- An agreement giving authorization to various companies or lenders to make specified withdrawals from a person's bank account to make payments towards bills or loans. For example, regular monthly payments such as car or mortgage payments can be set up to automatically be withdrawn from your account each month or as specified in your authorization agreement.
programmed, computerized, electronic fund transfer
Related Terms and Acronyms
- Account Agreement — Definition,
- An agreement that you sign and which lists your rights and responsibilities and the bank's rights and responsibilities for the bank account.
- Bill Presentment — Definition,
- An online system that allows customers to receive and view the bill on a computer, and then pay the bill electronically. Users can pay their bills immediately and the money is transferred from the account.
- Billing Cycle — Definition,
- The number of days between the last statement date and the current statement date.
- Pre-authorized Payments — Definition,
- A way to set up a monthly payment to be automatically paid from a bank account.
- Service Charge (SC) — Acronym,
➥ Bank account transaction code.
- Fees charged to customers for specific services or as a penalty for not meeting certain requirements such as insufficient funds in a chequing account.