Automatic Payments : When used synonymously with automatic payment plans, automatic bank drafts are a convenient and paperless means of paying bills whereby funds are debited from one account and credited to another.
ACH System : The Automated Clearing House computerized system processes electronic debit and credit transactions for financial institutions with the assistance of the Federal Reserve. Through the ACH system, funds are moved quickly from one account to another electronically with no paperwork.
Terminology : A business wanting to accept automatic bank drafts for ongoing regular payments or pay bills using automatic bank drafts can set up the process with the appropriate financial institution. Consumers offered this option to pay bills can then authorize the process and begin regular bank drafts to pay recurring bills.   _{Your Comment}