Definition – What does Direct Payment mean?
Direct Payment is a form of electronic bill payment for consumers that enable them to pay their bills over the internet through their banks. The transaction occurs in the form of a money transfer from a user’s account arranged either through an online bank or a brick and mortar financial institutions that provide users with an account and rounding number for the party they wish to make digital payments to.
Glossary Web explains Direct Payment
Mostly, Direct Payment is used by customers who have ongoing bills that allow them to authorize regular monthly withdrawals by companies as payment for those bills. It is made in a secure web transaction environment and can be made by providing a routing number of the bank, enabling the transaction to be conducted nearly in real-time. With the help of this system, the user can easily process their payment immediately even at the end of the banking day.