Transaction dates, processing dates, and value dates: French businesses need to know about these dates used by banks. In this article, we’ll look at value dates: what are they, and how do they differ from the other dates mentioned? Are value dates regulated? What is the value date of a check? What is the value date of a payout? Read the article to find answers to those questions and much more about value dates.
What’s in this article?
- What are value dates, and what is their purpose?
- What is the difference between transaction dates and value dates?
- What is the difference between processing dates and value dates?
- Different value dates
- Why are value dates important?
What are value dates, and what is their purpose?
Value dates are the dates used by a bank to calculate debit or credit interest. They are the dates on which transactions are officially recorded by a bank, and they aren’t usually the same as transaction dates and processing dates.
The time between these dates lets the bank review the transactions in the customer’s bank account and integrate the interest calculation (if applicable).
What is the difference between transaction dates and value dates?
Transaction dates are the dates on which transactions are carried out by customers. The bank is informed of a transaction on the same day. Value dates are the dates on which transactions are recorded by a bank.
What is the difference between processing dates and value dates?
Processing dates are the dates on which transactions are recorded in a customer’s bank account, excluding interest. Though they can coincide with transaction dates, this depends on several factors. For example, if a customer makes an online payout on a Sunday or public holiday, the bank will not process the transaction until the following day. In this case, the processing date and transaction date are different.
Value dates take into account the calculation of debit or credit interest.
Different value dates
Value dates vary according to the type of transaction.
Value date of a check
For checks deposited in euros, the time between the value date and transaction date cannot exceed one business day (under Article L131-1-1 of the French Monetary and Financial Code).
A customer who writes the same check in euros will have their account debited on the business day before the check processing date. If the account has insufficient funding, the customer can accumulate overdraft charges (or debit interest). It is important to monitor your bank balance to avoid interest charges.
Value date of a payout
Article L133-14 of the French Monetary and Financial Code states the value date for payouts and direct debits is the transaction processing date.
Value date of a cash deposit
The same applies to nonbusiness cash deposits: In principle, the value date is the same as the processing date (i.e., the transaction is recorded on the day the funds are received).
For commercial purposes, the value date of a cash deposit cannot be more than one business day later than the date on which the funds are received.
Value date of an internal payout
For an internal payout (i.e., between two accounts with the same bank), the debit value date is the processing date, while the credit value date is recorded the next day.
Value date for deferred debit card transactions
Deferred debit card transactions are debited at the end of the month with a single value date.
Savings accounts: a special case
The value date in a savings account is the day on which you receive interest on the funds you deposit. Interest is calculated fortnightly, from the 1st to the 15th of the month and from the 16th to the 30th (or 28th, 29th, or 31st).
The value date of a deposit is set to the first day of the following fortnight. For instance, the value date of a deposit made between April 1 and April 15 will be April 16. The value date of a withdrawal is usually set to the last day of the previous fortnight; that means a withdrawal made April 16 will have a value date of April 15.
Why are value dates important?
It’s important to be aware of the different value dates to avoid having a negative balance. If you overdraw your account, the bank might charge you overdraft charges, penalty charges, and even payment incident fees. You can find out more about bank charges in our article on the subject.
To limit your bank charges (particularly penalty charges), choosing an online bank or a no-fee bank account might be best. Most online banks such as BforBank, BoursoBank (formerly Boursorama Banque), Hello bank, Fortuneo, Orange Bank, N26, Revolut, Nickel, and Ma French Bank do not apply penalty charges (or overdraft charges in the case of Nickel). You can compare the bank rates of all French banks using the tool provided by the Consultative Committee for the Financial Sector (CCSF).
Alternatively, Stripe offers a variety of banking services for businesses, including Issuing. With Issuing, you can create, issue, and distribute customized bank cards to your customers. You can also set your own spending limits. Get started with Stripe today and keep your bank charges under control.