What is a PAD?
The PAD is signed during client onboarding and grants authorization for automatic withdrawals from a business account.
The PAD appears as a pop-up during setup
It is acknowledged by checking a box within the component
Once signed, the agreement is locked and cannot be edited
If a change occurs, a new PAD may be required to maintain compliance.
When a new PAD agreement is needed
A new PAD agreement must be completed in the following situations:
Scenario | Why it’s required |
Bank account change | A new PAD ensures authorization aligns with the updated account to avoid processing errors |
New signing officer | PAD agreements are legally tied to the individual who authorizes the withdrawal; a change requires reauthorization |
To initiate a new PAD, contact Support for a manual agreement process.
Disclaimer: This article is not intended to provide tax, legal, benefits, financial, or HR advice. Since laws and regulations are subject to change and may differ by location, please consult a legal or HR professional for personalized guidance.