Pre-authorized debit (PAD) payment processors are the best way to collect recurring payments in Canada. Banks and credit unions often fail to streamline PAD payment collection for small businesses. Fortunately, third-party pre-authorized debit processors make PAD as easy as possible. With so much competition in the payment processing market, which is the best PAD payment processor for your small business’s needs?
In Canada, there are five major PAD processors for small businesses to choose from:
Rotessa, GoCardless, Plooto, Helcim and Telpay.
All (except GoCardless) are headquartered in Canada and connected to the same federal settlement system. Each processor differs, however, in pricing model and features.
What’s in this article?
What is a PAD payment processor?
Pre-Authorized Debit, or PAD, is an electronic payment method that allows your business to withdraw money directly from your customer’s bank account. The term “pre-authorized” refers to an agreement between your business and your customer. In the agreement, the customer gives permission for you to withdraw money from their account based on the terms outlined. This can work for recurring payments on a set schedule, or variable amounts too.
To learn more, read our overview of pre-authorized debit payments.
Five PAD payment processors with pricing compared
Here’s a quick look at five popular PAD payment processors and their pricing details compared:
| Software | Best for | Pricing* | $/50 tx. per month** |
|---|---|---|---|
|
Small businesses looking for a reliable, easy-to-use, and inexpensive PAD payment processor. | 1-500 transactions/month: $25/month + $0.50/transaction
500+ transactions/month: Custom pricing |
$50.00 |
|
Enterprises with need for international transfers and broader software integrations. | Standard plan: 0.75% + $0.40/transaction (capped at $3) – Advanced plan: 1% + $0.40/transaction (capped at $4) |
$150 – $200 |
|
Businesses in need of a wider variety of higher-fee services than just pre-authorized debits. | Grow plan: $32/month + $0.50/transaction – Pro plan: $99/month + $0.50/transaction |
$57 – $124 |
|
Retailers looking for a complete solution to accepting payments for products in-store or online. | Single payment: 0.5% + $0.25/transaction (capped at $6) – Recurring payments: 0.9% + $0.25/transaction (capped at $6) |
$137.50 – $237.50 |
|
Small businesses looking for a wider array of payment options than PAD. | 1-14 transactions/month: $10 + $1/transaction ($99 setup fee)
15-99 transactions/month: $24 + $0.75/transaction ($49 setup fee) 100+ transactions/month: $39 + $0.65/transaction |
$61.50 |
*Figures accurately reflect pricing as of February 2026.
**Based on an average transaction value of $500, at 50 transactions/month.
Main things to consider when choosing a PAD payment processor
Pricing
As every small business owner knows, pricing is a significant factor when choosing business software. Perhaps the strongest appeal of pre-authorized debits is the cost-saving opportunities. Many of the PAD processors on this list have a fixed fee that severely undercuts the percentage cost of credit card processing.
Not all PAD payment processors have the same pricing model, however. Some processors, such as Helcim and GoCardless, charge a percentage of the payment (similar to credit card fees), while others charge a monthly subscription or per-transaction fee. The extra cost of a percentage-based fee may be worth it for your business if the payment processor offers the features you’re looking for.
It’s also important to note any additional/hidden fees that some processors have. These could include setup fees, cancellation fees, and batch fees, which add additional cost to the base prices listed in the table above.
Features
Each PAD processor will offer different features. When choosing a processor, review the list of product features. Ask yourself the following questions:
- Does my business need to accept credit cards/cheques as payment?
- What software does my business need to integrate with? (e.g. QuickBooks Online, Xero, Sage, etc.)
- Does my business have a physical storefront where customers can purchase?
- Does my business process international transfers?
One of the most requested features among many small businesses is the ability to integrate with other online software. Many of the processors on this list have software integrations with QuickBooks Online, Xero or Sage.
Customer and user experience
Another consideration is the payment experience for a business and its customers. If a processor does not offer a user-friendly payment (or authorization) form, it can create unnecessary friction and hassle for the customer.
Similarly, the payment process should be simple for the business. Before choosing a PAD processor, it’s a good idea to demo or sample the user interface. Ask questions like:
- Does this software look intuitive and easy to use?
- Is the interface cluttered with features that my business doesn’t need?
- What do customer reviews say about this payment processor’s customer service?
Five third-party PAD payment processors
Rotessa
Founded in 2010 near Winnipeg, MB, Rotessa helps over 3,000 businesses across Canada simplify payment collection directly from bank accounts, offering a flat-fee alternative to credit card processors.
