Banking Delay

Banking Delay

Time required for processing and clearing a check through the banking system.

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Banking Delay

The time it takes a bank to collect the funds from a check deposit to the issuing bank. A banking delay may take only a day or two for a local check, and perhaps longer from an out-of-state or foreign check. It is important to note that a banking delay is different from a check hold, which is the maximum number of days a bank may refrain from crediting a depositor's account while it attempts to collect the funds. Unless the check bounces, the bank must credit the account at the end of the check holding period regardless of whether or not the banking delay has passed.