What is a Memo Debit?

A memo debit is a pending reduction in the cash balance of a bank account, which is a debit transaction. The bank has not yet completely processed the transaction; once it has done so (typically during end-of-day processing), the memo debit designation is replaced by a regular debit transaction, and the cash balance in the bank account is reduced by the amount of the memo debit.

Example of a Memo Debit

A memo debit could be a pending outgoing electronic payment, a debit card transaction, a fee to issue new checks, an interest payment on a loan, or a not sufficient funds fee.