Preauthorized transfer
In US Regulation E, an electronic transfer authorised in advance to recur at substantially regular intervals.
Under US Regulation E, a preauthorized electronic fund transfer is one authorised in advance to recur at substantially regular intervals. Preauthorized transfers from a consumer's account may be authorised only by a writing signed or similarly authenticated by the consumer, who must receive a copy, and the consumer has a right to stop payment. For an agent that pays bills, the authorisation itself remains the consumer's, in the form the rule requires.
Agent Minute explains this term on 17 March 2027.
Related terms
Stop-payment orderA consumer's instruction to their bank not to make a scheduled preauthorized debit from their account.Direct debitA payment collected by the payee from the payer's account on the basis of the payer's prior consent.MandateA checkable statement of what an agent may do for a principal: which action, how much, with whom and until when.Unauthorized electronic fund transferUnder US Regulation E, a transfer started by someone without actual authority, from which the consumer gets no benefit.