What is payment automation?

Payment automation is a system that processes payment-related data and performs actions with minimal human involvement. The drawbacks associated with manual payment processes have led to the need for payment automation. Common challenges include human error, time-consuming tasks, lack of transparency, security risks, and reduced productivity.

What is an automatic payment?

When you make an automatic payment, you’re telling your bank to transfer money on a set date and for a set amount, to pay a bill. Automatic payments are made with either a checking account or credit card, and in most cases, you’ll do this with the creditor or vendor directly, but it can also be done directly from your bank.

How do automated payments work?

Automated payments establish a digital link between a business’s payment system and its customers’ bank accounts or credit cards. Funds are transferred automatically at scheduled intervals, ensuring payments are received on time without requiring manual input. Here’s a high-level overview of the process: