Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
50% - Moderately

Automatic Payment

Synonyms:computerized, electronic fund transfer, programmed
Filed Under: financial-banking, mortgages
Tags: bank account, banking, mortgage

Definition of automatic payment

automatic payment
1. 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 For example, regular monthly payments such as car or mortgage payments can be set up to automatically be withdrawn from your account each month or as specified in your authorization agreement.

Related Terms and Acronyms:

  • account agreement   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   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   The number of days between the last statement date and the current statement date.
  • pre-authorized payments   A way to set up a monthly payment to be automatically paid from a bank account.
  • service charge (SC)   Fees charged to customers for specific services or as a penalty for not meeting certain requirements such as insufficient funds in a chequing account.
      ➥  Bank account transaction code.

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