How Long Does It Take to Clear a Check?

D

The time it takes for a check to clear through the banking system is referred to as float. Float is the amount of time it takes for funds to become available after a check is deposited.

There are four types of float:

A. Processing float: The time it takes for a check to be processed and posted to the account once it has been received by the bank. This can vary depending on the type of check, the bank's processing procedures, and any delays in the mail.

B. Deposit float: The time it takes for a check to be credited to the account after it has been deposited. This can depend on the bank's processing procedures, any holds placed on the funds, and the availability of funds in the account.

C. Collection float: The time it takes for a check to clear through the banking system, including the time it takes for the check to be sent to the paying bank, processed, and credited to the account. This can vary depending on the location of the banks, any delays in the mail, and any holds placed on the funds.

D. Availability float: The time it takes for funds to be available after a check has cleared. This can depend on the bank's processing procedures, any holds placed on the funds, and the availability of funds in the account.

Therefore, the correct answer to the question is C. Collection float, as it refers to the time it takes for a check to clear through the banking system.