What Is Counter Credit?(Key Facts)

Written By Shalini Kapoor
Reviewed by Daisy Martinez
Last update:
Our site offers educational and informational content only, not professional financial advice. Consulting a financial advisor about your particular circumstances is best.

If you have ever read and saw the term “counter credit” at least once in your bank statements, don’t worry, you’re not in trouble! A lot of people grow startled when they see this in theirs, but, what does it really mean?

Counter credit is the activity of a customer walking into their bank and making a cash deposit with a bank teller in person. Sometimes, it’s called counter deposit.

In this article, we will progressively discuss everything about counter credit that you should know about. From understanding what it is, how it works, to its different types, we got you!

What is Counter Credit?

It may seem and sound alarming, especially when you see it in your statement. I mean, who wouldn’t feel alarmed when there’s “credit” haunting you? But, in actuality, it’s not that big of a deal!

In the financial world, a counter credit, also commonly referred to as a counter deposit, is when a person walks into a bank and makes a cash deposit with a bank teller in-person. So, the term really is what it is – you “make a credit to your account” via” a bank’s counter.”

When you think about it and read between the lines, it does actually make sense!

How Does Counter Credit Work?

Don’t overcomplicate it because it is what it actually is. Like how we know all banks, they have counters, tellers, tables, pens, and those pesky little papers called slips. Now different banks have varying deposit slips, so, whichever bank you’re in, be sure to get the right deposit slip.

Once you have that, write all the needed information and prepare the money. The process will depend on the bank you are in; you can either give it to a bank teller or you could submit it to the people seated in the tables.

The sign that your deposit has been made would be a receipt. This receipt should include:

  • Your bank account (with your name and account number)
  • Amount you deposited
  • Time and date of the transaction
  • Transaction type (which is counter credit)

Counter Credits vs. Deposits: How Do They Differ?

Counter credits and/or deposits are similar in the sense that the owner of the money will put it in a bank account. Whether it’s in their bank account or another customer’s, it can still be considered as a counter credit or a deposit.

However, this all changes in the way the money is deposited or put in the bank account.

The term “deposit” is actually vast. In today’s time, making a deposit doesn’t actually require a client to come into a bank and give people their money. People can make a deposit through:

  • Bank transfers (whatever way)
  • Electronic machines (ATMs)
  • Mobile app transactions
  • Payment processing centers
  • Points-of-Sale (POS)
  • Checks
  • And many more

With all of these information, counter credits are types of deposits where the person would visit a bank’s “counter” to make the deposit.

Pros of Counter Credit

Counter credit has its fair share of advantages and pros. So, here are the advantages of counter credit!

  • Accuracy of the deposit and information
  • Accommodation of large-value transactions
  • Time-saving – in the long-run!
  • Real-time observation if something doesn’t seem to be right
  • Safety and security.
  • No delays, no downtime!

Cons of Counter Credit

But hey, we didn’t say that counter credit is all rainbows and butterflies. There are cons and disadvantages to it, too! So, a couple of the considerations about counter credit include:

  • Lines. Long lines just to do a single transaction
  • Short-staffing and longer waiting times
  • Banking hours are limited. You need to be present when they’re open
  • Traveling to the bank with large sums of money could be risky

What’s a Counter Deposit?

I mean – there’s counter credit, there should be its opposite, counter deposit, right?

Well, a counter deposit is actually just like what a counter credit is. It’s when you make a deposit in the bank, over the counter!

Don’t confuse yourself – counter credit and counter deposit is the same thing; they’re just used in different perspectives.

What is Counter Credit at Bank of America?

In the Bank of America (BoA), a counter credit is when a Bank of America client makes a deposit over the counter of the bank. When you see it in your statement, it just means that the money or amount incurred is the amount you deposited in-person at the bank.

They’re all the same – the only difference they have would be the institutions they’re on. If it’s Bank of America, it’s BoA counter credit, if it’s JP Morgan, it’s JP Morgan – you know the rest.

What is Counter Deposit at Bank of America?

Counter deposits are also counter credits in the BoA. It’s the transaction where you did an over-the-counter cash deposit, in-person at the bank. Now, you might fail to remember it, and it could be another person.

However, seeing either counter credit or counter deposit on your banking statements only mean one thing – a cash deposit was made and money was added to your account.

And that’s what a counter credit is! I know what you’re thinking – and don’t worry, I thought it was some type of credit on the account, too! But no, it simply is a deposit made to your account in which the process has been done at the bank, in-person!


Do you have any other questions about counter credit and its branches in banking? Here are some of the most asked questions about it!

How Long Does Counter Credit Take to Clear? 

In a typical setting, the money you took in and gave to the counter will immediately be available. This is not like online banking, which, in most occasions take several business days (some of them).

However, you’ll want to consider a few factors because there are instances where the crediting is delayed. These considerations are:

  • Time of day because all banks have clearing
  • Interbank communications and transactions
  • Amount you’re crediting
  • Accuracy of information

What is BGC on a Bank Statement?

BGC is the acronym for Bank Giro Credit. It’s a form of payment method in the United Kingdom through the use of the Giro system. 

To add to that, you could be wondering what GIRO means. GIRO is an acronym for General Interbank Recurring Order, which is a payment service.

What Does it Mean When You Say “Counter Payment”? 

In the financial sphere, the term “counter payment” refers to when a customer is making payments over-the-counter – at, you guessed it – the bank. Whether it’s a payment to another person, another business, or whatever the case may be, it’s called payment banking.

What is a Counter Transaction?

Counter transactions are transactions that are done directly at a bank’s counter. The “counter” in most of these terms are bank counters! Counter transactions are typically used in securities or foreign currencies where investors acquire coins, notes, or other physical securities via the bank.

What is Counter Credit Barclays?

Barclays, one of the most prominent banking institutions in the world, also has counter credit – and, you guessed it – it’s the same thing! It is just that, you do the transaction at a banking counter at Barclays.

What is a Direct Counter Deposit?

A direct counter deposit means that the deposit was made by the person who owns the account – or someone else, on your behalf. So, if you see a direct counter deposit on your account, it means that it was put on your account.

NOTE: This will appear as a credit to the account where the funds were drawn.  

Final Verdict

A lot of people grow confused in understanding what counter credit is, especially in their first time hearing it or reading about it. But, in reality, it’s not as complicated to understand as it is.

So, don’t panic when you see a counter credit on your statement – it’s just someone or yourself putting money in your bank! The process was just made at the bank’s counter, not anywhere else! 

Photo of author

Shalini Kapoor is a dedicated financial writer and editor at cashsavvytips.com. Currently pursuing her Master's in Accounting, she possesses a unique blend of academic rigor and practical insight into personal finance. Shalini is fervent about empowering individuals with actionable financial advice, grounded in her in-depth studies and natural flair for simplifying complex topics. As an editor, she ensures every piece of content meets the highest standards of accuracy and relevance. With a passion for continuous learning, Shalini is not just sharing knowledge but also constantly expanding her own, to benefit the readers of cashsavvytips.com.

Content Disclaimer: Our site offers educational and informational content only, not professional financial advice. Consulting a financial advisor about your particular circumstances is best.

Leave a Comment