In banking terms, XFR stands for Transfer, but it also includes the Amount Requested, which may differ from the amount actually posted to the member's account.
Understanding XFR: Transfer and Amount Requested
XFR represents a transfer, and importantly, includes data on the original amount requested, which can be different from the final amount processed. This is crucial for tracking discrepancies, especially in scenarios like ATM withdrawals.
Key Components of XFR:
- Transfer: The fundamental action of moving funds.
- Amount Requested: The initial amount a customer intends to transfer or withdraw.
Example Scenario
Let's consider an ATM withdrawal:
- A member requests a \$100 withdrawal (Amount Requested = \$100).
- However, the ATM only dispenses \$80 due to a shortage of cash.
- In this case, the XFR record would show:
- XFR = Transfer
- Amount Requested = \$100
- Amount Posted = \$80
This distinction is important for auditing and reconciliation purposes. It helps financial institutions understand why a transfer might not match the initially requested amount.
