Gone are the days when you had to use cheques or cash to pay your rent. Now, you can use Interac e-Transfer, your credit card, and pre-authorized debit. 

In this article, we’ll explore the key benefits of using PAD to pay rent with Chexy and just how it streamlines the rental experience for both you, the tenant, and the landlord. 

What Are Pre-Authorized Debit Payments?

Pre-authorized debit is an automatic payment method that you set up once. It allows payments to be withdrawn from your bank account on a scheduled basis, typically once a month. 

The main benefit and reason why so many people love PAD is because it’s automatic. Once you set it up, you don’t need to worry about manually paying your bills. Just ensure you have enough money in your account to cover the pre-authorized monthly payments, and you’re good to go! 

Here’s Why You Should Use PAD To Pay Your Rent 

Pre-authorized debit isn’t just another payment method. There are many benefits to it, including:

You earn rewards on rent payments

Using pre-authorized debit instead of paying rent with your credit or debit card doesn’t change your ability to earn rewards on your rent payments. You can still earn cash back or points you can trade in for free flights, upgrades, hotel bookings, and more. 

The only difference with PAD is instead of using Interac e-Transfer, your rent payments will be sent as a bank transfer to your landlord. But you’re still using your credit or debit card to pay for that transfer, which still counts as an automatic recurring payment, earning you rewards. 

You can build credit on your monthly payments

By opting into Chexy’s Credit Builder, you can build credit simply by paying your rent on time each month. This is perfect for students, newcomers to Canada, or those with lower-than-average credit scores to quickly build credit on automatic payments. 

Chexy reports your rent payments to Equifax, one of Canada's two major credit bureaus. By doing so, we fill the gap in your credit history, helping you build a strong foundation for your financial future. 

It’s convenient 

With pre-authorized debit, you essentially “set it and forget it,” as you set up the PAD payment once, and your rent payments will come out of your account and be sent to your landlord on the same date every month. You no longer have to remember to pay your rent on rent day–it’s all done for you. 

For you, it’s convenient, but for your landlord or property manager, it’s a no-brainer! There’s no better way to receive consistent and on-time rental payments than PAD. 

You can better organize your finances

Paying rent with pre-authorized debit is a great way to manage and track your regular fixed expenses. You know exactly when the money is coming out of your account, so you can better plan your budget. You’ll get an email notifying you of the PAD each month when the payment is taken out of your account and sent to your landlord. 

Even if you’re busy or travelling, your rent will still be paid without worry. 

Flexibility and control

Although PAD payments are automated, you remain in control. If you ever need to stop or modify the payment (for example, when renewing the lease or moving out), you can cancel it with proper notice. 

Note that when using PAD with Chexy, you can cancel anytime since you’re still paying with your credit or debit card. You can also switch to paying your landlord via Interac e-Transfer. However, the switch can take up to 3 business days to complete, so make sure you plan ahead before your next payment. 

It’s secure

Unlike cash payments or using post-dated cheques for rent, pre-authorized debit reduces the risk of your rent payments getting lost or stolen. Not many renters use cheques or cash anymore, but if you do, PAD is a much better way to go.

Pre-authorized debit is just as secure as Interac e-Transfer, as your information is encrypted in the same way. Your payment information is sent through Canada’s Automated Clearing Settlement System, which has strict safety guidelines. 

So, what are you waiting for? Now that PAD is available with Chexy, you can pay your rent automatically and essentially never have to worry about it again, all while earning awesome rewards on one of your biggest monthly expenses. 

To set up PAD with Chexy, all you need to do is upload your lease agreement and share your new bank details with your landlord. You’ll activate the payment method, and that’s it–it’s all set up! 

Get started with Chexy today to earn rewards that you can turn into free flights, vacations, and cash back. 

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