In these terms (this "Agreement"), "Loop", "we", "us" and "our" mean Loop Payments Inc. and its affiliates, successors and permitted assigns. "You" and "your" mean the business that holds a Loop Account and each person who accepts this Agreement on its behalf.
Loop Payments Inc. is registered with FINTRAC as a money services business (M22489771) and is registered with and supervised by the Bank of Canada as a payment service provider under the Retail Payment Activities Act.
This Agreement is the PAD Agreement referred to in the Loop Platform Agreement and is a Supplementary Agreement for its purposes. Capitalized terms not defined here have the meanings given to them in the Platform Agreement.
When this Agreement applies. This Agreement governs pre-authorized debits used to move funds between two accounts held by your business — from an account you hold at one financial institution into your Loop Account. It applies only where your Loop Account is held in your business's own name at a Payments Canada member institution. Where the account is not held that way, or where the funds are owed to Loop or collected by us for a third party, our Business PAD Agreement applies instead.
Authorization. You authorize Loop to issue pre-authorized debits ("PADs") against any Canadian deposit account you link to your Loop Account (each, a "Linked Account"), and you authorize the financial institution holding that account (your "Processing Institution") to debit it for the amount of each PAD. You represent that you are an authorized signatory on the Linked Account, that all required signing authorities have approved this Agreement, and that both accounts are held by your business.
Category — Cash Management PAD. The PADs issued under this Agreement are Cash Management PADs. They transfer, consolidate or reposition your own funds between your accounts. This affects your rights — see Section 6.
Amount and timing. PADs are for variable amounts and may be issued sporadically or at set intervals, as you instruct. We may also issue a PAD to correct an amount previously credited to you in error.
Each transfer is separately authorized. Where a PAD is sporadic, we are required to obtain your authorization for each and every PAD before it is issued, and this requirement cannot be waived. You authorize each PAD in the Loop platform: when an authorized administrator signs in and approves a specific amount, that approval is your authorization and sufficient authority for your Processing Institution to debit the Linked Account. You are responsible for keeping your credentials secure and your list of administrators current.
Your financial institution does not check our work. Your Processing Institution is not required to verify that a PAD has been issued in accordance with this Agreement. This Agreement is provided for the benefit of Loop and of your Processing Institution, in consideration of your Processing Institution agreeing to process debits against the Linked Account in accordance with the rules of the Canadian Payments Association (operating as Payments Canada).
Recourse. CASH MANAGEMENT PADS DO NOT CARRY RECOURSE THROUGH THE PAYMENTS CANADA CLEARING SYSTEM. Unlike a Business PAD or Personal PAD, you cannot claim reimbursement from your financial institution for a Cash Management PAD that was not drawn in accordance with this Agreement. Any such dispute must be resolved directly between you and Loop.
The one exception is where no PAD agreement exists at all: you may claim reimbursement from your Processing Institution within 90 calendar days of the posting date. If a debit is wrong, contact us at pad@bankonloop.com and we will investigate and correct it.
Cancelling. You may revoke this Agreement at any time by removing the Linked Account in the Loop platform or writing to pad@bankonloop.com. We will use best efforts to cancel in the next processing cycle, and cancellation takes effect no later than 30 calendar days after we receive your notice. Cancelling does not stop a PAD already authorized and in progress, and does not reduce any amount you owe us — you must make other arrangements satisfactory to us to pay amounts as they come due. For a sample cancellation form or more information on your right to cancel, contact your financial institution or visit www.payments.ca. We may terminate this Agreement at any time on written notice to you.
Assignment. LOOP MAY ASSIGN THIS AGREEMENT AND ITS RIGHTS UNDER IT TO ANY AFFILIATE, SUCCESSOR OR PURCHASER OF ALL OR SUBSTANTIALLY ALL OF ITS BUSINESS OR ASSETS, INCLUDING BY REORGANIZATION, CHANGE OF CONTROL OR OPERATION OF LAW. WE WILL GIVE YOU WRITTEN NOTICE OF THE FULL DETAILS, INCLUDING THE IDENTITY AND CONTACT INFORMATION OF THE ASSIGNEE.
You may not assign this Agreement without our prior written consent.
Account changes and returned PADs. Update your Linked Account in the Loop platform, or tell us in writing at least 15 business days before your next scheduled PAD, if your account details change. You authorize us to act on any notice of change we receive regarding your payment routing information. If a PAD is returned unpaid, we may re-present it once, for the same amount, within 30 calendar days; any NSF or late fee is charged separately and never added to a re-presented PAD.
Electronic acceptance. You accept this Agreement in the Loop platform. We record the date and time of acceptance, the user who accepted, and the Linked Account it applies to; that record is the execution date and your signature. We verify your identity using commercially reasonable methods, retain an audit trail for at least 12 months after the last PAD, and will provide a copy of this Agreement or evidence of your authorization on request. Electronic notices are governed by the Loop Electronic Communications Agreement. We may amend this Agreement on 30 calendar days' notice; if you do not agree, cancel under Section 7 before the amendment takes effect.
Language. The parties have expressly requested that this Agreement be drawn up in English. Les parties ont expressément demandé que cette convention soit rédigée en anglais.
Governing law. This Agreement is governed by the laws of Ontario and the federal laws of Canada applicable in it, and the parties submit to the exclusive jurisdiction of the Ontario courts.
Legal name: Loop Payments Inc.
Address: 1255 Bay Street, Suite 900, Toronto, Ontario M5R 2A9
Email: pad@bankonloop.com
Contact us to make an inquiry — including about our privacy and information security practices — to obtain information, or to seek recourse in respect of any PAD.