Pricing
Rotessa’s pricing is the most straightforward and cost-effective of all the PAD payment processors on this list. They charge per transaction (in tiers) instead of a percentage-based fee, resulting in lower costs for your small business. All features are available across all pricing tiers. You also don’t pay anything if you’re not processing transactions in a given month.
| Transactions/month | Cost |
|---|---|
| 1-500 | $25/month + $0.50/transaction |
| 500+ | Contact for custom pricing |
Additional fees
Rotessa has no onboarding or hidden fees. The only additional fees you may encounter are decline fees and instant bank verification fees, which you can absorb yourself or pass along to your customer.
- NSF, stopped payment, or agreement terms not met: $30 each
- Online customer bank authentication (when required): $2 each
Features
Rotessa is an online software focused exclusively on PAD payments (no credit card processing). The software features an easy-to-use interface for seamless customer payment withdrawals. Below are some of the functionalities they offer:
- Receive PAD payments from Canadian businesses/individuals
- Headquartered in Winnipeg, MB
- Integration with QuickBooks Online, Xero, and Zapier.
- Custom API integration
- Payment reminders/receipts
- Free PAD form generator
Customer and user experience
Rated 4.7 stars out of 5 across Google, Facebook, and QuickBooks Online/Xero app stores, Rotessa is highly praised for its excellent customer service and live chat.
Pre-authorized debit payments made simple
Rotessa is your trusted partner for seamless payment automation and secure recurring payments. No onboarding costs or percentage-based fees.
GoCardless
Pricing
GoCardless offers its PAD payment processing services on a percentage basis, with a cap on the fee (the cap varies by plan). Note that international payments are priced differently, and exact pricing will depend on currency conversion.
| Domestic | International | |
|---|---|---|
| Standard | 0.75% + $0.40/transaction (capped at $3) | 1.75% + $0.40* |
| Advanced | 1% + $0.40/transaction (capped at $4) | 2% + $0.40* |
| Pro | 1.25% + $0.40/transaction (capped at $5) | 2.25% + $0.40* |
*Currency conversions may cause the $0.40 amount to differ.
Additional fees
GoCardless has very few additional fees, charging only for refunds and chargebacks (over a certain monthly threshold). They also offer additional services for an additional cost (paid monthly).
- Refund fee: $0.50/refund
- Chargeback fee: $5.00/chargeback (over 15 chargebacks/month)
- Design a customer experience tailored to your brand needs: $275/month (Advanced plan only)
- Show your business name on customers’ bank statements: $75/month
Features
From robust integrations to customizable user experiences, GoCardless offers a wide range of features for enterprises and businesses of any size.
- Collect PAD payments from local and international customers
- Integrate with over 350+ partners, including QuickBooks Online, Xero, and Sage.
- Headquartered in the United Kingdom
- Custom API integration
- Automatically retry failed payments (Advanced plan only)
Customer and user experience
Rated 3.3 stars out of 5 on Google reviews.
Plooto
Pricing
Plooto’s base pricing is straightforward, with only two plans to choose from, each offering different features. However, you pay regardless of whether you process transactions. There are also several additional fees that are not adequately disclosed.
| Plan | Cost |
|---|---|
| Grow | $32/month + $0.50/transaction* |
| Pro | $99/month + $0.50/transaction* |
*The $0.50/transaction fee is not disclosed on their website, but was gathered by contacting Plooto’s live sales chat, which no longer exists at the time of writing.
Additional fees
Due to the structure of Plooto’s website, it’s difficult to determine the actual fees for its services. Here’s what we’ve discerned to the best of our ability:
- Payables
- Domestic EFT/EMT payments: $0.50/transaction
- PAD/ACH payments: $0.50/transaction (bulk packages available)
- Cross-border payments: $10
- Foreign exchange rates for international payments (undisclosed)
- Pay by card: 2.9%
- Paper cheques: $6/cheque
- CRA payments: $3/payment
- Failed Credits: $2 each
- Receivables
- Accept credit cards: 2.9%/transaction
- Non-Sufficient Funds Returned: $30 each
- Regular Receivable Refund: $0.50 domestic, $9.99 cross-border
- Check Stop Payment/Return: $10 Canada, $30 USA
- Recalled Direct Deposit Payments: $10 each
- Recalled Email Money Transfer: $5 each
- Chargeback fee: $15 each
Features
Plooto offers a wide variety of features, including providing receivables and payables as a service. They also
- Send/collect PAD payments to/from local and international customers
- Pay by PAD/ACH, card, or cheque
- Headquartered in Toronto, Ontario
- QuickBooks Online, Xero and NetSuite (Pro plan only) integrations
- CRA payments
- Accept credit card payments
- Expedite payments to reach your customer’s bank account on the next business day (for an additional fee)
Customer and user experience
4.1/5 stars average between Google reviews and QuickBooks Online/Xero app stores.
