collecting bank

Definition of "collecting bank"
  1. A bank that is not the payer bank, but is in charge of managing the collection of a negotiable instrument or payment orders
How to use "collecting bank" in a sentence
  1. After writing a check, the funds will be processed by the collecting bank before reaching the recipient's account.
  2. The family business deals only with their trusted collecting bank for their various transaction needs.
  3. In order to expedite the transaction, the company chose to go through a collecting bank known for its fast processing.

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