Bank statements are full of codes and abbreviations that can be confusing. Understanding these bank statement codes helps you better manage your finances and identify each transaction type.
Common Transaction Codes
ACH - Automated Clearing House (electronic transfers), POS - Point of Sale (debit card purchases), ATM - Automated Teller Machine, DD - Direct Deposit, WD - Withdrawal, TFR - Transfer, INT - Interest, FEE - Service Fee.
Debit vs Credit Entries
Debits reduce your balance (purchases, withdrawals, fees) while credits increase it (deposits, refunds, interest). Understanding this distinction is fundamental to reading your statement correctly.
Identifying Unusual Transactions
Regularly reviewing transaction codes helps you spot unauthorized charges, duplicate transactions, or incorrect fees. If you notice unfamiliar codes, contact your bank immediately to investigate.