Memo debit definition
/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.
