When that happens, the payment is automatically released from your bank account on the payment due date. This withdrawal is easy to track because it shows up on your monthly bank statement. Direct Payment can be used for bills that are the same amount all the time and for payments that vary from month to month. Direct Payment is often used for mortgages, car loans, insurance premiums, health club dues, cable TV, utility payments, investments and credit card payments. Many people also use Direct Payment for tuition and charitable donations.
Consumers save time, hassle and money.
Most people spend the equivalent of about three days a year paying their bills. Consumers also ensure that their payments are made confidentially and on time. Since Direct Payment is more efficient than checks, businesses and the nation's payment system benefit because they can operate more effectively with Direct Payment. Very often Direct Payment does not cost consumers anything. In fact, it saves consumers time and money in postage, checks and late fees.