Here's how pre-authorized payments work
It's a modern, easy method to make those recurring bill payments
without the inconvenience of cheque writing and the increasing
cost of postage or that trip to pay your bills.
With your permission, your payments can be made automatically
through your bank or financial institution chequing account.
The pre-authorized payment method eliminates the need for
you to write cheques each month for your regular bill payments.
One authorization is all that is required for a series of
payments to be made automatically through your bank or financial
institution chequing account. This means reduced postage and
With pre-authorized payments there are no cheques to get lost
or stolen - you avoid the embarrassment of missed payments,
and the penalty charge for late payments as a result. You may
stop payment at any time if you feel the necessity to do so.
If you are away on vacation, out of town on business or sick,
your payments will be made on time. Even postal or airline
disruptions, in most cases, will not prevent your bill payments
from reaching their destination on time.
The Company answers some of the questions, you may ask!
1. Depending on whether the company has fixed or flexible
payment dates, you can arrange your payments to fit your budget
or payday cycles.
2. Should an incorrect amount be processed against your account,
it will be corrected when you have advised the company.
3. If a payment processed against your account is not in accordance
with the authorization, because you cancelled the authorization
in writing to the Company, because an authorization was not
provided to the Company for the payment processed, or because
the payment was posted to the wrong account or for the wrong
amount, or there was some other error, then you can ask your
bank (by writing to the Manager of the branch where your account
was debited) any time up to 90 days after your account is debited
for the payment, to return the payment to you. After the 90
days, the Bank is not responsible to return the payment, and
you must deal directly with the Company for reimbursement.
4. Should you move your account from one bank or branch to
another, advise the Company of the change and they will arrange
a new agreement with you so payments can continue uninterrupted.
5. You continue to have control just as with cheques you have
written. You can instruct the branch to stop payment before
it goes through your account and you can discontinue payments
altogether, if desired, by advising the Company in writing.
What about your records?
Your payments are recorded automatically and individually
on your monthly bank statement or passbook. You can also continue
to enter your pre-authorized payments in your personal cheque
record book as if you had written and mailed a cheque.
What about our records?
Here's where we need your help.
Please complete the information required on the enclosed authorization
form and also include
one of your personal cheques marked "VOID" and return
them to us. Please take 30 seconds and do it right now. From
then on it's good-bye to writing cheques.