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Pre-Authorized Debit
November 1, 2015
10:21 pm
vijb
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Apologies for the newbie question - I am soon to arrive in Canada and am still getting my head around banking practices there.

According to https://www.implicity.ca/Products/ServiceFees/ Pre-Authorized Debit are free. Does that mean I could set up my credit card to be automatically paid from this account? Utility bills (though hopefully they would all go onto my credit card first)? My rent? Or is it only useful for transferring to other accounts of mine?

I assume Direct Deposit means I can have salary deposited into this account?

Thanks!

November 3, 2015
11:44 am
james1900
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vijb, welcome! Let me try to help. You can set up pre-authorized debit for credit card bills and utility bills. You do it at bill company, usually providing the bill company a VOID cheque of Implicity Account. It looks like Implicity does not charge a fee for pre-authorized debits. If you set up multiple pre-authorized debits, the draw dates can be different, depending on various billing companies.

Yes, you can deposit your salary to Implicity Account by "Direct Deposit". Again, you setup the linkage at your company. You may deposit government benefits to Implicity too.

November 3, 2015
1:23 pm
kanaka
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What province are you planning to live in?

While bill payment method is a personal preference to allow automatic debits I only do those debits for companies that don't accept credit card payments.....so for me that is Hydro and Natural Gas only. So all others are paid by credit card for the "card benefits" and then manually paid online. Some annual bills are paid online like property taxes and alarm. I stay away from auto debits...want if the mete reader makes an error and your bank account is gutted?

November 3, 2015
6:34 pm
Loonie
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We have had automated deposits and debits for many years and have never had a problem - yet.

The only issues was with one credit card which did not have a provision for automatic payment. However, that credit card company was eventually bought up by one of the major banks and we no longer have this issue.

There is a real plus to having automatic payment of credit card bills, as you never have to worry about missing a deadline, having to pay interest, and having your credit rating affected. The cost of missing a credit card payment deadline is far higher than missing any other bill. I'm sure, however, that this will only work for credit cards which are issued in Canada. Don't plan on using your existing credit card here once you have settled. You will need to build your credit rating here.

I agree with kanaka's point about using credit cards in preference to other forms of payment wherever possible in order to get the extra benefits from credit cards - usually in the form of Cashback returnsl As a newcomer, you may not yet qualify for a credit card with significant returns, but you will in due course if you pay your bills on time.

November 4, 2015
12:45 am
vijb
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I will be in Quebec, so it sounds like there might be a few bills that can't be paid with credit card.
I will try and automatically pay as many bills on credit card as possible - I am already have a plan for the fastest way of building up my credit history. I too prefer to pay automatically for everything - I can still check the amount before they are auto paid but there aren't any consequences if I forget occassionally.
So it sounds like I might be able to get away with having this as my "main" account (biggest spending can come out of it and salary can go into it) and just keep a small amount in a checking account with ATM (sorry ABM) access and free debit card purchases for the times I can not use a credit card.
Thanks for the info.

November 4, 2015
4:02 am
Loonie
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In general, Quebec has a lot of rules that are different from the rest of the country, so you will sometimes run into things that don't apply in Quebec. Some of these have to do with language issues and some with consumer protection, the latter being stronger in Quebec. And some of their legal system is still based on the Napoleonic Code, reflecting French roots. If one wishes to be a lawyer in Quebec, it literally takes an extra year of study than anywhere else, which may give you an idea of just how different it can be!

Some financial institutions don't deal with Quebecois, as you may have already discovered, but Implicity is fine with that. This happens because they don't want to or don't have the capacity to meet all the rules for operating in Quebec.

I don't think any of this should affect your ability to do pre-authorized debits, but, then, I have never lived in Quebec.

Anyway, I think you have a plan!

Quebec is a beautiful province. I hope you enjoy it. If you don't already speak French, plan on learning it, as that will enrich your life considerably. It's not essential in Montreal and Gatineau, but it does help you to appreciate what the area has to offer, especially if you will be staying there long-term.

Welcome!

