Dictionary of Banking Terms: cut-off time
cut-off time
- point in the business day before which electronic payments, such as Federal Reserve Fed Wire transfers or Automated Clearing House (ACH) entries, must be submitted to a processing bank for entry into the interbank clearing system.
- transaction processing time, measured in seconds, at which an electronic banking terminal automatically disconnects from a host computer or intercept processor if unable to process a transaction. Also called time-out An automated teller machine or electronic point-of-sale terminal is said to time-out if no approval code is received within 15 to 30 seconds.
- latest time of day a bank will credit deposits made to a customer's account. Also called ledger credit cut-off.
