Automatic Transfer Of Funds

This term describes a standing banking arrangement where funds from one account are regularly transferred to another account.

This could represent an automatic transfer of $5 from your checking account to your savings account every Friday. Or it could be a $20 allowance transferred from your mom’s checking account to your checking account every two weeks. Or it could be the $1.2 million transferred every pay period into the payroll account of a medium-sized industrial firm.

Also known as ATS, this arrangement is regular and periodic.