What Is A Counter Credit? (And Why Is It On My Bank Statement?)

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There are a bewildering number of details to be found on your bank statement, as you know if you have ever even glanced at one.

There is a lot more information available for you to read in addition to understanding how much money you have in your account.

Even if you do not make many transactions in a specific period, you might realize that your bank statement still has the potential to be a few pages in length. On the statement, you might also come across certain acronyms or terminology that you are unfamiliar with.

One of the terms that you may be unfamiliar with is the phrase ‘counter credit’. What does this phrase mean, and why is it on your bank statement?

In this article, we will take a look into the phrase counter credit, as well as some other banking terms that you may be unsure about.

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What is a Counter Credit? And Why is it on my bank statement? — Photo by Firmbee.com on Unsplash

Counter Credit: What You Need to Know

So what is a counter credit on your bank statement?

A counter credit just means that you made an in-person, over-the-counter bank deposit. You’ve put credit, or a deposit, into your account in a face-to-face transaction with an accountant at the bank.

If you see this on your Bank of America statement, or any bank’s statement that is what it means.

Due to the rise of new, more practical deposit methods like postal mail, ATMs, and mobile deposit, you don’t have to rely on an in-person, counter deposit.

You can actually deposit a check with your smartphone, mobile banking app from home if you want! However, that type of deposit will not show as a counter credit on your bank statement.

But, while many people will prefer to use online banking to transfer their money nowadays, counter credit is still a viable option to use.

A person can make a counter deposit at their closest branch, providing that they have an account with a major bank like Bank of America, or a local bank.

It is really to make a deposit in person, which makes it simple for the recipient to move the funds to their own account. They merely write their account number and the sum of their transaction on a cashier or regular check.

Once this step has been completed, they will hand their slip over to the cashier, who will tally the currency and add it to the user’s account. The money should be available pretty much straight away, or at least within a couple of hours, at most.

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What is the difference between a deposit and a counter credit?

A counter credit means you made a deposit at the actual bank, in person with a teller. By contrast, a deposit can be made without an in-person transaction with a bank teller.

You can make a deposit through an ATM or your mobile banking app. That type of deposit however will not show up as a counter credit on your bank statement.

What Are the BEnefits of a counter credit?

While going to the bank in person may seem like a pain, there are some benefits to doing so for a counter deposit.

First of all, in most cases you will be credited for the deposit immediately. If you deposit funds through an ATM or mobile app, you may not have access to all the funds for a couple of days.

But with a counter credit or counter deposit, the funds should post right away to your bank account.

Another major advantage is that there is less room for error. A face-to-face transaction with a teller should be error-free, and if anything did happen, you could ask them right then and there to fix it.

However, with technology like ATM machines and mobile apps, there is always the chance that technology could malfunction.

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Banking Terms and Abbreviations That You Should Remember

The responsible management of your finances includes checking your bank statements, but, sometimes, doing so raises more concerns than it does explanations, especially if you are not sure of some of the lingo used.

It may be a smart option to become acquainted with some acronyms you will probably encounter on your bank account statements, as bank language isn’t always straightforward.

It will help you in the long run to become familiar with some of these bank statement abbreviations.

You may come across some of the additional standard bank abbreviations listed below when looking at bank statements for regular bank transactions. Take a look through, and become acquainted with them to help yourself in the future.

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ACH

The term ‘ACH’ stands for Automated Clearing House. This is a system that permits computerized money transfers between banks that do not require cash, checks, bank cards, or wire transfers. ACH network applications include direct paycheck transactions and electronic bill payments.

APR

Annual Percentage Rate, or APR, is the rate of interest charged on your funds over a year.

APY

The term ‘APY’ refers to Annual Percentage Yield, which is the sum of money you make on funds maintained in your bank account or savings account over the course of a year.

It displays compound interest, which entails interest on both your principal and any interest that your primary generates.

ATM

Automated Teller Machine is known by its abbreviation, ATM, which most people are already familiar with.

The use of debit or credit cards, along with a personal ID number, enables withdrawal and deposit of cash from these machines.

Many banks participate in networks that let you use an ATM from another bank free of charge, but if your bank is not one of those organizations, you will be charged a price to use the ATM.

CD

The term ‘CD’ stands for a type of savings account offered by banks that is nationally regulated and has a maturity period. It is a relatively safe investment with a small return and early withdrawal fees.

ERTF

Exchange Rate Transaction Cost, also known as ERTF, is a fee associated with using credit cards or debit cards at an ATM or merchant beyond your country of residence.

