Understanding your bank statement is no small feat, as it is often riddled with complicated and seemingly unnecessary jargon.
Keeping track of how much goes in and out of your accounts could become even more important once the £100 daily spending limit for contactless cards comes into effect from 15 October.
With the help of experts from Raisin savings platform, This is Money highlights some of the most common abbreviations used on bank statements, and explains in simple terms what they mean.
Know the details: Bank statement abbreviations look complicated, but are quite simple once you get the hang of them
While the 20 most relevant terms and abbreviations are covered, some banks and mortgage brokers may use other abbreviations.
If you’re concerned about transactions on your bank statement, or want more clarity about what certain terms mean, it’s a good idea to contact your provider directly.
First up in our roundup of some of the most common bank account abbreviations is BMACH.
Despite looking complicated at first glance, BMACH is simply a brand of ATM, also known as an ATM or ATM, where you can get 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, Raisin UK says.
If you do not recognize the transaction, you should of course contact your bank immediately.
Simple: BMACH is just a brand of ATM, also known as ATM or ATM
2. Severance pay
On a bank statement, the abbreviation TFR generally refers to a transfer of money.
If you see TFR on your bank statement, it means you have transferred money between bank accounts.
An abbreviation of FPI on a bank statement refers to Faster Payments Inwards.
An FPI payment is made using the Faster Payment electronic system. It means that you have received money from another account.
If you find the abbreviation POS anywhere on your bank statement, don’t worry, it simply refers to payments made with your debit card.
For many people, this is an abbreviation that they are likely to encounter frequently when researching their bills.
S/line stands for statement line. If you see it on your bank statement, you know it’s an individual statement that’s important to your bank.
If you see the abbreviation INT’L on your bank statement, you have made a foreign transaction.
This can happen, for example, if you use your card abroad or buy an item from abroad while here in the UK.
Rising: Contactless card spending limit rises to £100 in October
Many banks charge fees and charges on foreign transactions, so be sure to read the specific terms of your account before going abroad.
The abbreviation BP on your bank statement means that you have paid an invoice.
According to Raisin UK, you may 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 direct debit.
BGC stands for bank giro credit.
If this abbreviation appears on your bank statement, it means that you have deposited cash or checks at a bank or mortgage branch.
CHG stands for charge. It means that you have been charged for a transaction you have made.
A standing order is a periodic payment for a fixed amount that is debited from your bank account.
It is an order to your bank, while a direct debit gives a company permission to take money from you.
These can pile up quickly and end up being a major monthly drain on your income, which means it’s important to check your statements regularly 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 wish, but it is always wise to read the specific terms and conditions to know the exact procedures.
A BAC payment on your bank statement means that you have used an electronic system to pay directly from one account to another.
The format of this bank abbreviation is usually NYA* followed by the owner of the machine, and it simply means that you made a payment with a card at a machine.
A BSP is an account or third party payment made in the branch with a bank or mortgage lender.
Many banks would like people to make such payments online because it saves them money and, they claim, can save customers time.
You will find the abbreviation CUI on your bank statement when a check has not been cleared.
Contact your bank or mortgage lender to find out what happened and how to fix the problem as soon 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 from shares you own.
Major banks were forced by the government to stop paying dividends to their investors last year, and many other companies stopped paying out until the effects of the pandemic became more apparent. However, the payouts are now resumed at a high pace.
16. DD or DDR
The abbreviations DD or DDR will be common on many people’s bank statements as they refer to direct debits.
It denotes a periodic deposit of a fixed or variable amount that you make into a savings account or third party.
As with a standing order, direct debits can be costly, so it’s worth keeping an eye on them to see if you can still pay them all.
DWP stands for the Work and Pensions Department. You will see this abbreviation on your bank statement when the DWP deposits money into your account. For example, this can be for certain benefits.
An ERTF, or Exchange Rate Transaction Fee, reference appears on your bank statement when you use a card at an ATM abroad.
You may be charged when you transact abroad, so please 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 chargeback, will appear on your bank statement when cash is returned to you from an initiation order or direct debit.
Do I really need to check my bank statements?
Going into detail on a bank statement won’t be at the top of anyone’s wish list.
However, it’s vital to stay on top of what’s coming in and going out of your bank accounts so you can ensure that your savings goals are met and that you don’t spend more than you can really afford.
Keeping up to date with bank statements is also extremely important when it comes to detecting potentially fraudulent transactions. The first sign that a crook has gained access to your account can often be a single transaction on a bank statement.
“Knowing your bank’s abbreviations will help you understand what is and isn’t a legitimate transaction,” Raisin UK experts say.
If you see a transaction in your bank account that you don’t recognize, or if money has been withdrawn from your account in an apparently fraudulent transaction, please contact your bank first.
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 to the police via Action Fraud. The police will register the crime and send you a crime reference number.
Action Fraud will not call you unless you have requested it and will never ask for your bank details.
If you are not sure if a call is genuine, call the Action Fraud team on 0300 123 2040. If you are deaf or hard of hearing you can call Action Fraud on 0300 123 2050.
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