Understanding How Transactions Are Processed
Want better control over your account? Find out how posting works and how to keep better track of every transaction.
Posting order can have a big impact on your account.
To keep the most accurate record of your account balance, it's important to track all of the individual transactions you make. It is also important that you know how different types of transactions are posted to your account, and in what order. The following describes how transactions post to your account and gives you details on the order in which items will be posted.
Learn how different types of transactions are posted, and in what order – for Consumer Checking, Savings and Money Market Accounts (other than Time Deposit, Passbook and Club Accounts).
What is posting?
Posting is the process of recording against the credit and payment transactions received for your account. This is different from temporary holds that may be placed on your account for certain pending transactions that have not yet been submitted for actual payment. For example, as soon as we are made aware that a transaction may be made to your account, we may place a hold or temporary credit on your account in the case of a deposit. As a result, you may see a temporary hold or credit on your account that has not yet been posted. These pending debits and credits may actually be posted to your account on that business day, or on a future date, depending on the nature of the transaction.
What do I need to know about posting order?
The order in which transactions are posted and paid from your account is important if there is not enough money in your account to pay all of the transactions that are received for payment. The order can affect the number of transactions that overdraw your account or that are returned unpaid, as well as the amount of fees you may have to pay.
How do transactions post to my account?
Transactions can be posted to your account in two different ways: in "real time" or in "batch" at the end of the day.
Posting in Real Time
Certain transactions are posted to your account in real time, during the business day as they are made. These include:
- Transfers between accounts at M&T and payments to M&T loans made through M&T Online Banking or through one of our Telephone Banking Service Representatives
- Certain reversal transactions (e.g., certain reversals of a prior credit or debit posted to your account)
Posting in Batch at the End of the Business Day
Other transactions are posted to your account in a batch process at the end of each business day. The order we use for posting these transactions in batch each night is described below.
In what order do my transactions post in batch?
- Credits. We begin the batch posting of transactions to your account by posting credits (other than interest, which is credited at the end of batch), as well as reversals and adjustments for transactions from prior business days that have not already posted in real time.
- Debits. Next, we post debit items received for payment from your account on a given business day. These are posted in a particular order within groups and applied a unique methodology based on the type of debit item.
For instance: Debit card transactions will post based on when our records indicate the transaction was made, but checks will post based on the check number, if available. When we do not have a record of when a transaction happened, or we do not have a check serial number, we post those debit items by dollar amount – starting with the lowest dollar amount items first – within the group noted for that type of debit item.
The following chart details the types of transactions in each group and the order used, for debit items within each group:
How are fees posted to my account?
Fees can post to your account in several ways. Most fees post at the end of batch processing, but some post immediately after the transaction to which they relate (e.g., fees for bank-to-bank transfers through M&T Online Banking, wire transfers and overdraft transfers from a linked deposit account post immediately after the transaction to which the fee relates).
Most fees post on the same day they are incurred. Certain fees, including insufficient funds (NSF) and overdraft fees, are posted on the business day after an NSF or an overdraft occurs on an account.
Posting Order for Consumer Time Deposit, Passbook Savings & Club Accounts
After posting credits to your account and reversals and adjustments for transactions from prior days, we process and record debit items received for payment from your account on a given business day. These are posted from lowest to highest dollar amount.
Lastly, we post most fees and charges you have incurred in connection with your account. These are posted on the business day they are incurred, after we have posted that day's debit items, and in order from lowest to highest dollar amount.