The “Big Five” Canadian banks include Royal Bank of Canada, Toronto Dominion Bank (TD Canada Trust), Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce (CIBC). Are there other viable options?
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Credit Memo vs. Debit Memo: What’s the Difference?
– canadianfinanceblog.com
If you pay close attention to your bank statements, you may notice an item labelled, “credit memo”, from time to time. But without more information, it’s hard to know what the credit memo is for; why you received extra money in your account. The same goes for “debit memos.” Businesses also issue credit and debit memos for various reasons, which we’ll cover in this article.
What Is a Credit Memo?
A credit memo transaction occurs when money is added to an account. Credit memos are most often associated with banks and other businesses that sell products and services. Banks will issue credit memos for various transactions, including issuing interest on a customer’s savings account balance, crediting a customer for an overpayment, and refunding a bank account fee.
A business that sells goods may issue a credit memo instead of a refund to the buyer when a product is returned. The credit memo should include a written explanation of the transaction, along with a reference number.
Credit Memo Examples
Here are some examples of when a business might use a credit memo:
What Is a Credit Memo?
A credit memo transaction occurs when money is added to an account. Credit memos are most often associated with banks and other businesses that sell products and services. Banks will issue credit memos for various transactions, including issuing interest on a customer’s savings account balance, crediting a customer for an overpayment, and refunding a bank account fee.
A business that sells goods may issue a credit memo instead of a refund to the buyer when a product is returned. The credit memo should include a written explanation of the transaction, along with a reference number.
Credit Memo Examples
Here are some examples of when a business might use a credit memo:
The credit of bank service charge or bank fee
A credit of previous bank charge (mortgage appraisal fee)
Store credit
Interest earned
Bill payment credit
Shopping credit
Credit for next purchase
Offer credits
Other Times a Credit Memo Is Used
Credit memos are often used to correct an error or refund a customer when a product arrives damaged to the shipping address…
