Banks use various types of shorthands for many different activities and transactions happening in your account. Further, these shorthands are included within descriptions mentioned on your bank statement, which often confuses you. One such giving goosebumps to many is the Hold Rel Mem Cr, mentioned on many bank statements. This is not actually a charge description, but instead a description for the Hold on your recently deposited cheque or if there is some amount more than normal transferred to your account.
Banks to comply with local governing laws have to adhere to many terms and guidelines downloaded to them, failing to which they are penalized heavily, hence without taking any chance they will conduct routine activities even if it seems normal to us, the scenario specifically changed after 9/11.
Whenever you deposit a cheque or there is some high amount wired to your account, to ascertain the legitimacy, origin, and also the availability of funds, the bank will put a hold on that portion of the money and carry out a communication with the chequer’s bank, while this all is happening, your statement as an intimation will be entered with Hold Rel Mem Cr, for some 2-3 days, depending upon the location.
We will more extensively understand the meaning of these descriptions on your bank statement under which scenario a hold is generally put on your money and how long it takes and if there is a charge for this and what you shall do. There are rare but still some chances of this being misrepresented because of some unauthorized transaction, we will understand that also.
What Does Hold Rel Mem Cr Mean?
HOLD REL MEM CR stands for “Hold Released, Memo Credit,” and it’s an important term that indicates some account activity that is particularly related to deposits and fund availability.
This code is mainly observed mostly when Chase Bank has released a temporary hold on the customer’s funds which often follows a large deposit or some new or unusual account activity.
HOLD REL MEM CR is always considered a special note that Chase Bank puts on their customers’ account to let them know that something important is happening with your account and money. You can consider it as an ongoing process in which the bank is working on processing some of your funds either through cheque or wire.
Chase Bank uses this code to convey and keep things safe and organized. You will mainly observe this whenever you deposit a big check or get a large amount of money wired in your account, the bank will then do this as an activity by putting a hold on that much funds and entering your bank statement with Hold Rel Mem Cr, and will make sure that everything is okay before allowing you to use all the money.
What Does Hold Rel Mem Cr Indicate?
You will see HOLD REL MEM CR appearing in your bank statement in a few common situations, but the most typical and common one is when you deposit a big check, like a tax refund or a paycheck from a new job.
It’s also highly possible when you receive a large wire transfer or if there’s suddenly some new or unusual activity in your account. The term “HOLD REL MEM CR” on your bank statement indicates a transaction-related status or note from your bank. Below is a breakdown of what it indicates;
What “HOLD REL MEM CR” Means
- HOLD:
- This often means that a transaction is temporarily on hold processing or pending. It’s mostly done as part of the process of waiting for final authorization or review by the other bank involved.
- REL:
- This indicates that the hold or pending status is being released which suggests that the transaction or credit being held is now being processed or being made available.
- MEM:
- This stands for “Memo,” which clearly refers to a note or memorandum related to the transaction. It’s there to provide additional details or reasons for the hold or release and it’s mainly for internal use only.
- CR:
- This typically stands for “Credit.” which indicates a credit adjustment or refund related to the transaction in progress.
Always remember that every time there’s a significant amount of money coming into your account that’s out of the ordinary, Chase Bank most likely will conduct the verification activity and use this code while they double-check everything.
HOLD REL MEM CR is just one among many codes banks use. Other such common codes you might see include “DEP” for deposit, “WD” for withdrawal, or “INT” for interest. While HOLD REL MEM CR is specifically related to releasing holds whereas other codes might indicate different types of transactions or account activities.
At the same time, many other banks might use “HPD” for “Hold Placed on Deposit” when they first hold the funds.
The Process Behind HOLD REL MEM CR
Initial Hold Placement
Whenever you deposit a big check or get a large sum of money in your account, Chase Bank will put a temporary hold on it. This simply means that the bank needs some time to check everything and “hold rel mem cr pending” will appear on your account, which means the bank is in the process of verifying the funds.
Communication Between Banks
After the bank has put a hold, Chase Bank will communicate to the other bank involved in the transaction. The discussion will be conducted as per official norms and in full compliance with the local governing laws and it’s then determined whether the money is there and if it’s safe to transfer. This back-and-forth helps prevent any mistakes or fraud.
Fund Verification Steps
The next step will be Chase Bank ensures that the money is real and belongs to you. They might also look at the check’s details or the sender’s account. This step is crucial and highly advised by law, in changing that “hold rel mem cr pending” status to a completed transaction.
Hold Release Procedure
Once Chase is sure everything’s good, they will then release the hold. This is when you’ll see “HOLD REL MEM CR” on your statement. The pending status will be immediately changed to available, and then you can access your funds.
Timeframe For The Entire Process
The whole process, from when you see “hold rel mem cr pending” to the final “HOLD REL MEM CR,” generally takes a few business days. For regular checks, it’s often 2-5 days, and for larger amounts or unusual transactions, it might be longer.
Temporary Account Restrictions
When you see “HOLD REL MEM CR” on your account, it’s simply telling you that there are some temporary limits on your money and during this time, you won’t be able to use all the money reflected in your account. Banks conduct this activity to stay careful while making sure everything’s okay with a big deposit or transfer.
