Sporadic PADs in Canada
A sporadic pre-authorized debit needs the customer's approval before each debit goes, and the customer cannot give that up in advance.
Updated November 3, 2026
What EFT Rails does
EFT Rails sends a pre-authorized debit (PAD) when you create it, so a sporadic debit is a payment you create after your customer authorizes it. You hold the PAD agreement with your customer. The API reference describes how to create payments.
Decide how the debits are timed
The timing in your PAD agreement determines what your customer must receive before a debit. A PAD can have a fixed or variable amount, and it can happen once or recur at set intervals or sporadically.1 The agreement must state whether its timing is set intervals, one-time or sporadic.2
Sporadic timing covers occasional, irregular, intermittent or infrequent debits. It applies when the debits have neither set-interval nor one-time timing.3
Set intervals cover specified or predictable periods and times. They also cover debits triggered by criteria or events set out in the agreement, which must describe the triggering act, event or criteria unambiguously.4
One-time timing covers one debit on a set date. That agreement supports only that debit, so any later debit requires a new agreement.5
| Timing | What it means | What the business must give the customer |
|---|---|---|
| Set intervals | Debits follow predictable dates or a trigger described in the agreement. | Written pre-notification of the amount and date of the next debit at least 10 calendar days before any change to a fixed amount or the payment dates, and before every variable-amount debit after the first.6 |
| One-time | One debit occurs on a set date. | A new PAD agreement for any later debit.5 |
| Sporadic | Debits occur occasionally or irregularly as needed. | An authorization before each debit is sent.7 |
| All three | Confirmation of the agreement applies whatever the timing. | A confirmation at least 10 calendar days before the first debit, unless the customer waives it or shortens the period. If waived, provide it within 5 calendar days after the first debit.8 |
When a trigger is a set interval
A debit tied to an event named in the PAD agreement follows set-interval timing. A debit after each completed job is set-interval when the agreement identifies that event and describes it unambiguously.4 Where the agreement names no triggering event, debits you make as needed are sporadic.
Write it into the agreement
An agreement that permits sporadic debits must state that you will obtain the customer's authorization for each one.9
The confirmation requirement applies to personal and business PAD agreements, including sporadic agreements. Provide or make the confirmation available at least 10 calendar days before the first debit's due date, unless the customer waives it or shortens that period. A waived confirmation is due within 5 calendar days after the first debit.8 The PAD agreement guide covers the agreement's contents.
Get approval before each debit
A sporadic debit can go only after the customer approves that specific debit. You must obtain the authorization before the debit is sent, and the customer cannot waive this requirement.7
An authorization is the consent of the customer, called the payor, after their identity has been verified by commercially reasonable methods. Those methods take account of the kind of business, the transaction amount, your payment volume and whether you already have a business relationship with the customer.10
An authorization can be in writing, which includes an electronic document the customer keeps and can read again, or recorded in another form that can be retrieved and read or heard later.11
For each sporadic debit, keep the customer's approval of that debit, its amount and date, and how you checked their identity.
The Virtual Terminal in the dashboard takes one debit by hand, such as a debit a customer authorizes on the phone, and emails the customer a receipt once it is sent.
When you send notices instead
Sporadic collections use per-debit authorization, while set-interval collections use advance notices. The pre-notification rules apply to personal and business debits recurring at set intervals and require written notice of the amount and date of the next debit at least 10 calendar days before any change to a fixed amount or the payment dates, and before every variable-amount debit after the first.6 The pre-notification guide explains that process.
The confirmation before the first debit applies to sporadic agreements too.8
Keep the record
Keep an audit trail, including the PAD agreement and evidence of authorization, for at least 12 months after the last debit. When the customer's bank requests a copy on reasonable grounds, your bank must make every reasonable effort to provide it.12
A customer can claim back a debit that did not follow the PAD agreement. The window runs up to and including 90 calendar days after a personal debit and 10 business days after a business debit.13 The dispute windows guide sets out those deadlines.
A returned payment shows as returned in EFT Rails.
Sources (13)
- Rule H1, section 2 ↩
- Rule H1, section 15(a)(ii) ↩
- Rule H1, section 5(v) ↩
- Rule H1, section 5(t); Rule H1, Appendix II, "Amount, Timing or Specified Event/Action" ↩
- Rule H1, section 5(i); Rule H1, section 15(a)(iv) ↩
- Rule H1, section 5(p); Rule H1, section 17 ↩
- Rule H1, section 15(a)(iii) ↩
- Rule H1, section 16 ↩
- Rule H1, Appendix II, "Sporadic PADs" ↩
- Rule H1, section 5(a); Rule H1, section 5(e) ↩
- Rule H1, section 5(w); Rule H1, section 5(r) ↩
- Rule H1, sections 13 and 21 ↩
- Rule H1, section 24 ↩
Questions
What is a sporadic PAD?
A sporadic PAD occurs occasionally, irregularly, intermittently or infrequently. Its timing is neither set intervals nor one-time.1
Do I need the customer's approval for every sporadic debit?
Yes. The customer's authorization for each sporadic debit must come before the debit is sent, and the customer cannot waive that requirement.2
Does pre-notification apply to sporadic PADs?
The pre-notification rules are written for debits recurring at set intervals, where notice of the amount and date of the next debit comes at least 10 calendar days before any change to a fixed amount or the payment dates and before every variable-amount debit after the first.3 A sporadic debit needs the customer's authorization before each debit instead.2 The confirmation still applies to a sporadic agreement, and the customer may waive it or shorten its 10-calendar-day period.4
Can a one-time PAD agreement be used again?
No. A one-time agreement covers one debit on a set date, and any subsequent debit requires a new PAD agreement.5
Is a debit triggered by an event sporadic?
It is set-interval when the PAD agreement names the triggering act, event or criteria and describes it unambiguously.6 Debits made as needed are sporadic when the agreement names no triggering event.