Define: "Pre-Authorized Check"
A premium-payment arrangement in which the policy owner authorizes the insurer to withdraw the premium payments from a bank account. This arrangement is usually required for the monthly payment mode.
OTHER USES -- "Plan for the automatic payment of premiums due through drafting by the insurer of the policyowner's preauthorized bank account. Usually, the insurer drafts this account on a monthly basis for the premium payment owed. "
More Examples of Pre-Authorized Check:
Who is using pre-authorized checking?
Thousands of companies in many different industries are using pre-authorized checking instead of traditional billing. Any business that deals with a customer on a recurring basis can use pre-authorized checking. MICR's pre-authorized checking service is priced competitively to make it cost-effective for companies of any size. There are 16 billion recurring payments each year (source: American Bankers newspaper, 8/13/97). Your company could be one of the many receiving them who should be using pre-authorized checking.
Why use pre-authorized checking?
Pre-authorized checking is on the rise among U.S. businesses today. It represents significant benefits to both companies and consumers that guarantees its continuing growth.
What are the benefits of using pre-authorized checking?
There are many, many benefits to using this service. You receive payments on the day they're due and your accounts receivable are always zero, which means that you can predict your cash flow accurately. Due to the eliminated paperwork and logistics, your administrative costs are also lower. Plus, using this service inspires loyalty among your customers.
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