Preauthorized payment

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Also found in: Acronyms.

Preauthorized payment

Accelerating cash inflows by directly charging a customer's bank account with permission.

Preauthorized Payment

Any agreement between a bank and an account holder whereby the account holder gives the bank permission to automatically debit the account by a certain amount every month. The amount may go to the bank to pay a standing fee, but most often goes to a third party. For example, a customer may set up a pre-authorized payment plan to pay his internet bill each month. See also: Direct Debit, Standing Order.
References in periodicals archive ?
Clients then simply download the transactions into their existing AutoScribe software on a daily basis, and process them along with their other AutoScribe pre-authorized payment transactions.
Rebates will be processed by a manual transaction rebate method utilizing a pre-authorized payment system but Accsys intends to develop an electronic transfer method utilizing direct debit systems through a financial institution to process rebates.
It also launched SwitchAgent, an automated service that makes it easier for consumers who open a Texas Trust account to painlessly switch pre-authorized payments and deposits from their old bank account(s).
SwitchAgent is the first automated service of its kind, developed to make it easier for consumers to transfer pre-authorized payments and deposits, such as gym memberships, car loans, mortgages, utility bills, and Social Security and payroll deposits, from their old bank account to their new Texas Trust account.