Listen to a Business English Dialogue about Preauthorized payment
Brandon: Hi Lydia, do you know what a preauthorized payment is in business and finance?
Lydia: Yes, Brandon. A preauthorized payment is when a person or company gives permission to another party to automatically withdraw money from their account on a regular basis to pay bills or make payments.
Brandon: That’s correct. Preauthorized payments are commonly used for recurring expenses such as utility bills, subscription services, or loan repayments.
Lydia: Are there any benefits to setting up preauthorized payments?
Brandon: Yes, there are. Preauthorized payments can help ensure that bills are paid on time, eliminate the need to remember payment due dates, and avoid late fees or penalties.
Lydia: I see. So, it can help streamline the payment process and improve financial management.
Brandon: Exactly. It’s a convenient and efficient way to manage recurring expenses and maintain financial discipline.
Lydia: Are there any risks or considerations to keep in mind when setting up preauthorized payments?
Brandon: Yes, there can be. It’s essential to monitor bank account balances regularly to ensure sufficient funds are available to cover preauthorized payments and to review statements to detect any unauthorized transactions.
Lydia: I see. So, maintaining oversight and control over preauthorized payments is important to avoid overdrafts or unauthorized charges.
Brandon: Yes, that’s correct. It’s also advisable to review and update preauthorized payment arrangements periodically to ensure they align with current financial needs and obligations.
Lydia: Thanks for explaining preauthorized payments, Brandon.
Brandon: You’re welcome, Lydia. If you have any more questions, feel free to ask!