How to Authorize Third-Party Direct Debits

Take the hassle out of paying bills by authorizing a third party like a health club, credit union, or insurance agency to deduct payments directly from your eligible Fidelity brokerage account.

Why would I use third-party direct debit?

Direct debit allows a third-party vendor to withdraw money from your Fidelity brokerage account.  You can also authorize software programs, like Quicken, to access your account to pay bills. It's a smart solution for keeping up with recurring payments because you don't have to track due dates and dollar amounts.

What do I need to know?

You'll need to have a nonretirement brokerage or cash management account because the payment is deducted from your cash balance. You can check your account's cash balance from your Portfolio page; select Manage Cash, Manage Money & Payments, under Available to Withdraw.

Since you set up this feature with a third party, you don't need to complete any Fidelity forms. However, you'll need to fill out the vendor or third party's authorization forms. You will need to provide the vendor with:

Because we don't initiate the direct debit, you won't get a confirmation from Fidelity when you've set up the feature. However, you may receive a confirmation from the third party. If you do, review it to verify that your Fidelity account information is listed correctly.

Note: 529 college savings plans, workplace savings plans, Portfolio Advisory Services accounts, health savings accounts, and mutual fund accounts are not eligible for this feature.

What to expect

Funds are debited from your account on the date established by your third party, so please make sure the money will be available. Direct debits are listed as pre-authorized in your account history. Some vendors use electronic debit procedures and others use a paper draft. When the vendor uses electronic debit, the account's history shows a debit with the vendor's full or abbreviated name, similar to what you'd see if you used a debit card at a store. If the vendor uses paper drafts, the account's history shows a check paid without the third-party name listed.