What is a 'Depository Transfer Check - DTC '

A check used by a designated collection bank for depositing the daily receipts of a corporation from multiple locations. Depository transfer checks are one method of ensuring better cash management for companies that collect cash at multiple locations.

A third-party information service first transfers data on the day's receipts from the facility manager at each location to a concentration bank. Based on that data, the concentration bank then creates DTCs for each deposit location and enters them into the check-processing system.

A DTC is also known as a "depository transfer draft."


BREAKING DOWN 'Depository Transfer Check - DTC '

A DTC looks like a personal check, except that "Depository Transfer Check" is written across the top center of the face of the check, and the DTC does not bear a signature.

ACH has gradually dislodged DTC-based systems because it is faster, cheaper and more efficient. Firms that are not part of an ACH network must still use DTCs.

RELATED TERMS
  1. Chill

    Special restrictions that can be placed on a given security by ...
  2. Authorized Settlement Agent

    A bank that is authorized to submit checks and other cash items ...
  3. Government Depository

    Libraries through the United States and its territories where ...
  4. Direct To Consumer Advertising ...

    A form of marketing promotion that is aimed toward the end patient ...
  5. Regional Check Processing Center ...

    A local Federal Reserve facility where checks that are drawn ...
  6. Depository

    On the simplest level, depository is used to refer to any place ...
Related Articles
  1. Personal Finance

    Depository Trust Company

    The Depository Trust Company, founded in 1973 and based in New York City, is one of the world's largest securities depositories.
  2. Personal Finance

    8 Low-Cost Ways To Transfer Money

    If cost is your primary concern, there are several cheap(er) ways to move funds.
  3. Personal Finance

    Transferring Credit Card Balances To A New Card

    Before you take advantage of that new credit card's 0% interest balance transfer offer, read our step-by-step guide.
  4. Personal Finance

    Top 5 Reasons Banks Won't Cash Your Check

    Learn the top reasons that a bank won't cash your check, and find out what steps you can take to prevent those scenarios from happening.
  5. Personal Finance

    How to Cancel a Check

    If you've had a personal check lost or stolen, the next best step is to cancel the check by calling your bank and putting a stop payment on the check.
  6. Personal Finance

    Sending Money? The Top Money Transfer Services

    Need to send money in a hurry? Here's a list of the major players in the money transfer business. Compare rates, times and other details before deciding.
  7. Investing

    Best Ways to Send Large Sums of Money Abroad

    Understand why it may be difficult to send large sums of money internationally. Learn about the top five ways to send large sums of money abroad.
  8. Investing

    How The U.S. Government Formulates Monetary Policy

    Learn about the tools the Fed uses to influence interest rates and general economic conditions.
RELATED FAQS
  1. How does a depository bank benefit from issuing an ADR for a foreign company for ...

    For domestic investors the benefits of increasing the portion of their portfolio that they invest in foreign companies is ... Read Answer >>
  2. How long does it take a check to clear?

    It usually takes two days for a check to clear, but in some cases it may take longer. Discover how banks treat large deposits ... Read Answer >>
  3. Are there any regulations on transfer pricing?

    Learn about transfer pricing, its role in intra-business calculations, and how the U.S. government regulates transfer pricing ... Read Answer >>
  4. What are the Federal Reserve's guidelines on demand deposit accounts?

    Read about some of the Federal Reserve's requirements and guidelines regarding the treatment, safeguarding and processing ... Read Answer >>
Trading Center