20 bank statement abbreviations explained in layman’s terms
Making sense of your bank statement is no easy task as it is often loaded with complicated and seemingly unnecessary jargon.
Tracking the entry and exit of your accounts could become even more essential once the daily spending limit of Â£ 100 per contactless card kicks in from October 15.
With the help of experts from the Raisin savings platform, This is Money highlights some of the most common abbreviations seen in bank statements and explains, in layman’s terms, what they mean.
Know the Details: Abbreviations in bank statements seem complex but are fairly straightforward once you master them
While the 20 most relevant terms and abbreviations are covered, some banks and building societies may use different abbreviations.
If you are concerned about transactions on your bank statement, or want more clarity on the meaning of certain terms, it is a good idea to contact your provider directly.
The first in our roundup of some of the more common abbreviations for bank statements is BMACH.
Although it looks complicated at first glance, BMACH is simply a brand of an ATM, also known as an ATM or cash machine, where you can put money in and out of a hole. in the wall.
If you see BMACH on your bank statement, it means you’ve made an ATM transaction, says Raisin UK.
Of course, if you do not recognize the transaction, you should contact your bank immediately.
Simple: BMACH is simply a brand of ATM machine, also known as ATM or cash machine.
On a bank statement, the abbreviation TFR generally denotes a transfer of money made.
If you see TFR on your bank statement, it means you’ve transferred money between bank accounts.
An abbreviation of FPI on a bank statement refers to Faster Payments Inwards.
A REIT payment is made using the electronic Faster Payment system. This means that you have received money from another account.
If you find the abbreviation POS strewn across your bank statement, don’t worry, it just refers to payments that were made with your debit card.
For many people, this is an abbreviation that they are likely to come across frequently when reviewing their accounts.
5.S / line
S / line stands for declaration line. If you see it on your bank statement, you’ll know it’s an individual statement that’s important to your bank.
If you see the abbreviation INT’L on your bank statement, it means that you have made a transaction abroad.
This can happen, for example, if you use your card abroad or buy an item abroad while you are here in Great Britain.
Rise: Contactless card spending limit increases to Â£ 100 in October
Many banks impose fees and charges on overseas transactions, so be sure to read your account specific terms and conditions before you go overseas.
The abbreviation BP on your bank statement means that you have made a bill payment.
According to Raisin UK, you might also see an extension of this, BP / SO, which stands for Bill Payment and Standing Order. This means that you have paid an invoice by standing order.
BGC stands for bank credit.
If this abbreviation appears on your bank statement, it means that you have deposited cash or checks at a bank or real estate agency.
CHG stands for charge. This means that you have been billed for a transaction that you have made.
10. S / 0
A standing order is a regular payment of a fixed amount of money that is deducted from your bank account.
This is an instruction to your bank, whereas a direct debit authorizes a business to withdraw money from you.
These can quickly add up and end up being a big monthly drain on your income, which means it’s important to regularly review your statements to see if you can still afford all of your standing orders.
Many banks now offer customers the option to cancel standing orders whenever they want, but it is always a good idea to read the specific terms and conditions involved to know the exact procedures required.
A BAC payment on your bank statement means that you used an electronic system to make a payment directly from one account to another.
12. NYA *
The format of this bank abbreviation is usually NYA * followed by the owner of the ATM, and that simply means that you made a payment with a card at an ATM.
A BSP is an invoice or a third payment made at a branch in a bank or a building society.
Many banks are keen to get people to make such payments online because it saves them money and they believe could save customers time.
You will find the abbreviation CUI on your bank statement when a check has not cleared.
Contact your bank or mortgage company to try to find out what happened and how the problem can be rectified as quickly as possible.
The abbreviation DIV stands for dividend.
If you see this on your bank statement, it means that you have received a dividend payment on the stocks you own.
Big banks were forced by the government to stop paying dividends to their investors last year, and many other companies have suspended payments until the fallout from the pandemic becomes clearer. However, payments are picking up again at a steady pace.
16. DD or DDR
The abbreviations DD or DDR will be common on many people’s bank statements as they refer to direct debit payments.
It signals a regular payment of a fixed or variable amount that you make into a savings account or a third party.
As with a standing order, direct debits can be expensive, so it’s worth watching to see if you can still afford them all.
DWP stands for Department for Work and Pensions. You will see this abbreviation on your bank statement if the DWP deposits money into your account. This could be for some benefit, for example.
An ERTF, or Exchange Rate Transaction Fee, reference appears on your bank statement when you use a card at an ATM abroad.
Charges may apply when transacting overseas, so read your account terms and conditions carefully before traveling.
An IMO, or International Money Order, means that you have made a payment abroad.
A REV, or cancellation, appears on your bank statement when money from a departure order or direct debit has been returned to you.
Do I really have to look at my bank statements?
Diving into the details of a bank statement won’t be high on anyone’s wishlist.
However, staying on top of what’s going in and out of your bank accounts is essential to ensure that all of your savings goals are met and that you don’t spend more than you can actually afford.
Keeping abreast of bank statements is also extremely important when it comes to detecting potentially fraudulent transactions. The first sign that a scammer has accessed your account can often be a single transaction on a bank statement.
âKnowing your bank’s abbreviations can help you understand what is and what is not a legitimate transaction,â said experts at Raisin UK.
If you see a transaction in your bank account that you don’t recognize, or if money has left your account during an apparently fraudulent transaction, the first thing to do is to contact your bank.
They will take immediate action to protect your money, which may mean freezing your account and sending you a new card.
You can also report the incident to the police via Action Fraud. The police will record the crime and send you a crime reference number.
Action Fraud will not call you unless you have instructed it to do so and will never ask for your bank details.
If you are unsure whether a call is genuine, call the Action Fraud team on 0300 123 2040. If you are deaf or hard of hearing, you can contact Action Fraud by SMS on 0300 123 2050.
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