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Checking Terms and Definitions


Account – A record of financial transactions for a person at a credit union

Balance – The amount of money currently in your checking account

Bounced Check – A check that a credit union returns because it is not payable due to insufficient (too few) funds

Checking Account – An account that allows the holder to write checks against deposited funds

Check or Share Draft – A written order directing a credit union to pay an exact amount of money to a certain person

Check Register – A booklet that is used to keep a record of all your checking related transactions, including checks written and deposits. A checkbook register is used to perform reconciliation

Check Stub – A strip on the side of some checks that is torn off. The check stub is used to keep record of the amount of the check

Endorse a Check or Check Endorsement – When the payee signs their name on the back of a check to cash or deposit the check

Non-sufficient Funds – When you write a check for more money than you have in your account.

Minimum Balance – The minimum amount of money required in your account. Having an amount less than the minimum balance may result in extra service charges or reduced privileges.

Payee – The party that receives the check

Payer or Payor – The party that writes the check (to the payee)

Reconciliation – Adjusting one's checkbook balance to match a credit union statement.

Service Charge – An amount the credit union charges (fees) for use of the checking account

Share Draft Account – In the credit union world, a “share draft account” is the same thing as a “checking account.” (Recall that your credit union “savings account” is a “share account” because as a member you own a share of the credit union.)

Transaction – An exchange or transfer of funds; a transaction is something that’s recorded in a book of accounts (One type of transaction is the deposit—putting money into your account.)
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