Counter Credit [What Does It Mean?]

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  • Post last modified:June 20, 2021

Some terms on bank statements can be confusing. One of those terms is “counter credit.” What does counter credit mean?

Counter credit refers to an over-the-counter deposit made to your bank account. The term is used to differentiate it from other deposits, including deposits made via mobile app, ATM, or mail. Some banks use the term “counter deposit” instead of “counter credit.”

Read on to learn more about counter credit and its meaning.

Counter Credit

counter credit

Counter credit refers to an in-person deposit made to your bank account. This term is available to differentiate it from other forms of deposits, including deposits made through an ATM or a banking app. In some banks, they use the term “counter deposit” instead of “counter credit.”

In other words, counter credit is an over-the-counter transaction. Due to the emergence of other types of deposits, banks have decided to use the term “counter credit” or “counter deposit.”

Counter credit is considered the most direct approach to place money into your bank account. It could be done by you personally, or it could be someone else who owes you money.

Many people still use counter credit. Most of them belong to the older generation who find it complicated to use the internet or even the ATM. They find it more convenient to deposit over the counter.

Counter Credit Advantages

Deposits via mobile app, ATM, or mail are more popular now than counter credit. But those people who prefer over-the-counter transactions still find many advantages to it.

Here are some of its advantages:

  1. Option for People Handling Cold Cash and Checks
  2. Avoid Issues Encountered with ATMs
  3. Cash or Check Is Accepted Even If the Bank System Is Offline
  4. Correct Errors Immediately

Let’s discuss each of these items:

1. Option for People Handling Cold Cash and Checks

If you have a business that accepts cash payments, making an in-person deposit is always the best option. This is true, especially if you handle large amounts of cold cash.

You can deposit the cash using the ATM, too. However, many people believe that counter credit is more convenient.

Depositing a check by mail or through the ATM is possible. But most depositors experience issues in doing so. These issues can be quickly addressed when the transaction is done over the counter.

2. Avoid Issues Encountered with ATMs

In most cases, people only use the ATM to make withdrawals. Not everyone knows how to use its other features. This is particularly true for the older generation.

While depositing through the ATM brings convenience, that’s not the case all the time. For instance, if you deposit old or crumpled bills, the ATM finds it hard to detect them, leading to improperly counted bills.

Using the ATM to deposit checks is sometimes a hassle too. Issues may arise if the details you typed using the ATM are not the same as the details written on the check.

Another thing, you can’t stay too long at the ATM. This is especially true if there is a long line behind you. Once you encounter a problem while transacting via the ATM, it doesn’t only bring inconvenience to you. It also brings inconvenience to others.

If you encounter these inconveniences, there’s no other way but to do the transaction over the counter. Doing so will guarantee that you will finish and complete the transaction successfully.

3. Cash or Check Is Accepted Even If the Bank System Is Offline

If the ATM is offline, there’s no other choice but to find an online ATM elsewhere. You might even encounter falling in line for a long time. Then, when it’s finally your turn to transact, the ATM system suddenly goes offline.

You won’t experience this with a counter credit transaction. Whether the bank system is offline or not, the bank teller will accept your cash or your check. They will inform you that their system is offline, but your funds will be deposited as soon as their system returns.

This way, you don’t have to come back another day to bring your cash or check again. Doing so is very inconvenient, especially for busy people.

4. Correct Errors Immediately

When you deposit in person, you can immediately check the transaction slip for any errors. If there are, you can right away inform the bank teller about it. That way, they can make the necessary changes.

If you deposit via the mobile app, through an ATM, or by mail and find errors, you won’t be able to correct the errors right away. You still have to contact the Customer Service team to report the incident.

In most cases, the Customer Service teams of financial institutions are all dependable and efficient. It’s just that the turnaround time for solving issues is longer than when you do an actual visit to the bank.

Counter Credit Disadvantage

counter credit meaning

Inconvenience to Bank Clients

If there is any disadvantage to using counter credit, it is all about the inconvenience it brings to bank clients.

Depositing over the counter indeed allows you to leave the bank with a complete and successful transaction. But this doesn’t mean that you will have a fast transaction too. You’re lucky if you find only a few customers inside the bank once you step inside. But that’s not the case all the time. In most cases, banks are jam-packed.

When you visit a bank, you will find customers either depositing or withdrawing large sums of money. This is why it takes a bank teller a long time to handle each transaction.

