Memo posting

Memo-posting is a banking practice used in traditional batch processing systems where temporary credit or debit entries are made to an account before the final balance update occurs during end-of-day (EOD) processing.^[1]^[2] The temporary entry created during memo-posting is reversed once the actual transaction is posted during batch processing.^[3] Some modern banking systems implement real-time posting.

Examples:

When a customer receives a same-day electronic credit, the actual transaction will be processed during EOD batch posting. To provide immediate access to the funds, the bank creates a temporary memo credit that increases the available balance. Later, this entry will be removed as part of the EOD batch process.
While ATM withdrawals are officially recorded during EOD batch processing, the withdrawal amount is memo-posted immediately as a debit to prevent account overdrafts before final processing.

References

↑ American Bankers Association (1999). Banking & finance terminology. Washington, D.C.: American Bankers Association. p. 244. ISBN 978-0-89982-105-4.
↑ Essentials of cash management (7 ed.). Bethesda, MD: Association for Financial Professionals. September 2001. p. 101. ISBN 978-0-9708725-2-4.
↑ Parker, Donn B.; Smith, David C.; Turner, Geoffrey W.; Sherizan, Sanford (August 1989). Computer Crime: Criminal Justice Resource Manual. Issues and Practices in Criminal Justice. United States Department of Justice, National Institute of Justice, Office of Justice Programs. p. 129. Memo-posting systems require batch programs that periodically create a new, up-to-date data base and to eliminate the annotations.

[bfterminology1999-1] American Bankers Association (1999). Banking & finance terminology. Washington, D.C.: American Bankers Association. p. 244. ISBN 978-0-89982-105-4.

[cashmgmt2001-2] Essentials of cash management (7 ed.). Bethesda, MD: Association for Financial Professionals. September 2001. p. 101. ISBN 978-0-9708725-2-4.

[computercrime1989-3] Parker, Donn B.; Smith, David C.; Turner, Geoffrey W.; Sherizan, Sanford (August 1989). Computer Crime: Criminal Justice Resource Manual. Issues and Practices in Criminal Justice. United States Department of Justice, National Institute of Justice, Office of Justice Programs. p. 129. Memo-posting systems require batch programs that periodically create a new, up-to-date data base and to eliminate the annotations.

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