Payment float

Payment float

Company-written checks that have not yet cleared.

Payment Float

A deposit into a bank account that has not yet cleared. For example, one may deposit a check for $1000 from an out-of-state bank. The funds may be posted to the account immediately, but they will not become available to the account holder until the issuing bank honors the check and transfers the funds to the receiving bank. This process can take as long as five business days. See also: Check Hold.
References in periodicals archive ?
This benefits the retailer (and the banks) by eliminating paper-handling costs and payment float.
This was due primarily to low interest revenue on payment float, and a higher than expected degree of volatility in consumer-paid payments, primarily from ITS clients acquired last August.