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. On-Us Item

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    A financial institution licensed as a receiver of deposits. There ...
  5. Bad Check

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  6. Bounced Check

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