Q:

What do the codes on bank statements mean?

A:

Quick Answer

The codes on bank statements indicate transaction types, such as debits, credits and interest rates. Codes are often three or more alphabet characters. Each type of transaction -- direct debit, check, automatic payment, cash deposit and teller deposit, among others -- has its own unique code for identification purposes. Company codes also may be used to abbreviate the description of a transaction.

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Full Answer

Common abbreviation codes for bank statements include ATM for automatic teller machine transactions, D/D for direct debit payments, DIV for dividend payments and APR for annual percentage rate, generally denoting an accrued interest rate amount. Interest payment amounts also may be denoted by the code INT. In addition to the type of transaction and transaction description, other items listed on a bank statement include the date of a transaction, amount, whether it was a credit or a debit to the account and the bank account balance after the transaction was processed.

Transaction codes remain standard between banks to facilitate easier communication between banks. Standardized abbreviations also help ensure correct deductions and credits to the account when transactions are processed by a bank other than the customer's home bank. Investment accounts, credit card statements and other financial statements also may use some of the same transaction codes as bank statements.

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