NSF

When a check is made for a sum greater than the current balance of the account it is taken on, it bounces and is referred to as having non-sufficient funds, or NSF. Both the check’s author and the intended receiver must pay NSF costs.

OTR

An OTR, or online banking transaction, is a transaction carried out using online banking.

POS

Point of Sale, or ‘POS’, refers to a transaction when you use your bank card to make a transaction.

TFR

Simply put, ‘TFR’ stands for ‘Transfer’, which is the act of moving funds from one account to the other.

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Alternative Ways to Deposit Cash

To fully understand what is happening to their money, some customers prefer to transfer money in person, over the counter. They feel safer communicating with a customer service representative, being fully informed while they conduct their transfers.

But in today’s hectic world, going to the bank can take a significant amount of time out of our day.

Digital banking is one new way people like to bank in order to save time. An estimated 203 million Americans use digital banking services!

In the sections below, we’ll go over some of the easier alternatives to actually going to the bank to deposit your money.

Using an ATM

Some financial organizations enable direct cash deposits into the ATMs, which is similar to inserting money into a vending machine. Others will call for the use of an envelope, a deposit slip, or both.

The fact that a cash transaction completed through an ATM may not be immediately available, unlike one made face-to-face with a cashier, is a significant disadvantage of utilizing one.

If you require the money immediately, keep in mind that it can take your funds one business day or longer to clear, based on the accessibility regulations of your bank.

While using an ATM, it’s important to keep in mind that occasionally mistakes may be made by the device and/or the bank. Though technology is always evolving, all machines eventually malfunction.

To prevent financial loss, you must be certain of the precise amount you are using to transact by counting it out beforehand.

Using Online Banking

Since you aren’t even required to leave your residence to carry out a transaction using this method, mobile banking is much more handy than making a deposit at an ATM. You only need a smart device and access to Wi-Fi.

Using your handheld device, you may deposit a mobile check anytime, anywhere. You merely sign the check, take pictures of the sides – front and back – and then settle it using the mobile banking application of your bank.

Every type of deposit, including mobile check deposits, must be verified. You won’t have access to your entire check deposit right away though.

Deposits made using mobile banking are also subject to extra restrictions. Your bank, for instance, might impose a monthly cap on the amount of money you can deposit via a smartphone.

Also, similarly to using an ATM, there is a chance that things may go wrong while using an app.

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Is Counter Credit a Direct Deposit?

No, a counter credit is not the same things as a direct deposit. Direct deposit is when you have something like your paycheck that goes straight from the company you work for into your bank account.

You don’t receive a check, instead the money is deposited directly into your bank. You don’t have to do anything yourself.

A counter credit however, is when you take your paycheck into the bank and have it deposited yourself.

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What is a Counter Deposit?

A counter deposit is the same thing as a counter credit. It is just making a deposit in-person at your bank with your teller.

Counter Credit vs. ATMs vs. Online Banking

While employing these trustworthy solutions, there is no right or incorrect approach to deposit your money. Each is relatively risk-free to employ, but one is much safer than the others simply because technology isn’t always dependable because of malfunctions.

As we mentioned earlier, ATMs and mobile banking apps are much easier to use than travelling all the way to your bank.

ATMs can be found in most places within a mile radius, and mobile banking can be used without even leaving the house; all you need is a smart device with an internet connection.

However, applications can crash and become unusable from time-to-time. Whether the servers are down, or the app is being overloaded, there may be the rare occasion of which the mobile banking app is, effectively, immobile.

Similarly, ATMs require maintenance from time-to-time to keep them working. However, this isn’t really something to worry about, as, as we said earlier, you can find ATMs everywhere. If one near you isn’t working, you can always go find another.

The old faithful way to deposit money is to go straight to the source; your bank. By going there yourself, you can rest assured, knowing that you can watch a real human being take care of your hard-earned cash for you.

Overall, each of these options are viable, and there is nothing stopping you from using all of them on occasion.

However, counter credit is no longer as popular as it used to be, as younger generations are becoming more accustomed to the easier options at their fingertips.

Final Thoughts

In a nutshell, the words ‘counter credit’ on your bank statement merely means that, at some point over the month, you made an over-the-counter deposit at your local bank.

Many older individuals prefer to bank in person because they feel a little safer doing business with a live person rather than relying on a machine to complete the task.

You will notice ‘Counter Credit’ or ‘Counter Deposit’ on your subsequent monthly report if you perform this task yourself.

However, if you would prefer to complete the same task at home, without using any effort, you could download a banking app onto your smart device instead. Or, you could find a nearby ATM to complete the job.

We hope you found this article helpful!