Automatic Withdrawal
Posted in Banking
define: Automatic Withdrawal
With this service, also known as direct payment, the account holder can pay bills and set up other periodic transactions to ensure financial obligations will not be late due to neglect. After setting up an automatic withdrawal, the amount due is automatically deducted from the account on predetermined dates: monthly, quarterly or annually. It is up to the account holder to maintain adequate funds in the account and to keep track of the dates for automatic withdrawals in order to avoid overdraft fees and an inadequate account balance.
This definition is filed under Banking.
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