Preauthorized Electronic Debit

Preauthorized Electronic Debit

A situation in which an account holder at a bank allows deductions from his/her account without explicit authorization. That is, an account holder may give a creditor authorization to take payment out of his/her bank account on a certain date or series of dates. Preauthorized electronic debits are most common and perhaps most useful for standing payments that do not fluctuate, such as loan or mortgage payments. They are known informally as electronic checks.
References in periodicals archive ?
While this is a surprising result, the survey instrument does not allow one t o distinguish between consumers who pay bills electronically through automatic, preauthorized electronic debits and those who pay bills through electronic banking packages.