Automatic Bill Payment

A checkless system for paying recurring bills with one authorization statement to a financial institution. For example, the customer would only have to provide one authorization form/letter/document to pay the cable bill each month. The necessary debits and credits are made through an Automated Clearing House (ACH).

An automated system generally found in home banking where an account holder has the ability to pay recurring bills. For example, the member will enter the payment information of the merchant into the bill payment system, and the system sends a payment either monthly or a one-time payment. The financial institution sends either a debit or a paper check depending upon the merchant’s capabilities.