1. Parties
Payee: Chexy Inc. 340 King Street E, 400S Toronto, ON M5A 1L3, Canada Email: support@chexy.co Website: www.chexy.co
Sponsor Financial Institution: People's Trust Company (PTC)
Payor (You / Your Business): As identified by the information you provide when accepting this agreement on behalf of your business.
2. Authorization
By accepting this agreement, I (the "Payor"), on behalf of the business identified below, authorize Chexy Inc. (the "Payee") to debit the business bank account at the financial institution identified below for payments processed through the Chexy platform.
I confirm that:
(a) I am an authorized signatory or representative of the business, with the authority to bind the business and to authorize debits from the account specified below.
(b) The account specified is a business account used for commercial purposes.
(c) I have read, understood, and agree to the terms and conditions of this Pre-Authorized Debit Agreement on behalf of the business.
(d) The banking information I have provided is accurate and complete.
3. Business and Bank Account Information
Business Legal Name: [as provided by Payor]
Business Number (BN): [as provided by Payor, if applicable]
Financial Institution Name: [as provided by Payor]
Branch/Transit Number: [as provided by Payor]
Institution Number: [as provided by Payor]
Account Number: [as provided by Payor]
4. Payment Amount
Debits under this agreement may be for fixed or variable amounts, depending on the invoice, bill, or payment request associated with each debit.
For one-time payments: The amount will be clearly displayed to you and confirmed by you at the time of authorization.
For recurring payments: The amount may be fixed (as specified when you set up the recurring payment) or variable (as determined by each billing cycle or invoice). For variable recurring amounts, Chexy will notify you of the upcoming debit amount as soon as it is determined, and you agree to waive the standard 10-calendar-day pre-notification period as described in Section 6.
5. Payment Timing and Frequency
When you set up a payment on the Chexy platform, you select whether the debit will be one-time or recurring:
(a) One-time PADs. A single debit processed for a specific invoice or payment request. You authorize the amount and date at the time of setup. This agreement automatically terminates with respect to that payment upon successful processing of the debit. Any subsequent payment will require a new authorization.
(b) Recurring PADs. Debits processed at the frequency you select when setting up the payment (e.g., weekly, bi-weekly, monthly, quarterly, or another interval offered on the platform). Recurring debits will continue at the selected frequency until you cancel this agreement or modify the payment arrangement through the Chexy platform. By opting into recurring debits, you authorize Chexy to initiate each subsequent debit at the agreed frequency without requiring your individual approval for each transaction.
6. Confirmation and Pre-Notification
Waiver of 10-day confirmation period. You and Chexy agree to waive the standard 10-calendar-day confirmation period prior to the first PAD, as you are actively initiating and authorizing the payment at the time of setup.
Pre-notification of amount changes. For recurring payments with variable amounts, you agree to waive the standard 10-calendar-day pre-notification period. Instead, Chexy will notify you of the upcoming debit amount as soon as it is determined, and you may view upcoming debit amounts in your Chexy account at any time.
Chexy will provide you with a confirmation of each debit within 5 calendar days following each PAD, which will include the amount debited, the date of the debit, and a reference to the associated invoice or payment.
7. Funds Flow
Funds debited from your business bank account will be deposited into the For Benefit Of (FBO) account maintained by Chexy at People's Trust Company and credited to the designated recipient's account within the Chexy platform, in accordance with the invoice or payment request you authorized.
8. Recourse Rights
You have certain recourse rights if any debit does not comply with this agreement. For example, you have the right to receive reimbursement for any debit that is not authorized or is not consistent with this PAD Agreement. To obtain more information on your recourse rights, contact your financial institution or visit www.payments.ca.
For Business PADs, you have 10 business days from the date your account was debited to contact your financial institution and submit a claim for reimbursement if:
(a) You did not receive a confirmation, pre-notification, or notice as required by Payments Canada Rule H1;
(b) You cancelled this PAD Agreement by following the cancellation procedures detailed below and a debit was nonetheless processed; or
(c) A debit was not drawn in accordance with this agreement as you authorized.
If no PAD agreement exists and a debit is processed to your account, you have 90 calendar days from the date your account was debited to contact your financial institution to make a claim for reimbursement, regardless of PAD category.
9. Insufficient Funds
If a PAD is returned due to insufficient funds in your account, Chexy may re-attempt the same debit once, within 30 calendar days of the original transaction date, for the exact same amount. No additional fees will be included in the re-attempted debit under this agreement. Chexy may, however, charge a separate returned payment fee in accordance with Chexy's Terms of Service.
10. Cancellation
You may cancel this PAD Agreement or any individual recurring payment at any time by:
(a) Cancelling or modifying the recurring payment through your Chexy account settings;
(b) Contacting Chexy at support@chexy.co; or
(c) Providing written notice to Chexy at the address listed in Section 1.
Cancelling an individual recurring payment stops future debits for that specific payment only. Your PAD Agreement and any other active recurring payments remain in effect.
Cancelling this PAD Agreement in its entirety revokes authorization for all debits under this agreement. Upon receipt of your cancellation notice, Chexy will cancel this agreement within 30 calendar days. No further debits will be initiated after the effective cancellation date.
Important: Cancelling a recurring payment or this PAD Agreement cancels only the authorization to debit your business bank account. It does not cancel any outstanding payment obligations, invoices, or your Chexy account. You will need to arrange an alternative payment method for any amounts owing.
11. Changes to This Agreement
Chexy will provide you with at least 10 calendar days' written notice before making any material changes to the terms of this agreement. For recurring payments, changes to the debit amount or schedule will be communicated in accordance with the pre-notification provisions in Section 6.
12. Payment Service Provider Disclosure
Chexy Inc. processes PADs through its sponsor financial institution, People's Trust Company. Chexy is a registered Money Services Business (MSB) with FINTRAC and acts as the payment service provider facilitating the transfer of funds between your business and the invoice issuer (biller) on the Chexy platform.
13. Privacy and Security
Your business banking information is collected, stored, and processed in accordance with Chexy's Privacy Policy (available at www.chexy.co/privacy) and applicable Canadian privacy legislation. Bank account details are encrypted and handled in accordance with industry security standards.
14. Contact Information
For questions, concerns, or to cancel this agreement:
Chexy Inc. Email: support@chexy.co Website: www.chexy.co 340 King Street E, 400S, Toronto, ON M5A 1L3, Canada
For questions about your recourse rights, contact your financial institution or visit www.payments.ca.
15. Acknowledgment and Consent
By activating a payment or subscription on the Chexy platform using EFT debit, you acknowledge and confirm that:
You have read and understood this Business PAD Agreement.
You are authorized to bind the business and to authorize debits from the specified business bank account.
You authorize Chexy Inc. to debit the business bank account as described in this agreement.
If you select recurring payments, debits will continue at the frequency you choose until you cancel or modify the arrangement.
You understand the recourse rights as described in Section 8, including the 10-business-day claim period applicable to Business PADs.
You understand how to cancel this agreement as described in Section 10.
You consent to the waiver of the 10-calendar-day confirmation period as described in Section 6.
This agreement is governed by Payments Canada Rule H1 and the laws of the Province of Ontario and the federal laws of Canada applicable therein.
Last updated: March 19, 2026