Pre-Authorized Debit Agreement: Fill & Download for Free

From the question, I think you have asked about pre-authorised payments. It must be sent at least 3 days before the first withdrawal from your account and include the details of the agreement. You must provide your banking information as part of the pre-authorized debit agreement. Your financial institution may ask you to provide a blank cheque. This is to confirm your account details.For any payment to a credit card company from your bank checking account, it can take up to five days for the funds to be withdrawn. In some cases, there might be a hold on the full amount by displaying a smaller amount in its place.

A direct debit or direct withdrawal is a financial transaction in which one person withdraws funds from another person's bank account. Formally, the person who directly draws the funds ("the payee") instructs his or her bank to collect (i.e., debit) an amount directly from another's ("the payer's") bank account designated by the payer and pay those funds into a bank account designated by the payee. Before the payer's banker will allow the transaction to take place, the payer must have advised the bank that he or she has authorized the payee to directly draw the funds. It is also called pre-authorized debit (PAD) or pre-authorized payment (PAP). After the authorities are set up, the direct debit transactions are usually processed electronically. Direct debits are typically used for recurring payments, such as credit card and utility bills, where the payment amounts vary from one payment to another. However, when the authorisation is in place, the circumstances in which the funds are drawn as well as the dates and amounts are a matter of agreement between the payee and payer, with which the bankers are not concerned. In countries where setting up authorization is easy enough, direct debits can also be used for irregular payments, such as for mail order transactions or at a point of sale.

What is a payday loanA payday loan is a short-term loan with high fees that make it a very expensive way to borrow money. You can borrow up to $1,500.You must pay the loan back from your next paycheque. If you can’t pay it back on time, you'll face more fees and interest charges. This will increase your debt.Payday loans are meant to cover a cash shortfall until your next pay. Avoid using them for ongoing costs such as rent, groceries or utility bills. If you use them in this way, you may end up in financial trouble.Privately-owned companies offer payday loans in stores and online.What to expect when you take out a payday loanHere’s what you can expect if you’re considering taking out a payday loan.What you need to provide a payday lenderGenerally, payday lenders will require proof that you have:a regular incomea bank accounta permanent addressBefore giving you a payday loan, payday lenders will require you to do one of the following:fill out a form that will allow the lender to withdraw the total loan amount, including fees, directly from your bank account when the loan is due (also called a pre-authorized debit)provide a post-dated cheque for the total loan amount including feesGetting money from a payday lenderIn most cases, the payday lender will deposit money in your bank account or give you cash.However, in some cases, the payday lender may ask you to take the loan on a prepaid card. It may cost extra to activate and use the card.Paying back a payday loanSome payday lenders require you to repay your loan at the same location where you got your loan.Make sure you understand the agreementThe payday lender will ask you to sign an agreement that shows your loan costs, including interest, fees and the due date. Read this document carefully before signing it. Ask the payday lender about anything you don’t understand.Find out your province or territory’s payday lending rules by contacting your provincial or territorial consumer protection office.How much payday loans costPayday loans are very expensive compared to other ways of borrowing money. This is because:you pay high feesyou're charged a higher interest rate than on a regular loan or line of credityou may have to pay a fee if your cheque or pre-authorized debit doesn't go throughThese high costs can make your loan harder to pay back, which can increase your financial difficulties and stress.Before taking out a payday loan, be very sure that you can pay it back within two weeks. If not, your financial situation may get worse. Your debt can keep growing and you can end up paying a lot of money over time.Figure 1: Comparing the cost of a payday loan with a line of credit, overdraft protection on a chequing account and a cash advance on a credit card (Based on a $300 loan for 14 days)for further, please read below,Payday loans - Canada.ca