AUTOMATIC WITHDRAWAL Meaning and
Definition
-
Automatic withdrawal refers to a financial arrangement in which funds are withdrawn from one's bank account or credit card automatically on a predetermined schedule. This can occur for various purposes such as bill payments, loan repayments, subscriptions, or other recurring expenses. The process is initiated by the payee or service provider with prior authorization from the account holder through a signed agreement or electronic consent.
With automatic withdrawal, the specific amount agreed upon is deducted from the account without the need for manual intervention or constant approval. The frequency of these withdrawals can range from monthly to weekly, depending on the terms agreed upon. This method ensures timely and convenient payments, eliminating the possibility of late fees or missed deadlines.
Automatic withdrawal provides several benefits to both consumers and service providers. For consumers, it simplifies bill management, saving time and reducing the risk of forgetting to pay bills. It also provides convenience and peace of mind, as payments are automatically processed even if the account holder is unable to physically make the payment. Service providers benefit from reliable and consistent payments, reducing the hassle of administrative tasks and improving cash flow management.
It is important for account holders to regularly monitor their bank transactions and statements to ensure the accuracy of automatic withdrawals, as errors or unauthorized deductions may occur.
Etymology of AUTOMATIC WITHDRAWAL
The word "automatic withdrawal" is a combination of two terms: "automatic" and "withdrawal".
The term "automatic" derives from the Greek word "automatos", meaning "self-moving" or "self-acting". It combines the prefix "auto-" meaning "self" and "matos", which comes from the verb "mēnō", meaning "to stay" or "to remain".
The word "withdrawal" comes from the Old Norse word "withdraugr", which means "a drawing back or away". It combines the prefix "with-" meaning "back" or "away" and "draugr", which derives from the verb "draga", meaning "to draw" or "to pull".
When these terms are combined, "automatic withdrawal" refers to a process or action by which money is drawn or pulled out from an account without manual intervention or immediate authorization.
