talk to one of our PAD experts, who will give you a personalized demonstration. Schedule a demo today.
