Final answer:
The time between mailing a check and the money being withdrawn from the account is called the float. The length of the float can be influenced by several factors, but it has generally become shorter due to electronic processing.
Step-by-step explanation:
The period of time from when the payor puts a check in the mail to the withdrawal of the funds from the payor's account is known as the float. This float period can vary depending on several factors such as mail delivery time, the bank's processing policies, and the speed of the check clearing system. However, the amount of time this takes has decreased significantly in the digital age, as electronic processing tends to be much faster than mail processing.
The period of time from when the payor puts a check in the mail to withdrawal of the funds from the payor's account is called the processing time.During this processing time, the check goes through several steps:The payor sends the check to the payee through the mail.The payee receives the check and deposits it into their bank account.The payee's bank processes the check, verifying the payor's account has enough funds.The payor's bank withdraws the funds from the payor's account and transfers it to the payee's bank.The payee's bank credits the payee's account with the deposited fundshe length of the processing time can vary depending on factors such as the distance between the payor and the payee, the efficiency of the postal service, and the processing speed of the banks involved.