What Does ATM Credit Mean on a Bank Statement?

“ATM credit” on a bank statement indicates that funds have been added to an account through a transaction conducted at an Automated Teller Machine (ATM). This entry signifies an increase in the account balance. Understanding this term helps clarify how deposits and other transactions are reflected in financial records.

Understanding ATM Deposits

“ATM credit” most frequently denotes a deposit made at an ATM. This process involves a customer inserting cash or checks into a deposit-enabled ATM, which then logs the transaction. The banking system records this as a “credit” to the account, reflecting that money has been received or added. While the transaction is immediately logged, the actual availability of these funds for use may not be instantaneous.

Fund Availability for ATM Deposits

When funds are deposited via an ATM, banks often initially provide a “provisional credit.” This means the amount is reflected in the account balance, but not all of it may be immediately accessible. The availability of deposited funds is governed by federal regulations, primarily the Expedited Funds Availability Act, also known as Regulation CC. Banks are required to clearly disclose their specific funds availability policies to customers.

Cash deposits made at an ATM are available for withdrawal on the same business day or the next business day. For check deposits, banks may place a hold before the funds become fully available. Under Regulation CC, banks must make the first $275 of a check deposit available by the next business day.

The remaining portion of a check deposit can be subject to longer holds, ranging from two to eleven business days, depending on factors such as the check amount, the account’s history, and whether the ATM belongs to the customer’s bank. Deposits made after a bank’s daily cutoff time, which can be as early as noon for ATM transactions, are considered received on the subsequent business day, further delaying availability. Weekends and federal holidays are not considered business days, which can extend the waiting period for fund access.

Other Meanings

While primarily referring to deposits, “ATM credit” can, in less common contexts, signify a cash advance taken from a credit card at an ATM. In this scenario, the “credit” represents a loan against the credit card’s available credit limit, rather than a deposit of funds into a checking or savings account. Cash advances incur higher interest rates than standard purchases, and interest begins accruing immediately, without the usual grace period. Cash advance fees are charged for such transactions. Banks may also issue an “ATM credit” to correct an error, such as an overcharge, or to reimburse fees incurred at other ATMs.