What Is a Memo Debit on My Bank Statement?

What Is a Memo Debit on My Bank Statement? thumbnail
Reconciling bank statements can be a chore.

Bank statements can be confusing and hard to decipher. Credits and debits might appear with little to no explanation and they often baffle account holders, causing hours of unnecessary reconciliation and frustration.

  1. Jargon

    • Statements regularly contain bank jargon. To reconcile statements, one must first comprehend the universal terms they contain.

    Credit vs. Debit

    • Two of the most commonly used terms are "credit" and "debit." A credit indicates money coming into an account, such as from a deposit or a purchase refund. Money leaving an account is a debit.

    Type of Debits

    • Debits, also known as memo debits, are the most frequent types of transactions shown on statements. Debits can be in-person or ATM withdrawals, transfers, electronic payments, checks and check card purchases.

    Unauthorized Debits

    • Unauthorized debits sometimes appear on statements. Customers can call the bank within a reasonable amount of time to find out how to dispute them.

    Missing Debits

    • Frequently, account holders notice that debit transactions they made are missing from their statements. Debits can sometimes be delayed, and clients should not be alarmed by their omission. The missing transactions usually appear on the next monthly statement, and the account can be reconciled as usual.

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  • Photo Credit Image by Flickr.com, courtesy of John Patrick Robichaud

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