The real question: Not "which is cheapest" — but which one fits your billing rhythm, client type, and tolerance for chasing payments. They each have a failure mode. Pick the one whose failure mode you can live with.

Billing Lane Chooser

Answer these questions to find your best billing setup

B2B = companies, professionals, clinics. B2C = individuals paying personally.
NSF on PAD = bank returns the debit. Declined card = you're notified immediately. Ignored invoice = you have to chase.
💳 Card on File — Recurring Charge

Your best fit: Card on File (Recurring Credit/Debit Charge)

Your billing pattern — fixed timing, consumer or small-business clients, and low tolerance for chasing — is exactly what card-on-file recurring billing is designed for. You charge the card automatically on billing day. If it declines, you're notified immediately and can retry or contact the client.

Best processors:

  • Stripe Billing — best ecosystem, smart retries, dunning emails, webhook notifications. Works with QBO, Xero, FreshBooks via Zapier or native integrations. 2.9% + $0.30/transaction.
  • Helcim Recurring — Canadian-owned, interchange-plus rates (typically 1.5–1.8% blended), hosted payment pages for initial card capture. Lower cost at volume.
  • Square Subscriptions — simple, no monthly fee. Works well if you already use Square for other billing. Limited customization.
Chargeback risk: Cardholders can dispute charges. Keep signed service agreements and billing authorization records. For clients who regularly charge back, move them to PAD or invoicing.

🏦 Pre-Authorized Debit (PAD)

Your best fit: Pre-Authorized Debit

PAD pulls funds directly from a client's bank account on a scheduled date. Lower processing fees than cards (typically 0.5–1%), and no card expiry to chase. Best for stable, trusted clients — especially B2B where the same amount goes out monthly.

Best processors:

  • Rotessa — Canadian PAD specialist. Simple recurring debit setup, CSV import, $0.25–$0.99/transaction flat. No percentage fee. Integrates with QBO and Xero. Best option for most service businesses.
  • Paysimple — handles both ACH (US) and EFT (Canada). Good for cross-border billing or if you have clients in both countries.
  • PaymentEvolution — Canadian, integrates with payroll. Better if your billing overlaps with payroll management for clients.
  • Helcim EFT — Canadian bank debit alongside card processing. Good if you want one platform for everything.
⚠️ PAD requires a signed authorization agreement from each client before you can debit their account. Payments Canada rules require this — verbal authorization isn't enough. Get it in writing (digital signature on a PDF is fine) before you initiate any debit.

⚠️ NSF risk is real: If a client's account doesn't have funds, the debit bounces — often 3–5 business days later. You may also incur an NSF fee ($5–$15) from your processor. For clients with erratic cash flow, use invoicing or card on file instead.
📧 Emailed Invoice

Your best fit: Emailed Invoice with Online Pay

For irregular billing, large amounts, or B2B clients who have their own AP processes, emailed invoices with a "Pay Now" link are often the most practical option. The client controls when payment happens — which is fine when amounts vary or timing is unpredictable.

Best options:

  • QuickBooks Online invoicing — built-in, integrates directly with your books. Clients pay via card or bank transfer. QBO tracks payment status automatically.
  • FreshBooks — strong invoicing UX, automatic payment reminders, client portal. Good if FreshBooks is already your accounting tool.
  • Stripe Invoicing — programmable, clean, supports partial payments. Best if your clients are tech-comfortable or you need automation.
  • Wave Invoicing — free for invoicing. Processing fees apply on payments. Good for low volume.
Invoices get ignored. Without automated reminders, net-30 invoices regularly go 45–60 days. Turn on automatic reminder sequences (most platforms send at 7, 14, 30 days overdue). For B2C clients especially, expect some percentage to simply not pay without follow-up.
🔀 Hybrid Billing

Your best fit: Hybrid — Card on File for Regular + Invoice for Overages

Your billing pattern is mixed: some charges are predictable, others aren't. The most effective setup is to keep a card on file for recurring baseline charges (monthly retainer, minimum billing), and use invoicing for overages, project work, or one-offs.

