1. Paperless computerized system enabling funds to be debited, credited, or transferred to a provider’s financial institution, eliminating the need for personal handling of checks (e.g., from an insurance company’s account directly to the accounts receivable of the physician’s medical practice). Some insurance companies are using this system for Medicaid and Medicare payments. 2. Simple method of paying monthly insurance premiums in which the insured prearranges with his or her bank to automatically transfer payments to the insurance company’s account from his or her checking account. See also automatic bill payment and preauthorized payment . Also called automatic bill payment, bank check plan, check-o-matic, check deposit billing, preauthorized checking , or preauthorized payment . See also deposit-only bank accounts .