- The authorization by an account holder which allows recurring payments, such as mortgage payments or insurance premiums, to be withdrawn from their account usually on a monthly basis.
take-away, charge, incur debt
Related Terms and Acronyms
- Debit — Definition,
- Another name for withdrawal of funds from your account.
- Debit Card (DC) — Acronym, Important,
- A payment card that is linked directly to a customer's bank account. Some cards require a personal identification number. Others require a customer's signature. A PIN-based or direct debit card removes a purchase price from a customer's chequing account almost immediately. A signature-based or deferred debit card has a Visa or MasterCard logo and removes the purchase price from a customer's bank account in two or three days.
- Direct Debit Request (DDR) — Acronym,
- Direct Deposit (DD) — Acronym, Important,
- An automatic deposit of wages or benefits to a customer's bank account.
- Pre-authorized Payments — Definition,
- A way to set up a monthly payment to be automatically paid from a bank account.