Pre-authorized debit

**Pre-authorized Debit**

A pre-authorized debit (PAD) is an automated payment method that allows businesses or organizations to withdraw funds directly from a customer’s bank account on a predetermined schedule. Commonly used for recurring payments like utility bills, loan repayments, or subscription services, PADs provide a convenient and reliable way to ensure timely transactions without the need for manual intervention. This payment option helps to streamline cash flow management for both payers and payees, reducing the risk of missed or late payments.