Understanding PAD Agreements

What is a PAD Agreement?

A PAD (Pre-Authorized Debit) Agreement is an electronic authorization that confirms a cardholder has agreed to have their payment method securely saved and used for future transactions. This agreement is a critical part of compliance and ensures transparency between the customer and the merchant.

When Is a PAD Agreement Created?

PAD Agreements are only created when the end customer (cardholder) directly adds their payment information through one of the following channels:

• A Benji Pays payment page
• A payment info request sent by the merchant
• The customer portal

These channels ensure that the cardholder actively consents to their card being stored and used, and they electronically sign the PAD Agreement at the time of submission.

When Is a PAD Agreement Not Created?

PAD Agreements are not generated when a merchant manually adds a card through the Benji Pays merchant portal. In such cases, since the cardholder did not directly submit their information through a Benji Pays interface, no consent is recorded, and therefore no PAD Agreement is created.

Why This Matters

PAD Agreements serve as proof that the customer has authorized future charges to their payment method. If a merchant adds card details themselves, there is no record of consent via Benji Pays, and this could present compliance or chargeback risks.

Example PAD Agreement

Date of Agreement: Jun 24, 2025
Customer: John Smith
Card Information: Visa ending in 1234, expiry 12/26
Processor: Bambora
Authorization Text:

I authorize Merchant to charge my payment method provided above for all agreed upon purchases. I understand that my information will be saved on file for future transactions on my account.

Created via: Payment pages