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. For example, 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, and so forth.

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