Mass Payment

Categories: Banking

When we make a “mass payment,” it basically means we’re using one transaction to make a bunch of payments to a bunch of recipients all at once.

For example, let’s say we own a restaurant with 50 employees. Instead of wasting a bunch of time every week sending out checks and payment cards, or processing a ton of direct deposits, we can just make a spreadsheet with what we owe everyone on it, upload it to our mass payment site, and boom, we’re done. The site sends every employee a link, and when they click on it, they can choose how they want their money.

Account deposit? No problem. Prepaid debit card? Sure. Actual paper check? A little old school, but all right. All we the employer have to do is pay a fee for the service…and figure out what to do with all our newfound free time.

Find other enlightening terms in Shmoop Finance Genius Bar(f)