Preauthorized payment

(redirected from Pre-Authorized Payments)

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 ?

o Earn additional points by signing up for pre-authorized payments and e-bill, or adding services to their account including Optik TV or adding additional subscribers

TELUS, CIBC partner on rewards credit card

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).

Texas Trust Grew Lending by 24% in 2012, Added 13,231 Members

Ten million times a day, Canadians withdraw cash from banking machines and use cheques, debit cards and pre-authorized payments to make payments that result in one deposit-taking financial institution owing money to another.

High speed money

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.

Texas Trust Launches SwitchAgent Concierge Service Reducing Pain of Switching Banks