Definition of transit item

checks or drafts issued by a financial institution other than the bank where it is deposited. These are separated from checks written by a bank's own customers ( on-us item) and are submitted to the drawee bank by direct presentment (direct send), through a local clearinghouse, or a Federal Reserve Bank or Regional Check Processing Center. Checks drawn on other banks normally are sorted and submitted for collection before checks drawn by a bank's own customers are posted to accounts. Also called on others items.