Frequently asked questions

Rotessa is online software that makes it easy to withdraw payments from your customers’ bank accounts.

No. Creating and maintaining a Rotessa account is 100% free (for real). You only pay for the number of transactions you process each month and the number of returned transactions. If you don’t process any transactions, you won’t get charged.

At the end of each month, we’ll calculate your total usage and send you a summary of your fees. Rotessa fees are directly withdrawn from your bank account on or after the 5th of the month.

Yes we do. If you process over 1,000 transactions a month please contact Rotessa directly to discuss custom discounted pricing. We can be reached at [email protected].

Yes! We are a proud Better Business Bureau (BBB) member with an outstanding A+ rating. Since 2010, we have successfully processed over $1.7 billion in transactions and earned a remarkable 4.95/5 rating from genuine reviews by small business owners. We use the latest SSL online security and encryption technology, meeting the same requirements as major banks. Additionally, we have dedicated staff members with ACAMS AML (Anti-money laundering) certification, a credential that signifies a commitment to maintaining the highest standards in the financial industry.

Setting up your Rotessa account only takes a few minutes. We’ll ask for information about you and your business, so we can verify your identity. Once we have your information, your account will be ready to go in 2-4 business days!

Yes! Rotessa works well with QuickBooks Online and Xero. Our integration easily allows you to import your invoices from your accounting software and get automatically paid from your customers’ bank accounts.

Yes, our team is located in Steinbach, Manitoba and we’re proud to provide a payment solution for over 3000 businesses across Canada and the US.

Since launching in 2010, we have processed over five million transactions worth over $1.8 billion.

Pre-authorized debit (or PAD for short) is an electronic payment in which money is withdrawn from a customer’s bank account and deposited into a business’ bank account.

Pre-authorized debit works best for businesses that collect multiple payments from a single customer. This can include businesses that collect payments set to a scheduled amount and timing or varying amounts and timing.

• Landlords for rent
• Mortgage lenders for mortgage payments
• Colleges and universities for tuition
• Insurance companies for premiums
• Fitness centres for membership fees
• Daycares for monthly dues
• Clubs and leagues for membership fees
• Loan agencies and lenders for loan payments
• Professional services on retainer (ex. legal, marketing, advisory)

Pre-authorized debits are best suited for businesses that have an ongoing trusted relationship with their customers.

1. Set it and forget it. Recurring payments can be scheduled to happen automatically. No more time spent chasing down payments.
2. Low cost. Pre-authorized debits allow businesses to keep more of a customer payment. Credit card processing usually costs between 2-4% of the payment.
3. Timely and predictable payments. Businesses can initiate and decide when payments are withdrawn from customers’ accounts, reducing the risk of late payments.
4. Improved cash flow. Businesses receive payments on a regular schedule, reducing cash flow gaps and allowing for better income forecasting and expense management.

While credit cards are versatile and can be automated like pre-authorized debit, their versatility comes with a financial premium. Credit card payment processing is priced on a percentage fee. Whether at a register terminal or at an online payment gateway, credit card processing usually costs between 2-4% of the payment. This means a $100 payment costs between $2 and $4 to process, leaving the payee with only $98 to $96 settled.

Pre-authorized debit, on the other hand, can be processed without a percentage fee. They are offered by some banks and some third-party processors (such as Rotessa) for a fixed, non-percentage fee. Rotessa, for example, offers PAD payments for as low as 35 cents each.

For small payments, the difference between a percentage fee and a fixed fee may not be significant. For larger payments, however, like $1000 for rent, the difference can be substantial — between $20 and $40 for a credit card payment and a few cents for a pre-authorized debit payment.

Pre-authorized debits (PADs) allow you to automatically withdraw funds from your customers’ bank accounts on a scheduled basis. Once your customer gives consent, payments are automatically collected on the agreed-upon dates, ensuring timely payments without the need for manual invoicing or follow-ups.

PADs can take between one and four business days to settle in the payee’s account after the process date. It may seem like a while, but the settlement delay ensures that the funds are actually cleared from the payor’s account before being settled. The delay also decreases the risk of fraud and provides a buffer time for payment cancellation or reversal.

