What Is a Pre-Authorized Debit (PAD)?

Pre-Authorized Debit (PAD) is a secure, automatic way to handle recurring payments.

Unlike other delivery methods such as e-Transfer or Bill Pay, where you initiate the payment, PAD allows your recipient (payee) to automatically withdraw funds directly from your account on the scheduled date.

When you set up PAD payments with Chexy, we create a personalized digital deposit account for you called your Chexy Wallet. This account functions like a regular bank account, complete with unique account details including a transit number, institutional number, and account number.

You can use these details to set up PAD payments with any payee who accepts this delivery method.

Who is the account holder for the Chexy PAD account?

You are the account holder, not Chexy. If asked by your payee, simply enter your legal name.

Is the account a chequing or a savings account?

All Chexy PAD accounts are chequing accounts.

How PAD Works with Chexy

PAD lets your recipient withdraw funds directly from your Chexy account on your payment due date — no manual transfers needed. It's most commonly used for rent payments with large property managers or institutions that already have PAD systems in place.

Step 1: Select PAD as Your Payout Method

When setting up your payment in Chexy, choose Pre-Authorized Debit (PAD) as your delivery method.

Step 2: Get Your Chexy PAD Banking Details

Once PAD is selected, you'll receive unique Chexy PAD banking details to share with your recipient so they can set up the withdrawal on their end.

Step 3: Share Your Details With Your Recipient

There are two ways to set up PAD with your recipient:

Directly with your recipient — Share your Chexy PAD banking details with them. If they require a void cheque, you can download one directly from your Chexy dashboard.
Through a tenant portal (e.g., RentCafe, Yardi, Building Stack) — If your landlord uses an online portal, enter your Chexy banking details there to enable PAD payments.

Step 4: Complete Micro-Deposit Verification (If Required)

Some recipients require a micro-deposit verification before activating PAD. If your recipient initiates one, Chexy will email you the deposit amount once received so you can complete the verification process. See the Verification Deposits section below for full details.

Step 5: Chexy Charges Your Credit Card

Recurring PAD payments: Your credit card is charged 4 business days before your payment due date to ensure funds are settled in your Chexy account in time.
One-time PAD payments: Your card is charged immediately.

Step 5b: Rush Payment

Need your payment processed sooner? For an additional fee of 0.3%, you can enable Rush Payment — your payment will be submitted the next business day instead of the standard 4 days prior.

The cutoff time to qualify for PAD Rush (next-day submission) is 9:00 PM ET. No rush is possible after this time for any payment method.

Step 6: Your Recipient Withdraws the Funds

On your payment due date, your recipient submits a withdrawal request from your Chexy account.

Payment due on a weekend or holiday? PAD withdrawals are only processed on business days. If your due date falls on a Saturday, Sunday, or holiday, the withdrawal will occur on the next business day. This is standard PAD processing — your recipient should already be aware of this.

Important Things to Know

Confirm your recipient accepts PAD — Not all recipients support this method. Check with them before setting it up.
Chexy does not initiate the withdrawal — Your recipient is responsible for pulling the funds. We have no visibility into whether they've set things up correctly, so always confirm with them before your first payment.
Void cheque available — If your recipient needs one to verify your account details, download it directly from your Chexy dashboard.

How to Find Your PAD Details

If you need to access your PAD details on Chexy, follow these steps:

Log in to your Chexy dashboard.
Select the payment.
Click on the "PAD Details" option.

Here, you can:

View your PAD information (transit number, institutional number, account number)
Download your Void Cheque

Note: You will also see these PAD details during the onboarding process, at the time of setting up the PAD recurring payment.

Verification Deposits (Micro-Deposits)

Chexy fully supports verification deposits, which are small deposits (usually under a dollar) that payees sometimes use to confirm account details before initiating the first PAD withdrawal.

To verify with a micro-deposit, follow these steps:

Share Chexy Wallet Details: Provide your payee with your Chexy Wallet's unique transit, institutional, and account numbers. They'll make a small deposit and ask you to confirm the amount.
Wait for the Micro-Deposit: It may take 1-2 business days for the micro-deposit to appear in your Chexy Wallet after it's sent. Once it arrives, we'll notify you by email with the subject line "Microdeposit available" with the exact amount.
Verify the Amount: Enter the exact amount in the verification field your payee provides.
Activate Payments: Once verified, activate payments on Chexy to start making PAD payments.

Tesla exception: Tesla will send $0.50 and no action is required after it arrives.

Switching to Chexy PAD from an Existing PAD

If you previously had a PAD set up directly through your chequing account, you must cancel that arrangement. Chexy does not automatically cancel existing PAD setups.

If you do not cancel the original PAD:

You may be charged twice — once through Chexy and once through your bank account.

What You Should Do

Cancel your existing PAD with the payee or through your bank.
Ensure your payee has your Chexy void cheque details.
Confirm they will now pull from Chexy instead of your bank account.

Chexy does not communicate with your payee directly. You are responsible for coordinating the banking update with them.

About Payee Contact Details During Onboarding

When setting up a PAD or recurring payment, Chexy asks for basic payee details (email, phone number, address) as part of onboarding. This information is collected for compliance and security purposes only. Chexy will not contact your payee and will not use this information to process your payment.

What if I don't have the payee's contact information?

That's completely normal — especially with larger companies. Here are ways to find what you need: