1. AuthorizeGetting started with Direct Payment is simple. Just authorize businesses that send you bills in writing or online to debit regularly scheduled payments from your checking or savings account, and provide them with your account information. Authorization forms vary slightly with each company that sends you bills, but the process is the same.  2. TestThe company may perform a test entry by sending the checking or savings account information you provided, but no dollar amount, to your financial institution. This entry is called a pre-notification, and is done to make certain that your account numbers have been recorded correctly. 3. NoticeIf the amount of the monthly payment varies, you will be notified of the payment amount at least 10 days prior to the payment date. If the date of the debit varies from the agreed upon date or a date is not specified in the authorization, a notice must be sent to you at least seven days prior to the debit date. This way, you always know how much and when your account will be debited. 4. ProcessYour billing company processes the payment electronically. In banking terms, this is known as an ACH transaction. 5. PostYour bank debits your account and credits the account of your billing company. 6. ConfirmYour monthly account statement from your financial institution will include detailed reports of your Direct Payment transactions. |
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