How to set it up:

  1. Collect card on file at client onboarding (Stripe or Helcim hosted payment page)
  2. Auto-charge the fixed monthly retainer amount on the same date each month
  3. For overages or irregular work, email a separate invoice — ideally with the card on file pre-selected as payment method
  4. Stripe supports charging a saved card from an invoice — clients just click confirm
Keep authorization records for both methods. The card authorization covers auto-charges. Invoices for overages should reference the original service agreement to avoid disputes.

Card on File: How It Works in Canada

Card-on-file billing stores a tokenized version of your client's card. You charge it on a schedule without the client having to enter their card each time. The card number is never stored on your server — it lives in the processor's vault (Stripe, Helcim, etc.).

✅ Pros
  • Immediate payment — no waiting
  • Automatic retries on decline
  • Works for any billing frequency
  • Client doesn't have to do anything after initial setup
  • Integrates with most accounting software
❌ Cons
  • Card expiry — you have to update cards (updater tools help)
  • Chargeback risk if authorization isn't documented
  • Credit card fees (2.5–3.5%) vs PAD (0.5–1%)
  • Clients may cancel or freeze cards

Canadian processors: Stripe Helcim Square Moneris

Stripe's automatic card updater (included) refreshes expired card details automatically for major issuers. Helcim has a similar feature. This dramatically reduces billing failures from expired cards.

Pre-Authorized Debit (PAD): The Canadian Rules

PAD is governed by Payments Canada Rule H1. It's not as simple as just debiting someone's bank account. You need a signed PAD agreement that specifies:

  • The exact amount (or authorization to debit variable amounts)
  • The billing frequency and first debit date
  • The client's right to cancel with 30 days' notice
  • Your organization's name and contact information

Without a valid PAD agreement, a client can dispute the debit and get a full refund from their bank — even months after the fact. Processors like Rotessa provide PAD agreement templates.

✅ Pros
  • Lower fees than credit cards (often flat $0.25–$0.99/txn)
  • No card expiry issues
  • Works for large amounts (no card limits)
  • Better for B2B clients with accounts payable
  • Client doesn't need a credit card
❌ Cons
  • NSF returns — usually 3–5 days after debit
  • Requires signed authorization before first debit
  • Can't use for one-off charges without new agreement
  • Returns attract NSF fees from processor
  • Client has 90 days to dispute unauthorized debits

Canadian PAD processors: Rotessa Helcim EFT Paysimple PaymentEvolution Stripe (ACH/EFT)

Emailed Invoice: The Reality of Getting Paid

Most Canadian small businesses start here. It's the path of least resistance — send an invoice, hope it gets paid. The problem is that hope is not a collections strategy.

✅ Pros
  • Works for any billing situation, no setup required
  • Client chooses payment method
  • Matches B2B AP processes naturally
  • Easy to adjust amount each time
❌ Cons
  • Invoices get ignored — routinely
  • Cash flow unpredictability
  • Requires active follow-up to collect
  • Clients can delay payment indefinitely

Best integrations: QuickBooks Online FreshBooks Xero Stripe Invoicing Wave

The single biggest improvement you can make to invoice collection: turn on automated payment reminders. QBO, FreshBooks, and Stripe all support configurable reminder sequences. Set one for 3 days before due, the day of, and 7 and 14 days after. This alone typically cuts average days-outstanding by 30–40%.

Which Software Stack Pairs With What

Your Software Card on File PAD Invoicing
QuickBooks Online Stripe or Helcim via integration Rotessa (QBO sync) QBO built-in (best native option)
Xero Stripe (native Xero app) Rotessa (Xero sync) Xero + Stripe Invoicing
FreshBooks FreshBooks Retainer feature Limited — use separate PAD tool FreshBooks built-in (strong)
Wave Wave Payments recurring Not supported natively Wave built-in (free)
Square Square Subscriptions Not supported Square Invoices
Manual / Spreadsheet Stripe directly (API or dashboard) Rotessa standalone Stripe Invoicing standalone

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