What are Canadian PADs and how do they work?

PAD stands for Pre-Authorized Debit, a Canadian payment method that allows a business to withdraw funds directly from a payer's bank account with their explicit prior consent. PADs are governed by Payments Canada rules and require a signed PAD Agreement before any debit can be initiated — buyers retain the right to revoke authorization at any time by providing 10 business days' notice. This payment method supports only CAD bank accounts.