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 a Supplementary Agreement for the purposes of the Loop Platform Agreement. 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 where the funds are owed to Loop or collected by Loop on behalf of a third party — including fees, card and credit facility repayments, and payments you direct us to make. Where you are instead moving your own funds between two accounts your business holds, our Cash Management PAD Agreement applies. A single debit will never combine the two.
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 and that all required signing authorities have approved this Agreement.
Category — Business PAD. The PADs issued under this Agreement are Business PADs, drawn for the payment of goods, services, fees and other amounts related to your business or commercial activity. This affects your dispute deadline — see Section 8.
Amount and timing. PADs are for variable amounts and may be issued sporadically or at set intervals. We may issue a PAD when: you instruct a payment; an amount becomes due under the Platform Terms, including fees, interest and foreign exchange amounts; an amount becomes due under a card agreement or credit facility, including scheduled, minimum, overlimit, past-due and accelerated amounts; an amount becomes due to a third party you have directed us to pay; a returned-item, late-payment or NSF fee becomes payable; or we need to correct an amount credited to you in error.
Sporadic PADs are 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 one 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.
Pre-notification — waived. Where PADs recur at set intervals, we would normally give you at least 10 calendar days' notice of the amount and date of each variable PAD and of any change to a fixed-amount PAD.
YOU WAIVE PRE-NOTIFICATION. LOOP DOES NOT HAVE TO GIVE YOU ADVANCE NOTICE OF THE AMOUNT OF A PAD, OR OF ANY CHANGE TO THE AMOUNT OR PAYMENT DATE, BEFORE IT IS DEBITED. THIS INCLUDES SCHEDULED PAYMENTS, FEES, INTEREST, NSF FEES AND LATE PAYMENT FEES.
You may withdraw this waiver at any time by writing to pad@bankonloop.com, after which we will give pre-notification in accordance with Rule H1 and may require you to use another payment method.
Confirmation — waived. We would normally confirm this Agreement to you at least 10 calendar days before the first PAD.
YOU WAIVE THE 10-DAY CONFIRMATION PERIOD. LOOP MAY ISSUE THE FIRST PAD WITHOUT PROVIDING CONFIRMATION IN ADVANCE.
We will instead provide confirmation within 5 calendar days after the first PAD, by email or in the Loop platform, setting out the Linked Account, the amount and frequency of PADs, and your pre-notification, cancellation and recourse rights.
When we collect for someone else. Where the amount is owed to Loop, Loop is the payee. Where you have directed us to pay a third party — a supplier, biller or other counterparty you owe — Loop acts as a payment service provider collecting on that party's behalf under an agreement between Loop and that party. Loop is not a party to your contract with them, is not responsible for the goods or services they provide, and does not assume their obligations to you. In either case, Loop's name (or a name we use for payment processing) may appear on your bank statement rather than the third party's. We may use our sponsoring financial institution and other processors to issue PADs and may disclose the information in this Agreement to them in accordance with our Privacy Policy.
Recourse. You have certain recourse rights if any debit does not comply with this agreement. For example, you have the right to receive reimbursement for any debit that is not authorized or is not consistent with this PAD Agreement. To obtain more information on your recourse rights, contact your financial institution or visit www.payments.ca.
You may claim reimbursement from your Processing Institution where a PAD was not drawn in accordance with this Agreement, where this Agreement had been revoked before the PAD was issued, or where a confirmation or notice required by Rule H1 was not given and you had not waived it. Because these are Business PADs, a claim must be made within 10 business days of the date the PAD was debited. After that, the claim is resolved directly between you and Loop — contact pad@bankonloop.com and we will investigate.
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).
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 9 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.
