How do automated payment services work?


Quick Answer

Automated payment services allow electronic payments from a bank account or credit card to a vendor. Payments can be for a single-entry or recurring payments.

Continue Reading

Full Answer

One-time customer-to-vendor payments typically occur with e-commerce. A shopper inputs payment information, such as an e-check or credit or debit card number, at checkout, and the site processes the information. The vendor authorizes payment, and an electronic funds transfer occurs.

Individuals can create recurring customer-to-vendor payments for regularly scheduled bills. A customer schedules automatic transfers from an account to a company on a specified billing cycle.

Finally, banks can offer online bill pay. The customer inputs the vendor's information and authorizes the bank to transfer funds to the company.

Learn more about Business Resources

Related Questions