Bank tellers have to count all the money. But it is only one of the tasks they do to complete the entire process. Other tasks include encoding the details in the computer and printing your transaction slip, among others. Unfortunately, there are times when you even have to spend half a day waiting for your queue.

So, if you’re one busy person, you will find over-the-counter transactions very inconvenient. Unlike if you transfer funds online, you can do this anytime you want to. It’s the same if you deposit by mail; you can do this at your most convenient time.

Sometimes, people free their schedule for half a day to make in-person deposits. Other times, they even free their schedule for the whole day.

Bank of America Counter Credit

You have probably noticed the term “counter credit” on your Bank of America (BoA) bank statements. BoA uses this term in the same manner that other banks use it. Suffice it to say that Bank of America counter credit means deposits done at the physical BoA location.

What if you see the term “counter credit” on your BoA bank statement, but you don’t remember doing such a transaction? Is it possible? Yes, it is because counter-credit Bank of America transactions doesn’t necessarily mean that you are the one who made the deposit.

Depositing to your bank account can be done by other people. This happens most of the time if you have a business and your clients pay you by directly depositing to your account.

It’s basically the same if you have to pay your suppliers. Whether it is in cash or check, you can deposit directly to their bank accounts by transacting over the counter.

Again, what is counter credit? What does counter credit mean on a bank statement? Counter credit refers to an over-the-counter deposit made to your bank account. The term is used to differentiate it from other forms of deposits, including deposits made via mobile app, mail, or ATM. Some banks use the term “counter deposit” instead of “counter credit.”

Counter Credit Vs. ATM Deposits for Depositing Cash

bank of america counter credit

Whether you have a regional or national bank, it is possible to make an over-the-counter deposit at the branch nearest you. The transaction doesn’t have to be done in the exact bank location where you opened your bank account.

Counter credit is a very straightforward transaction. Once you’re in the bank, get your queue number and fill out a deposit slip with the necessary details. As soon as it is your turn, hand your deposit slip and the cash or check to the bank teller. Then, wait for the entire process to be completed. The complete process is all done right in front of you.

Counter Credit Means Fast Transaction

A cash deposit done over the counter gets credited to your bank account right away. So, once you step out of the bank, you can already use the same funds if you need to issue a check or do online fund transfers.

ATM Deposits Need Further Validation

If you deposit cash through the ATM, your funds might not be readily available. It’s true that aside from feeding the bills, you also type in the details using the ATM. This means that it’s possible that the bank already knows about your transaction, especially if they have a real-time system.

However, such a transaction still needs further validation. The bank still needs to conduct the check-and-balance approach. This ensures that the amount of money deposited through the ATM is the same as the amount you typed in.

Some banks require you to use an envelope when depositing through the ATM. You have to enclose the cash in it, seal it, and then feed it into the machine. However, before you feed it, you are required to write the details on the envelope. The bank validates this too to ensure that the details don’t have any discrepancies.

Depositing Checks Over-the-counter Vs Using a Mobile App or an ATM

If a client of yours hands you a check as payment, you can have it deposited over the counter or at any branch of your bank. The bank teller will ask you to sign at the back of the check. Some banks will require you to write other details, such as your full name and contact details. Once you’re done doing so, the bank teller will begin the process of crediting the money to your bank account.

Counter Credit Means Quick Processing of Transaction

As soon as the bank teller is done, try to check your current balance. You will see that the amount is already reflecting in your bank account. However, if the check is still subject to clearing, you won’t be able to use the funds yet. In some banks, clearing time is 24 hours, while some take up to 2 days to clear a check.

Deposits Made Through an ATM or via Mobile App Need Further Validation

To the older generation, depositing checks using an ATM or a mobile app is complicated. But for the younger ones, using these facilities is more convenient than making in-person deposits.

With these 2 types of deposits, you can have your check deposited outside of regular banking hours. You can do it any time of the day. Busy people usually prefer either of these 2 options.

However, your funds might not be readily available soon because the check will still be subject to further validation. Unlike when you make an in-person deposit, the verification process gets done right in front of you.

The check will also undergo the clearing process, which will take a few days. It all depends on the type of check you deposited.

Conclusion – What Does Counter Credit Mean?

Counter credit refers to an in-person deposit made to your bank account. The term is used to differentiate it from other forms of deposits, including deposits made via mobile app, ATM, or mail. In some banks, they use the term “counter deposit” instead of “counter credit.”

By now, you should already have a clear idea of what counter credit or counter deposit means. So, the next time you encounter either of these 2 terms, you won’t get confused about what it is.