November 14, 2015
4:47 pm
JustMe
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In Ontario you cannot pay Electricity, Natural gas, Property tax and Water by credit card. Well, some of those you could but you will be charged service charge.
Everything else can go through credit card, no extra charge attached.
Rent? I doubt. Why should landlord lose 2-3% for your convenience?
Quebec? It is a country within a country. They have different rules for most of the things and you will soon find that there are always some small print - 'except Quebec'.

November 16, 2015
10:36 am
Rick
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I would never authorize ANY company to access my bank account for bill payment. Run it through a credit card company if possible, or set up payments through your banks website. Once you authorize a company to access your accounts, it can be very difficult to "un-authorize" them

November 16, 2015
11:57 am
kanaka
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Rick said

I would never authorize ANY company to access my bank account for bill payment. Run it through a credit card company if possible, or set up payments through your banks website. Once you authorize a company to access your accounts, it can be very difficult to "un-authorize" them

Like Justme says.....In Ontario you cannot pay Electricity, Natural gas, Property tax and Water by credit card. That applies to BC too. I allow, for convenience, preauthorized for Gas and Electricity but "bill pay" my Property Tax. Although I do this it is not my first choice....credit card would be. Perhaps preauthorized payments should come from from one account only with a controlled (low) balance????
I would never, ever, allow a preauthorized credit card balance to be paid.

November 16, 2015
8:38 pm
Rick
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kanaka said
Like Justme says.....In Ontario you cannot pay Electricity, Natural gas, Property tax and Water by credit card. That applies to BC too. I allow, for convenience, preauthorized for Gas and Electricity but "bill pay" my Property Tax. Although I do this it is not my first choice....credit card would be. Perhaps preauthorized payments should come from from one account only with a controlled (low) balance????
I would never, ever, allow a preauthorized credit card balance to be paid.

All the bills you mention CAN be paid through most banks, but you have to set up payments manually. I pay them all thru my banks website. I would rather send them all a check than allow any of them to automatically debit my account.

November 16, 2015
9:25 pm
AltaRed
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I've had pre-authorized payment on automatic for as long as those features have been available for all the regular bills like utilities, alarm, health premiums, telecom, credit cards, etc.

I wouldn't do it for a non-regulated merchant or for slimeballs like gym memberships. At some level, one has to accept that regulated utilities and financial institutions have too much reputational risk at risk to be slimeballs.

I've never had a single issue ever...

November 18, 2015
4:09 am
vijb
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I didn't really mean this to become a discussion about whether one should use pre-authorized debits or not. But since we are off topic a little...

Is there a way to transfer (push) money to another bank account in Canada when you know the routing number/account number? I don't see it on the list of things included in this account. Not sure if just this account doesn't have it, it's called something I don't understand, or it generally isn't done in Canada?

Also, I assumed I wouldn't pay rent with a credit card, but what is the likely way I would pay rent in Montreal? In 2/3 countries I have lived in I just did a transfer to the landlords account (recurring transfer set up from my online banking). The other country I had to use cheques (checks?) Please tell me I'm not going to have to do that. Maybe the landlord would have bill pay?

Thanks again!

November 18, 2015
8:58 am
AltaRed
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Depends on the landlord. A bit corporate outfit may have some electronic means to pay rent, but most smaller outfits would not. Ask the prospective landlord.

November 18, 2015
9:59 am
kanaka
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vijb said

I didn't really mean this to become a discussion about whether one should use pre-authorized debits or not. But since we are off topic a little...

Is there a way to transfer (push) money to another bank account in Canada when you know the routing number/account number? I don't see it on the list of things included in this account. Not sure if just this account doesn't have it, it's called something I don't understand, or it generally isn't done in Canada?

Also, I assumed I wouldn't pay rent with a credit card, but what is the likely way I would pay rent in Montreal? In 2/3 countries I have lived in I just did a transfer to the landlords account (recurring transfer set up from my online banking). The other country I had to use cheques (checks?) Please tell me I'm not going to have to do that. Maybe the landlord would have bill pay?

Thanks again!

When you push money it is usually to your own account at another institution. But on my Coast Capital account there is an option to push money to another members Coast Capital account.

