Why are PAD (Pre-Authorized Debit) payment delays so long with our previous solution?

Hello,

First of all, we’re truly sorry that this situation is affecting you so significantly. We want to make it absolutely clear that this is not an attempt to push you toward our new payment partner. These delays are the result of regulatory changes that affect the entire industry across Canada, not a decision made by Plexflow.

Since November 2024, new federal rules regulating electronic payment services have come into effect. These rules are part of the Retail Payment Activities Act (RPAA) and specifically stem from the National Security Review process linked to that legislation. Under this framework, all companies involved in electronic payment processing must now undergo stricter compliance and verification processes, both at onboarding and on an ongoing basis.

👉 So what does this mean for DPA (Pre-Authorized Debit) payment delays?

Before November 2024, DPA transfers were typically completed within 1 to 2 business days. However, due to the added compliance checks, financial institutions and payment service providers must now validate more information, which can slow down transaction processing. These checks may include:

• Enhanced identity verification for both payer and recipient
• In-depth validation of the bank accounts involved
• Longer processing times when a new account or payment partner is used for the first time
• Mandatory delays if any risk flags are raised or unusual fund movement is detected

While Plexflow continues to operate using secure and efficient systems, these external regulatory requirements apply to all providers in the industry, regardless of their platform or size.

For full details on this regulatory framework and the reasons behind these delays, you can refer to the official Government of Canada page:

🔗 [National Security Review Process – Government of Canada]()

What is Plexflow doing to improve the situation?

• We are working closely with our providers to reduce processing times whenever possible, within the limits of the new compliance requirements.
• We have launched a new payment solution that is fully compliant with the RPAA and offers guaranteed next-business-day fund delivery after the debit is processed.
• We are actively assisting all clients in migrating to this new, faster, and more stable infrastructure.

We fully understand the financial and operational impact these delays can cause. Please rest assured that our priority is to provide you with the most reliable and efficient payment solution possible, while adhering to the legal framework now in place.

If you have any further questions or need assistance, don’t hesitate to reach out.

Sincerely,

The Plexflow Team

Updated on: 11/06/2025