If you are a Chase customer, you may come across the term ‘hold memo dr’ and it can be quite confusing at first. Moreover, being held on your transaction is frustrating enough for you. It does not stay held for long but there are exceptions too. When I first got introduced to this term, I tried to know what exactly is the meaning of it or why it happen especially to chase users. Though I don’t have the perfect explanation for this, I will try to interpret it well with all the knowledge I already have as well as the information I gathered.
What does hold memo dr mean?
When you deposit a check or want to transact your fund through a check/memo, your bank may hold it due. You will get a message regarding it and ‘hold memo dr’ will be bolded in red color. Normally it happens due to the delay bank temporarily does for the funds to be available. Whether the check payer has the money on their account for a transaction, the bank will hold it for a short amount of time.
Sometimes funds are not available on your account even if it shows. Because of that, you cannot withdraw them or use them for other purposes. If you do then you may have to deal with overdrafting or returned fees. It will be a problem for both you and the bank.
That’s why Bank holds the memo solely to avoid the problem you may suffer.
When someone sends transactions to your account that is held and you cannot withdraw or use them, that is because of clearance. Even if your account shows you have this amount of money, the funds may not be transferred to your account yet. Until the transaction is clear, your bank will hold the memo.
What is overdrafting?
It is like a lend-borrow thing. If you want to make a transaction of a certain amount but your account does not have sufficient funds, the bank will transfer it anyway. That way you will owe your bank that amount. However, being in this situation is not good all the time. Unless you are in dire need, don’t overdraft your account. If you fail to pay it back, your transactions can get held and your bank can ask you to repay the amount at any time.
How long bank hold the memo dr?
The time varies. Normal holding takes two or more business days. But the more complex your reasoning is the more days it takes for example 7 to 10 business days or even more.
How to remove a hold memo?
You cannot simply remove a holding on your account. Firstly, contact the bank branch you are associated with and get the details and reasons for this issue. They will let you know the solution easily. However, there is no way you can ask them to remove it since this is a normal occurrence at every bank. The last thing you can do is to get the reason and whether you can solve it to avoid this issue in the future.
Beatrice has started writing to research more to have in-depth knowledge of things she has an interest in and this journey of hers has contributed a lot to our writing team.