What does automatic transfer of funds mean?

automatic transfer of funds meaning in Law Dictionary

1.when funds tend to be taken out of a merchant account with all the account holders approval. Its done regarding day and for the quantity agreed to without them being forced to do just about anything. 2. enough time a computer places funds from a single account to some other to cover overdraft.

automatic transfer of funds meaning in Business Dictionary

Banking arrangement that allows transfer of funds between an individual's two (or even more) records, under specified problems. Its usually regularly transfer funds from an interest bearing account to a non-interest bearing account to cover overdrawn amounts.