Recurring Payment

Regularly scheduled payment of a consumer debt, such as an installment loan, which is payable monthly, a Mortgage which is payable monthly or biweekly, or an insurance premium. Benefits payments to individuals, such as Social Security payments or pension benefits, also are recurring payments. Recurring payments, which change little in dollar amount, are processible through the Automated Clearing House system. A majority of Social Security payments are deposited in this fashion. See also Direct Deposit; Preauthorized Payment.