My daughter accepts rent by email. Believe it is a option to use via interac. I imagine there will be others here that know more about it.

November 18, 2015
10:37 am
frizun
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vijb said

I didn't really mean this to become a discussion about whether one should use pre-authorized debits or not. But since we are off topic a little...

Is there a way to transfer (push) money to another bank account in Canada when you know the routing number/account number? I don't see it on the list of things included in this account. Not sure if just this account doesn't have it, it's called something I don't understand, or it generally isn't done in Canada?

Also, I assumed I wouldn't pay rent with a credit card, but what is the likely way I would pay rent in Montreal? In 2/3 countries I have lived in I just did a transfer to the landlords account (recurring transfer set up from my online banking). The other country I had to use cheques (checks?) Please tell me I'm not going to have to do that. Maybe the landlord would have bill pay?

Thanks again!

Implicity has "me-to-me transfers" and "e-transfers" available.
Both can be done from online banking.
You may be able to pay your rent with an e-transfer,but your landlord probably has their preferred method of payment.I'm not from Quebec,so I'm not sure what is done there.

November 18, 2015
12:58 pm
Loonie
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Some landlords will request a set of post-dated cheques for the term of the lease. You will have to sort this out with your landlord ("proprietaire").
Here are the obligations of a tenant under QC law. Sorry, only in French online. It doesn't say anything about how you are to pay, only that you must pay on time. http://www.rdl.gouv.qc.ca/fr/d.....ataire.asp

Yes, it's "cheques", anywhere in Canada. "Checks" are for checklists, checks and balances, etc.

November 18, 2015
5:26 pm
Norman1
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Loonie said
...
Here are the obligations of a tenant under QC law. Sorry, only in French online. It doesn't say anything about how you are to pay, only that you must pay on time. http://www.rdl.gouv.qc.ca/fr/d.....ataire.asp

...

There is an English version at Régie du logement Québec: Main Obligations of the Tenant (English).

November 18, 2015
5:57 pm
Norman1
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vijb said
...
Is there a way to transfer (push) money to another bank account in Canada when you know the routing number/account number? I don't see it on the list of things included in this account. Not sure if just this account doesn't have it, it's called something I don't understand, or it generally isn't done in Canada?
...

Those are called wire transfers or wire payments. Wire transfers are not generally done in Canada and are usually done for transferring large amounts quickly. Their cost reflects that. To give an idea of the cost, PC Financial charges the following to send a wire transfer:

$10,000 or less: $30.00 per payment
$10,000.01 - $50,000: $50.00 per payment
Greater than $50,000: $80.00 per payment

On the receiving end, PC Financial may charge $10 for an incoming wire transfer that is from another financial institution.

Implicity Financial probably offers wire transfers as a special request too. Probably need to ask for their pricing.

Now, if that other account is a chequing account that belongs to you, then you can, instead, do an Implicity Me2Me transfer to send/push funds to the chequing account. I think their Me2Me transfers are free.

December 8, 2015
7:50 am
tony0964
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Looks like direct deposits aren't allowed into Implicity. I opened the Implicity Savings account in November 2015. I'm a Quebec resident, if that makes any difference. I assumed that since they gave me cheques I could set up direct deposit and pre-authorized withdrawals on the account.

I tried to link my Tangerine account to my Implicity Savings account using Tangerine's external link tool (which makes 2 small deposits via EFT) and I got email notification from Tangerine this morning that the deposits failed. I then phoned Implicity and they told me that one cannot make deposits into the account electronically other than by Me2Me transfer. Dommage. I would have switched my payroll direct deposit to them if I could.

December 8, 2015
8:45 pm
Norman1
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That's odd. Implicity's Service Fees page says both direct deposits and pre-authorized debits (PAD's) are free.

Maybe it's just Funds Transfer PAD's, used to move money between accounts held by the same person at different CPA member financial institutions, that are not allowed. Another kind is Personal PAD's, used by people to pay companies for goods and services.

Same with direct deposits. Payroll direct deposits may be allowed. But, not funds transfer direct deposits.

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