A bank deposit and a bank credit both transfer funds to the depositor's account. With a bank credit, the bank itself adds money to the account, and with a deposit, the depositor adds money to the account. Because the bank needs to verify that the deposit is valid, the bank will ask for additional information from the account holder to authorize a bank deposit.
Credit Reasons
A bank credits an account if the bank makes an error, such as recording a deposit for less than its actual value, or paying more than the depositor authorizes on a check. The bank may also credit an account as part of a rewards program that pays the depositor a bonus for using a card linked to the account, or pays the depositor a bonus for opening the account and keeping it open for several months.
Deposit Methods
There are several ways for a depositor to add funds to a bank account, including depositing a check in an ATM, depositing a check or cash with a teller, a wire transfer, and authorizing direct deposit from an employer. Some types of deposit methods, such as a wire transfer, require the money sender to pay additional fees, which reduce the size of the deposit.
Deposit Authorization
The account holder must authorize the deposit. To make a deposit, the account holder fills out a deposit slip. The deposit slip lists the number of checks and their amounts, as well as any cash. The depositor also lists the amount of money to deposit into the bank account on the deposit slip, and the amount of cash to withdraw from any checks. The deposit slip includes the bank account number and the depositor's signature.
Verification
When an account holder deposits cash in the bank, the teller may use a special pen, a fluorescent light, or examine features of each bill to make sure that it is not counterfeit. When the account holder deposits checks, the bank may require the depositor to wait several days while it makes sure that the check writer has enough money to transfer. A bank can transfer money immediately from its own accounts after it authorizes a credit, although the bank may take some time to authorize the credit. According to the Federal Deposit Insurance Corporation, a bank has 20 days after a customer reports an unauthorized purchase to decide whether to credit the depositor's account.
