Definition of memo entry

debit or credit to a customer's account that is recorded to the bank's transaction journals at a different time than when the transaction actually occurred. Journal entries are entered to the general ledger usually at the end of the day. Many banks that operate electronic banking services, such as automated teller machines, do not record Electronic Funds Transfer (EFT) transactions in an on-line fashion, but record them to a memo file, sometimes called a strip file, which is used to update customer accounts.