- The number of days that a financial institution can legally hold uncollected funds before crediting a customer's account balance and allowing the use of those funds.
hold funds, delay, waiting to clear
Related Terms and Acronyms
- Cheque (CK) — Acronym,
➥ Bank account transaction code.
- A written order for payment of a certain amount of money.
- Cheque Clearing — Definition,
- When you write a cheque to a person or a company, the cheque is typically cashed when deposited into a bank account. Your chequing account is then debited for the amount of the cheque and the cheque is said to have "cleared."
- Direct Cheque Printers — Definition,
- These operations offer lower prices and greater selection than chequing customers get through their banks. Many of these printers are also printing cheques for banks that use outside printers. Customers must supply most direct cheque companies with a voided cheque or a reorder form from a current batch of cheques and a deposit slip. Names and addresses must match with information on file at the account holder's bank.
- Float — Definition,
- The amount of time the bank takes to clear or reject a cheque for payment
- The time at which funds are debited from the issuer's account.