Remote disbursement

Remote disbursement involves the use of check payments that are drawn on remote bank locations, thereby lengthening the duration of the disbursement float. At its most sophisticated level of usage, a company can have multiple remote bank locations set up around the country, and pay customers using bank accounts located the furthest from them.

The usefulness of remote disbursement has declined over time, as central banks have gradually driven down clearing times, with a particular emphasis on those regions where clearing intervals are unusually long.