Partial Fund Availability
While there’s a hold, Chase Bank usually allows customers to use some of the money right away. For instance, if there is a deposit of a $1,000 check, they might allow you access to $200 immediately while they verify the rest. This way, you won’t be completely cut off and it also makes sure to avoid inconvenience.
Potential Overdraft Issues
Be careful during a hold period, it’s rare but there are reports that customers while trying to spend money that’s part of the hold, accidentally overdraw their account. It would invite some fees or declined transactions.
Possibilities: Why is Hold Rel Mem Cr
Below are some common scenarios in which you might see a “HOLD REL MEM CR” charge or note on your bank statement:
1. Pending Transaction Approval
- Scenario: A transaction was initially put on hold due to a security check, verification, or pending authorization.
- Example: You have made a large purchase online, and the bank placed a hold to verify the transaction. Once verified, the hold is lifted, and the transaction is processed, showing up with a “HOLD REL MEM CR” description.
2. Refund Processing
- Scenario: You returned a purchase or have received a refund from a merchant. The bank would initially hold the amount to ensure it’s correctly processed before applying the credit.
- Example: After returning an item to the merchant, the store initiates a refund. The credit bank will put a hold on the refund amount until it’s verified and then will apply it to your account.
3. Temporary Authorization Holds
- Scenario: Some merchants could also place a temporary hold on your credit card to make sure that you have sufficient funds. After the actual charge is confirmed, the hold is released, which will be described as “HOLD REL MEM CR” on your credit card statement.
- Example: When you book a hotel room or rent a car, a temporary hold is put on your card against your expenses. After the final settlement, the hold is released.
4. Credit Adjustments or Corrections
- Scenario: A credit card issuer may sometimes need to make adjustments to your account due to some billing errors. The “HOLD REL MEM CR” note here indicates that a hold was applied for review or correction purposes.
- Example: If there is an error in billing for some subscription service, the issuer will place a temporary hold while the error is reviewed and corrected which will lead to a credit adjustment on your card statement.
5. Merchant Dispute Resolution
- Scenario: If you have disputed a charge with your credit card issuer, they might place a temporary hold while they investigate the report. After it’s resolved, the hold is released, for any credits or adjustments.
- Example: You have disputed a charge for some service you did not receive. The issuer will temporarily hold the amount while the dispute is settled and, once resolved they will issue a credit or adjustment.
6. Subscription or Service Changes
- Scenario: Changes made to your subscriptions or services, such as upgrades or downgrades, also involve temporary holds on current bill periods and subsequent credits as adjustments are then later processed.
- Example: If you have changed your subscription plan from a premium one to a basic one, the issuer in this scenario will temporarily hold the adjustment amount and then apply credit once the change is determined.
7. Fraud Charges
- If no above scenario relates to you, you must verify diligently and if still nothing comes up, it’s more likely to be a fraudulent charge. Scammers use descriptions and entry mentionings from banks and genuine merchants to confuse people.
What to Do To When You See Hold Rel Mem Cr
- Review Recent Transactions: Check your recent bank and credit card transactions also to match the note with any pending or recent transactions.
- Contact Customer Support: If the notation remains unclear or you have doubts, immediately contact your credit card issuer’s customer support and enquire about detailed explanations and confirmation.
- Monitor Statements: Keep a close watch on your statements for any further changes or adjustments related to this charge.
How To Know if “HOLD REL MEM CR” Is Real?
1. Match the Charge with Your Transactions
- Review Your Statements: Check your credit card statement and bank statement for the transaction date, amount, and merchant name.
- Cross-Check: Match these details with your recent transactions, receipts, or account statements and verify if the charge exactly matches any of your activities or purchases.
2. Consult Your Credit Card Issuer
- Contact Customer Support: Reach out to your bank or credit card issuer’s customer service and enquire. Specifically, if you are suspicious about the descriptions, request for immediate card freeze and account hold
- Verify the Charge: The issuer shall confirm if the charge is legitimate if it was processed correctly, and if it matches with any recent activity on your account.
Conclusion
Naming conventions used for bank statements and credit card descriptions involve many sequences of shorthands which often confuses their customers. Moreover, if you search over the internet, it’s full of speculation and you must determine what type of source you are referring to.
Many people hardly care about this and never carry out extensive research to determine the nature of the charges or other entries on their credit card or debit card statements.
In case of any more than normal confusion, you must reach out to your bank or credit card issuer.
Frequently Asked Questions
Why Is There A Hold On My Cheque Deposit?
The hold banks put on your money allows them enough time to validate the check, which can help you avoid potential fees in the event a deposited check is returned unpaid.
How Do I Remove A Hold On My Bank Account?
Try reaching out to your bank and ask for an explanation for the hold or sometimes even to release the hold. In most cases, you won’t be able to do anything about the hold though, and because all banks have them, you can’t switch banks to avoid them either.
Can A Bank Cancel A Hold?
It’s observed in most of the cases, that there is nothing you can do if the bank has a hold on your deposit. You can check with your bank to make sure there isn’t an error, but you’ll most likely have to wait until the hold clears
Also Read – What is On Inc Credit Card Charge
