Explore commonly used personal finance terms.
An authorized payment is a transaction that has been pre-approved by the account holder, typically used for recurring payments like utility bills or loan payments. Authorized payments allow businesses and service providers to deduct payments directly from a bank account or credit card without requiring repeated approval. This type of payment simplifies bill management for account holders, ensuring timely payments and reducing the risk of late fees, while also providing service providers with consistent, reliable payment schedules.
