Origin of autopay
Words nearby autopay
What does autopay mean in budgeting and savings?
Autopay, short for automatic payment, is a computerized service that automatically deducts an owed recurring payment from an individual’s account (usually a checking, savings, or money market account), in time to meet a payment due date.
Autopay can usually be set up directly with the company receiving payment or through the payment service of one’s bank.
Autopay can be set up to make many types of payments, including recurring payments for a bank loan, a credit card, or utility bill, etc. Using autopay for recurring bills ensures timely payments and the avoidance of late fees.
Examples of autopay in a sentence
“We then authorize our credit card company for autopay transferring funds from our checking account each month to pay our credit card bill.”
—Wayne Dunlap, Plan Your Escape: Secrets of Traveling the World for Less Than the Cost of Living at Home, page 110, Author House: 2011
“Autopay means your bank or credit union send[s] payments directly to your creditors. Automating your financial life through direct deposit and autopay can simplify things and save you a lot of money in the long run.”
—Kenneth O. Doyle, Ph.D., Financial Literacy for Generation Z, page 40, Praeger: 2019
“The main reason consumers use autopay is to make sure bills are paid on time. That is vital to their credit scores when it comes to debts like car loans, credit card balances and mortgages, but most other on-time payments are not recorded.”
—”Five reasons to beware of autopaying bills” Reuters. March 12, 2015