Bank Debit

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Bank Debit

A reduction in the amount of one's bank account. While this technically could apply to any withdrawal, the term is used especially to refer automatic withdrawals made regularly with the account holder's permission. For example, one may allow for bank debits to pay one's car insurance bill each month. The account holder must explicitly authorize bank debits in order to prevent abuse.
References in periodicals archive ?
The Service is trying to encourage taxpayers to use direct bank debits on their installment agreements, because the default rate is much lower than for other agreements.
Unlike other cash management technologies, automatic bank debits are used as frequently in smaller governments as in larger governments.
In the near future, it is possible that governments will increase their acceptance of the Internet and automatic bank debits as methods of payment.
The GFOA/JPMorgan Chase survey found that many state and local governments accept payments via automatic bank debit, the Internet, and the telephone.
Soon, Payseal will also be able to handle a variety of other payment modes such as debit & smart cards and direct bank debits.
The Gateway offers the flexibility of multiple payment modes including credit, debit &smart cards, direct bank debits and e-cheques.
Automatic bank debits are more commonly known as Electronic Funds Transfers ("EFT"), an automated process of transferring money by computer using the facilities of the Automated Clearing House ("ACH"), an independent entity closely associated with the Federal Reserve Bank.