Meaning of the word "automatic payment" in English

What does "automatic payment" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

automatic payment

US /ˌɔː.t̬əˈmæt̬.ɪk ˈpeɪ.mənt/
UK /ˌɔː.təˈmæt.ɪk ˈpeɪ.mənt/
"automatic payment" picture

Noun

a recurring payment that is automatically deducted from a bank account or charged to a credit card on a scheduled date

Example:
I set up an automatic payment for my monthly electricity bill.
Using automatic payments helps you avoid late fees.