- Monthly payments that are automatically taken from a person's account with approval or authorization from that person.
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.
- Automatic Payment — Definition,
- An arrangement that authorizes periodic withdrawals to be made from a chequing or savings account to pay bills, usually regular monthly payments such as for rent or mortgages.
- Billing Cycle — Definition,
- The number of days between the last statement date and the current statement date.
- Direct Debit (DD) — Acronym, Important,
- A means of authorizing recurring payments (e.g., mortgage payments, insurance premiums) to be drawn on an account.
- Insufficient Funds (ISF) — Acronym,
- When funds are not enough to satisfy the payment of a cheque or draft made on that account; also known as non-sufficient funds (NSF).
- Online Banking (OLB) — Acronym, Important,
- Access by personal computer or terminal to bank information, accounts and certain transactions via the financial institution's web site on the Internet. Also known as Internet banking.
- Online Bill Payment — Definition,
- A service offered by online banks, usually for a small monthly fee, that relieves consumers from having to write cheques and lick stamps to pay their monthly bills. Online bill payment systems allow people to enter the names of their creditors and the numbers of their utility accounts and pay virtually all routine bills.
- 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.