Transit Item


DEFINITION of 'Transit Item'

Any check or draft that is issued by an institution other than the bank where it was initially deposited. Transit items are separated from checks that were written by a bank's own customers. They are submitted to the drawee bank through either direct presentation or via a local clearing house.

BREAKING DOWN 'Transit Item'

Transit items can also be presented to the drawee bank through one of the Federal Reserve Banks or a regional check-processing center. These checks are usually drawn and sorted by banks before their own checks are processed.

  1. Check

    A written, dated and signed instrument that contains an unconditional ...
  2. On-Us Item

    A check or draft that is presented to the bank where the check ...
  3. Bank Draft

    A type of check where the payment is guaranteed to be available ...
  4. Bad Check

    A check drawn on a nonexistent account or on an account with ...
  5. Bounced Check

    A slang word for a check that cannot be processed because the ...
  6. Bank

    A financial institution licensed as a receiver of deposits. There ...
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