What is Automatic Transfer Service

An automatic transfer service (ATS) is a type of service offered by banks to customers in order to combine a standard checking account and a standard savings account. This service enables clients to cover outstanding balances in their checking accounts through extracting funds from their savings account.

Why offer Automated Transfer Services

An ATS is often considered a specialist type of bank account that acts as a deposit account. Through ATS, customers are able to integrate two bank accounts – checking and savings – in order to cover excessive funds or outstanding checks. Automated transfer service is a service that is offered by most banking institutions so as to provide their customers with a certain amount of flexibility.  It offers an economic means by which money is automatically transferred between two accounts as it acts as an agreement to integrate the accounts.

The main benefit of automated transfer services is that it allows same-day transfer of funds between the integrated accounts. The instantaneous transfer of money ensures that the minimum balance is maintained within the checking account and that checks are not bounced in the event that the checking account does not have sufficient funds.

Another advantage of automated transfer service is that it enables clients to view a clear statement of the details of funds being transferred between accounts. This reduces risks of error and individuals are able to contest any payment which they have not cleared.

Banks and other financial institutions across the globe offer ATS to their customers as it provides them certain flexibility. To offer this service, banks are required to obtain a banking license from the financial regulatory body in their chosen jurisdiction.