BANKING AFFAIRS

Detailed explanation-1: -A check clears when funds are moved from the check writer’s bank to the bank of the person depositing the check that was written. If the check writer and depositor use the same bank, this can potentially happen on the same day.

Detailed explanation-2: -Cleared checks therefore refers to checks which have been successfully processed and the funds have made their way from the drawer’s account to the depositing account. The time it takes for a check to clear will vary but is usually less than five working days.

Detailed explanation-3: -A canceled check is a check that has been paid or cleared by the bank it was drawn on after it has been deposited or cashed.

Detailed explanation-4: -What does check processing mean? Also called the clearing process, check processing involves the withdrawal of money from a bank account using a written order or mandate. When you write a check, you’re authorizing the specified amount of money to be withdrawn from your bank account and given to a recipient.