Helcim
Helcim is a broader payment software than most on this list. Unlike the other PAD software listed, they also produce physical point-of-sale terminals for debit and credit card processing. They also offer an online e-commerce payment gateway and online PAD processing.
Pricing
Helcim’s pricing model is also relatively straightforward. While being one of the higher-cost ones if you’re only processing PAD payments (especially if you rely on recurring transactions), they offer a wide range of features that might make the extra money worth it to your business. The lack of additional fees also means you can rest easy knowing there won’t be any surprises down the road.
| Transaction amount | Single payments | Recurring payments |
|---|---|---|
| Below $25,000 | 0.5% + $0.25/transaction (capped at $6) | 0.9% + $0.25/transaction (capped at $6) |
| Above $25,000 | 0.55% + $0.25/transaction (uncapped) | 0.95% + $0.25/transaction (uncapped) |
Additional fees
- Rejected/returned PAD transfer: $5 each
- Chargeback disputes: $15 each or free when won
Features
- Collect PAD payments from local and international customers
- Collect debit and credit card payments
- Pass on your credit card fees to your customer
- Headquartered in Calgary, Alberta
- POS software and hardware for in-person and online stores
- Accept payments on your own computer with Virtual Terminal
- No-code, fully hosted online store
- Add branded payment pages to your website
- Customer and inventory management
- Integration with 35 third-party software, including QuickBooks Online, Xero, Jane, Wave, WooCommerce, and Zoho.
- Developer API
Customer and user experience
4.2/5 stars across Google reviews, G2, Trustpilot and QuickBooks Online/Xero app stores
TelPay
Pricing
The cost of doing business through Telpay primarily comes from additional fees, though the lower monthly costs are welcome for smaller transaction amounts. However, monthly payments continue to process regardless of whether you are processing payments, so you will need to contact their customer support to place your account on hold temporarily.
Telpay is also the only option on this list with a $99 installation fee. They also charge additional fees that are uncommon in modern software, such as a $50 password reset fee.
| Starter | Standard | Max | |
|---|---|---|---|
| Transactions/month | 1-14 | 15-99 | 100+ |
| Monthly cost | $10 | $24 | $39 |
Additional fees
| Starter | Standard | Max | |
|---|---|---|---|
| Pay bills* | $1.00 | $0.75 | $0.55 |
| Pay employees* | $1.50 | $0.85 | $0.65 |
| Transfer funds* | $1.50 | $0.95 | $0.90 |
| Receive payments* | $1.00 | $0.75 | $0.65 |
| Pay government remittance | $3.00 | $2.00 | $2.00 |
| Pay by cheque** | $6.00 | $4.00 | $4.00 |
| One-time implementation fee | $99.00 | $49.00 | — |
*per transaction
**per cheque, when banking information is not present
- Returned payments: $10 each
- Return payments made by cheque: $15 each
- Returned debit: $30 each
- Manual adjustments and payment tracing: $25 each
- Session reset fee: $25
- Password reset fee: $50
- Manual information recovery: $150 first hour, $75 each additional hour
Features
Telpay offers standard PAD payment solutions, including both payables and receivables. They also offer international payments and payroll/direct deposit services. Telpay’s services offer a well-rounded feature set suitable for any small business.
- Send/collect PAD payments to/from local and international customers
- Reimburse employee expenses
- Headquartered in Winnipeg, MB
- Payroll/direct deposit
- Integration with QuickBooks Online/Desktop, Sage, Adagio, CDK, and Easypay
Customer and user experience
4/5 stars across Google reviews and the QuickBooks Online app store.
How to start collecting PAD payments with a processor
After choosing the PAD payment processor that best suits a business’s needs, the first step is to sign up. Signing up for a PAD processor requires a few steps for security and to meet legal anti-money laundering requirements. For example, the owner or manager will likely need to submit a personal ID, business documentation and a voided business cheque in the sign-up process.
Once a business is signed up and its account is approved by a PAD processor, it can begin processing PAD payments.
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A better way to get paid
Withdraw money directly from your customer’s bank account when their payments are due. Schedule one-time or recurring payments to get paid on time.