What are automatic bill payments?

Automatic bill payments are routine payments made from a banking, brokerage, or mutual fund account to vendors. Automatic payments are usually set up with the company receiving the payment, though it’s also possible to schedule automatic payments through a checking account’s online bill pay service.

What is an automated payment?

An automated payment is essentially what it sounds like: a payment that’s automatically sent to one of your billers from your bank account or credit card account. You can authorize an automatic bill payment to be made using your debit card, credit card, checking account, savings account or money market account.

How do automatic payments work?

They can be set up with the company receiving the payment, a bank or spending account, or sometimes a credit card. When setting up an automatic payment with a company, the customer usually provides account information and authorizes the company to withdraw a specific amount each month to cover their bill.