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Atlanta Fed opines earmarking with programmable payments can help businesses bring efficiency to managing payroll, vendor payments, and escrow accounts through automated budgeting, real-time visibility into cash flows and customized workflows with flexible rules

August 6, 2025 //  by Finnovate

At its core, earmarking just means setting money aside for a specific purpose—like rent, payroll, or taxes—so it’s only used for that. It’s a simple concept, but when combined with automation, it could be the budgeting upgrade many people and businesses have been waiting for. That’s where programmable payments come in. These are payments that happen automatically based on rules you set. Through banking apps, digital wallets, or budgeting platforms, consumers choose or create spending categories and assign rules—like percentages, spending limits, or triggers.  It’s like having a personal money assistant organizing your finances, paying your bills, and keeping you on budget without you having to think about it. For businesses, this brings new efficiency to managing payroll, vendor payments, and escrow accounts. The upside of earmarking with programmable payments is clear: automation takes the work out of budgeting, real-time visibility helps track your money, and flexible rules let you customize how it all works. It’s also useful in more regulated settings like distributing aid or managing shared accounts because it adds accountability. Earmarking with programmable payments is a smart, modern take on a tried-and-true budgeting technique. Used intentionally, it can bring clarity, control, and purpose to the way money flows. In a complex financial world, that’s something both individuals and experts can benefit from.

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Previous Post: « Embedded payments are seeing rising adoption in the parking sector through AI-recognition tech that lets customers just drive in and scan a QR code to enter their credit card information the first time they park, with automatic vehicle identification and charges applied on subsequent trips

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