New: Pre-Authorized Debits Get You Paid on Time, Every Time

Give Canadian customers the flexibility and convenience of paying for recurring invoices directly from their bank account.

pad payments

Congratulations, you’ve just won a client who happens to need your services every month. And whether you’re renting them equipment, or charging them a monthly consulting fee—the best way to make sure they get continuously billed is with a recurring invoice.

But when it comes time to get paid for that invoice, they may have forgotten it was being sent, or they don’t want to pay for a subscription on credit. Long story short: It’s frustrating chasing payments.

To help, FreshBooks has added Pre-Authorized Debits. Now, you can automatically debit a client’s bank account when a payment is due (with their permission, of course). It’s simple, easy, and convenient.

What Are Pre-Authorized Debits?

Pre-Authorized Debits (PADs) are an easy way to collect invoice payments on your client’s behalf. Just create a recurring invoice with PAD enabled, and when your client pays they can enter and save their bank details (one-time only). This allows you to then draw funds straight from their bank account, every time a recurring payment is due.

Who Can Use Pre-Authorized Debits?

Right now, this feature is only available to Canadian based users billing Canadian clients using Stripe payments.

How Do I Enable Pre-Authorized Debits?

To enable Pre-Authorized Debits:

  1. Log into your FreshBooks account and click the gear icon in the top left corner.
  2. Click Online Payment Settings. Here’s what it looks like in-app:

pre-authorized debits

  1. Scroll down to Other Ways To Get Paid and select Connect with Stripe:
    pre-authorized debits
  2. Verify your email, business information, and add a bank account.
  3. That’s it, PAD is now enabled!

Now you’ll have the option to accept PAD on any Recurring Template:

  1. Click Accept Online Payments on the right of the invoice.
  2. Select Stripe and click the checkbox beside PAD.
  3. Choose whether it’s for Business or Personal Debit.
  4. Click Done.

Here’s what it looks like on an invoice:

pad payments

Note: When your client receives their first invoice from the Recurring Template they’ll be asked a few questions to link their bank account and receive email confirmation from you for their records.

Why Should I Use Pre-Authorized Debits?

Instead of waiting for a customer to send a payment, Pre-Authorized Debits allow you to debit a customer’s bank account when the payment is due. The result? No more chasing payments. Other benefits include:

  • Automatic payments mean less awkward follow-ups
  • Perfect for recurring invoices (e.g., rent, subscriptions)
  • Only a 1% fee + $0.40 per transaction

Need Help With Pre-Authorized Debits?

If you have any questions on how to get started with Pre-Authorized Debits, feel free to reach out here.

Dave Hayes
about the author

Sr. Copywriter, FreshBooks Dave is a Senior Copywriter currently working for FreshBooks, serving all the amazing businesses using the platform. When he’s not writing, Dave can likely be found binging Netflix alongside his dog Indy.