This term describes the movement of a check from a certain bank in which it was deposited back to the institution on which it was written. This also applies to the movement of the face amounts in the opposite direction. Also known as “clearing”, this usually results in a credit to the account at the bank where the deposit was made, while an equal debit also occurs to the account at the bank on which the check was drawn.

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Related ChexSystems Banking Information:

1. Check Clearing – Understanding How Checks Are Processed
2. Checking Account Fraud — Types of Check Fraud
3. Check Hold
4. Cashiers Check
5. Check Cashing Fee

Tagged as: check clearing