The Authorization Letter for Payment is a critical document used in Canadian business and personal transactions where formal delegation of payment authority is required. This document is particularly important when an individual or organization needs to authorize another party to handle financial transactions on their behalf, whether for a single payment or recurring transactions. It must comply with Canadian federal legislation including the Bank Act and PIPEDA, as well as relevant provincial regulations. The letter typically includes essential details such as the parties' information, payment specifications, duration of authority, and any specific conditions or limitations. Common use cases include business representatives handling company payments, personal financial management during absence, or third-party payment processing arrangements.

1. Date and Location: Current date and place of writing the authorization letter

2. Recipient Information: Full name and address of the institution or person to whom the authorization letter is addressed

3. Authorizing Party Details: Complete information of the person giving the authorization, including full name, address, and contact information

4. Authorized Party Details: Complete information of the person being authorized to receive/process payments

5. Authorization Statement: Clear and specific statement of the payment authorization being granted

6. Payment Details: Specific information about the payment(s) being authorized, including amount, frequency, and purpose

7. Duration of Authorization: Time period for which the authorization is valid

8. Signature Block: Space for signature of the authorizing party, with full name and date