What is Clearing?
Check that the installment is when the payment is a check, either paper or electronic, processed by the bank. Depending on the size of the financial institution, the process can be deleted. Finally, the payment is made from the customer's bank account at the time when the check is deleted.
Before the check can be cleaned with any financial institution, the customer must have a check -up account. Funds are drawn from this account. If the amount of money required exceeds the account size, the check for insufficient funds may be returned and the customer may be charged for overdraft purposes. Some banks offer overdraft protection that allows checks to be cleaned even if the funds are not available. Overdraft protection usually comes with the limits and fees associated with the service. These fees are the largest part of the fees for the Services of Deposit Accounts for Large Banks annually. The bank relies even more on the revenue of fees if revenue is from other financial products such as JSOU mortgages, under pressure. Customers have the biggest problems with checking check during the months of November, December and January. During this time period, a high percentage of these fees are evaluated because consumers tend to spend more money during the holidays.
In some regions, the bank must mark the approach that attracts for CLEADING. For example, one method is to process controls as they come, regardless of the control value. Another method that is widespread among large banks is to process controls in a high way in low way. In this process, the control with the highest value is processed before any of the smaller checks.
If the bank receives several checks on the same day and the total amount of combined checks exceeds the amount available on the customer's bank account, which can cause confusion in the account. A bank that uses high to low control cleaning will first process the largest accountsRole follows smaller checks in descending order. This increases the likelihood that after the first major inspection is processed, the pumped -storage account is pumped, which will lead to another overdraft fee for the customer, because each of the smaller checks will be processed.
Customers have access to a different form of cleaning using a debit card. The debit card works similarly to the check, with the exception of transactions, they are usually processed at the time of the transaction that could reduce overdraft fees. In the transaction between the check account, the funds are loaded when the inspection is received by a bank that could be days after the purchase.