Cash Letter
In banking, a cash letter is a bundle of checks or other negotiable instruments that a bank or credit union sends to another financial institution or a clearinghouse for processing and collection. It typically includes:
- The physical or electronic checks being deposited.
- A summary document listing the total amount and details of the items enclosed.
- Instructions for how the items should be processed.
Cash letters are a key part of the check clearing process, especially in systems that still handle paper checks or use image-based clearing. They help financial institutions consolidate multiple transactions into a single transmission, improving efficiency and reducing processing time.
Learn more about the benefits of digitizing your paper cash letters with Alogent's award-winning solution, Unify.
