PAD meaning in Business ?

Answer: What is Pre-Authorized Debit mean?

A direct debit or direct withdrawal is a financial transaction in which one person (or company) withdraws funds from another person's bank account. Formally, the person who directly draws the funds ("the payee") instructs their bank to collect (i.e., debit) an amount directly from another's ("the payer's") bank account designated by the payer and pay those funds into a bank account designated by the payee. Before the payer's banker will allow the transaction to take place, the payer must have advised the bank that he or she has authorized the payee to directly draw the funds. It is also called pre-authorized debit (PAD) or pre-authorized payment (PAP). After the authorities are set up, the direct debit transactions are usually processed electronically.

Direct debits are typically used for recurring payments, such as credit card and utility bills, where the payment amounts vary from one payment to another. However, when the authorization is in place, the circumstances in which the funds are drawn as well as the dates and amounts are a matter of agreement between the payee and payer, with which the bankers are not concerned.

In countries where setting up authorization is easy enough, direct debits can also be used for irregular payments, such as for mail order transactions or at a point of sale. The payer can cancel the authorization for a direct debit at any time, and the banker can decline to carry out a debit if the transaction would breach the terms of the bank account out of which payment is to be made, for example if it were to cause the account to overdraw. (Banking law does not authorize a bank to alter the payment amount.)

A direct debit instruction differs from a direct deposit and standing order instruction, which are initiated by the payer. A standing order involves fixed payment amounts paid periodically, while a direct debit can be of any amount and can be casual or periodic. They also should not be confused with a continuous payment authority, where the payee collects money whenever it feels it is owed.

Direct debits are available in a number of countries, including the United Kingdom, Brazil, Germany, Italy, Netherlands, South Africa, Spain, Sweden and Switzerland. Direct debits are made under each country's rules, and are usually restricted to domestic transactions in those countries. An exception in this respect is the Single Euro Payments Area (SEPA) which allows for Euro-denominated cross-border (and domestic) direct debits since November 2010. In the United States, direct debits are processed through the Automated Clearing House network.

reference

Full Form	Category
Presidents And Academic Deans	Academic & Science
Packet Assemble-Disassemble	Academic & Science
Preauthorized Electronic Debit	Accounts and Finance
Percentage After Deviation	Accounts and Finance
Paderborn	Airport Code
Public Accounts Department	Banking
Pre-Authorized Debit	Business
Product and Application Development	Business
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Probe Answer Detail	Business
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Patience And Discipline	Community
Public Access To Defibrillators	Community
Packet Assembler Disassembler	Computer and Networking
Private Alias Directory	Computing
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Protected Areas Database	Computing
Packet Assembly Disassembly	Computing
Portable Application Description	Computing
Picture A Day	Computing
Product Assembly Document	Computing
Public Access Device	Computing
Program Associated Data	Computing
Prefetch Address	Computing
Pay After Delivery	Computing
Paddington, London	Country Specific
NearPad	Cryptocurrency
SmartPad	Cryptocurrency
Telemate Keypad Definition File	File Type
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Portable Application Descri	General
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Passive Authorization Device	General
Power Assisted Doors	General
Passenger Airbag Deactivation	General
Panoz Auto Development	General
Priorite A Droite	General
Partly Automated Driving	General
Pto Adaptor	General
Punks Against Discrimination	General
Packet Assembler Destructor	General
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Preferred Arrival Date	Governmental
Propellant Actuated Device	Governmental
Preliminary Advisory Data	Governmental
PARDI	Indian Railway Station
Partido de Acción Democrática	International
Plan Analuz sobre Drogas	International
Partido Auténtico Democrático	International
Partido de Acci? Democr?ica	International
Partido Aut?tico Democr?ico	International
Photo Activated Disinfection	Medical
Pop And Drop	Medical
Peripheral Arterial Disease	Medical
Psychiatric Advance Directives	Medical
Physician-Assisted Death	Medical
Peripheral Artery Disease	Medical
Project Appraisal Document	Messaging
Production Assurance Directorate	Military and Defence
Payload and Delivery	Military and Defence
Pipe Acquisition Disorder	Military and Defence
Patient Administration Director	Military and Defence
Positional Adjustment	Military and Defence
Precision Aircraft Direction	Military and Defence
Personnel Administration for Divisions	Military and Defence
Pre Advisory Data	Military and Defence
Personal Access Device	Networking
Paderborn, Germany	Regional
Public Access Defibrillation	Regional
Pressure Anomaly Detection	Space Science
Preliminary Advisory Data (crew Data Uplink)	Space Science
Program Approval Document	Space Science
Propellant Acquisition Device	Space Science
Pan Am Ceremonies Venue	Sports