Pre-authorized payment can do all of the following for customers except
A)increase disbursement float
B)reduce processing costs
C)eliminate mail costs
D)eliminate the possibility of skipping a payment

Question

Quizplus · Accepted Answer

Pre-authorized payments can reduce processing costs by eliminating the need for manual processing and eliminate mail costs by not requiring physical mail. They can also eliminate the possibility of skipping a payment by automating payments. However, pre-authorized payments do not increase disbursement float, as payments are made automatically on the scheduled date.

Pre-Authorized Payment Can Do All of the Following for Customers