Recurring Payment Agreement for Canada

Recurring Payment Agreement Template for Canada

A comprehensive legal agreement governed by Canadian federal and provincial laws that establishes the terms and conditions for recurring payment arrangements between a service provider/merchant and a customer. This document ensures compliance with Canadian payment regulations, consumer protection laws, and privacy requirements while defining the authorization, execution, and management of regular periodic payments. It includes provisions for payment schedules, modification procedures, termination rights, and data protection measures, suitable for both business-to-business and business-to-consumer relationships.

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What is a Recurring Payment Agreement?

The Recurring Payment Agreement is essential for businesses operating in Canada that collect regular payments from customers for ongoing services or products. This document is designed to comply with Canadian federal legislation including the Payment and Clearing Settlement Act and PIPEDA, as well as provincial consumer protection laws. It should be used when establishing automated payment arrangements for subscriptions, membership fees, installment payments, or any recurring billing scenario. The agreement covers critical aspects such as payment authorization, processing terms, privacy considerations, and cancellation rights, providing both parties with clear terms and legal protection. It's particularly important in the current digital economy where automated payments are becoming the norm for business transactions.

What sections should be included in a Recurring Payment Agreement?

1. Parties: Identification of the payment processor/merchant and the customer, including full legal names and contact details

2. Background: Context of the agreement and the services/products for which recurring payments are being established

3. Definitions: Key terms used throughout the agreement, including payment-related terminology

4. Payment Authorization: Customer's explicit authorization for recurring charges and acknowledgment of payment terms

5. Payment Terms: Details of payment amount, frequency, processing dates, and payment method

6. Duration: Term of the agreement and renewal provisions

7. Modification of Payments: Process for changing payment amounts and notification requirements

8. Termination Rights: Conditions and process for ending the recurring payment arrangement

9. Failed Payments: Procedures for handling declined transactions and insufficient funds

10. Privacy and Data Protection: Handling of personal and financial information

11. Governing Law: Applicable jurisdiction and legal framework

What sections are optional to include in a Recurring Payment Agreement?

1. Multiple Payment Methods: Include when agreement allows for alternate payment methods or backup payment options

2. International Payments: Include when payments may be processed across different currencies or jurisdictions

3. Rewards or Loyalty Programs: Include when recurring payments are linked to reward points or loyalty benefits

4. Third-Party Payment Processors: Include when external payment processors are involved in handling transactions

5. Service Level Guarantees: Include when specific service levels or product delivery commitments are tied to payments

6. Dispute Resolution: Include detailed dispute resolution procedures when dealing with high-value or complex payment arrangements

What schedules should be included in a Recurring Payment Agreement?

1. Schedule A - Payment Schedule: Detailed breakdown of payment dates, amounts, and frequency

2. Schedule B - Authorized Payment Methods: List of accepted payment methods and associated processing terms

3. Schedule C - Fee Schedule: Breakdown of all applicable fees, including any processing fees or penalties

4. Appendix 1 - Payment Authorization Form: Standard form for capturing payment method details and authorization

5. Appendix 2 - Cancellation Form: Standard form for requesting cancellation of recurring payments

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Payment Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
Relevant Industries

Financial Services

Software and Technology

Subscription Services

Retail

Telecommunications

Utilities

Professional Services

Education

Healthcare

Insurance

Property Management

Media and Entertainment

Relevant Teams

Legal

Finance

Accounts Receivable

Revenue Operations

Compliance

Customer Service

Risk Management

Payment Operations

Business Development

Contract Administration

Relevant Roles

Finance Manager

Legal Counsel

Compliance Officer

Accounts Receivable Manager

Business Development Manager

Contract Administrator

Revenue Operations Manager

Billing Coordinator

Customer Service Manager

Risk Manager

Payment Operations Director

Subscription Services Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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