A PAD rejection is when a PAD payment has been submitted to the ACSS payment network but failed to process and settle into a payee’s bank account. There are a number of reasons why a PAD rejection can occur. There could be insufficient funds in the payor’s bank account, the payor could request the payment to be stopped, or incorrect bank account numbers could have been submitted.

Pre-authorized debits (PADs) and ACH payments are both electronic bank transfers. ACH, used in the U.S., refers to the Automated Clearing House network that processes these payments. In Canada, the equivalent is PADs processed through the ACSS network, which also handles additional payment types like cheques and debit transactions. In Canada, EFT is a broader term that includes all electronic payments, not just those equivalent to ACH transactions in the U.S.

A pre-authorized debit form is a legal form that outlines the payment terms between a payor and a payee. It is a requirement for collecting payments over Canada’s EFT network.

To collect payments directly from a customer’s bank account over the EFT network, you need permission from your customers. A properly formatted pre-authorized debit form is the way to gain this permission.

Authorization can be collected online as well as on paper (and even over the phone). There are specific requirements for online pre-authorized debit forms. Most businesses that facilitate pre-authorized debit payments online use a third-party payment provider like Rotessa.

Rotessa provides online tools to easily request and receive the permission needed from your customers.

Give the form to your customer to fill out. Once your customer has filled out all the necessary fields the form can be used to automate payments over the EFT network. You can access the EFT network from your bank or a third-party pre-authorized debit provider like Rotessa.

Yes. If a customer gives you notification that they want to cancel an authorization their request must be honoured. This is according to Payments Canada regulations.

A pre-authorized debit form requires the following elements:

1. Contact details – So the payor can get in touch with you.
2. PAD category – Is the payor a person or a business?
3. Timing – This outlines to the payor when the payments are to be taken out (weekly, monthly, bi-monthly, annual, on set dates or otherwise.) You also need to explain if each payment is to be triggered by a specified act, event or other criteria. If it’s to be triggered by a specific act, it needs to be clear on what that is.
4. Amount – So the payor knows how much is being taken from their account. If it’s an authorization for variable amounts, it needs to be clearly stated.
5. Authorization statement – A clear statement that outlines authorization to withdraw funds from a particular account.
6. Recourse statement – So the payor understands their rights to reimbursement for unauthorized debits.
7. Cancellation details – So the payor knows how to cancel the agreement.
8. Date of agreement and signature (if a physical paper form).
9. Payment Service Provider Statement – If you use a third party to process your payments (like Rotessa), you are required to notify your customers.

Use Rotessa’s PAD form generator tool.

No, PAD forms can only be used for debiting payments through the EFT network.

An ACH authorization form is a legal form that outlines the payment terms between a payor and a payee. It is a requirement for collecting payments over the ACH network.

To collect payments directly from a customer’s bank account over the ACH network, you need permission from your customers. A properly formatted ACH authorization form is the way to gain this permission.

ACH authorization can be collected online as well as on paper (and even over the phone). There are specific requirements for online ACH authorization. Most businesses that facilitate ACH payments online use a third-party payment provider like Rotessa.

Rotessa provides online tools to easily request and receive the permission needed from your customers.

Give the form to your customer to fill out. Once your customer has filled out all the necessary fields the form can be used to automate payments over the ACH network. You can access the ACH network from your bank or a third-party or ACH provider like Rotessa.

Yes. If a customer gives you notification that they want to cancel an ACH authorization their request must be honored. This is according to federal ACH regulations.

An ACH authorization form requires the following elements:

1. Your contact information
2. Payor’s name
3. Payor’s bank account number
4. Payor’s bank routing number
5. Amount and timing (for recurring and one-time payments)
6. Authorization statement
7. Cancelation details
8. Date of agreement and signature (if a physical paper form)
9. Indication of checking or savings account

Use Rotessa’s ACH form generator tool.

No, ACH authorization forms can only be used for debiting payments through the ACH network.