Memo Post: What is a Memo Post in Banking?

The memo post is a banking process of checking the transactions of an account to determine the current available balance in the account. When the bank posts a memo of any amount there is no credit or debit to the account.

In other words, the transaction amount is temporarily added or subtracted from the current available balance until overnight processing.

At this time, the transaction is scheduled to be posted on the next business day. This process helps prevent overdraws from the account while transactions are pending.

In more detail, memo post in banking refers to the temporary posting of transactions in an account. When a transaction memo is posted, the transaction is recorded, but it has not yet been cleared by the bank.

What is a memo post in banking example?

If you deposit a check into your bank account, the bank immediately sends you a memo informing you of the deposit. Now, you will be able to see your account balance immediately, but funds not be available for withdrawal until the check has cleared or fully processed.

What does a debit memo mean?

A debit memo is a document that the service provider uses to inform the customer about a deduction from their account. It is used to communicate with customers and service providers for transaction-related charges, corrections, or penalties.

In other words, if you purchase with a debit card, the transaction is recorded as pending on your account, reducing your available balance, even if the transaction has not yet been completed.


What is a debit memo post in banking?

A debit memo post is a document that records and informs the customer of debit adjustments made to their bank account. The adjustments made reduce the funds in the bank account.

What is a memo post in simple words?

A memo is a short official note sent by a bank to its customers who have an account with the bank.

What does a memo post debit mean?

Memo-post is a banking process, which is a temporary credit or debit transaction done to an account, which is to be met from the balance.


A memo post in banking is a debit or credit transaction made from an account that the bank uses to identify the current available balance in the account. This is a temporary brief account statement or note that separates them from final transactions. Once the temporary transaction is completely processed, the memo post is replaced by the final posting, and the transaction is considered complete.

About Sarif

Hi, I am Sharif (B.Com) financial advisor with 8 years of working experience in Axis Bank.

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