What is Counter Credit – Everything You Need to Know

Learn what is counter credit. What it is used for and the pros and cons of using this system versus other methods with your banks and money. This is everything you need to know about counter credit

The banking system can be very confusing at times. It can be frightening as well if you don’t recognize some abbreviations written on the banking slips. So, tell us, when was the last time you correctly checked your bank statement? Well, most of us don’t do that. And so, a massive part of this system remains hidden and unknown. 

Even if you check the bank statement once a month, you will find many things there. But what happens when you suddenly see something you don’t recognize? Say, for example, what is counter credit? It is a system that is still very prevalent but unknown to many. 

If you have seen “counter credit” on your statement, here is what it means. Keep reading ahead to know more about what is counter credit and where it stands in the modern-day banking system.  

What is Counter Credit?

what is counter credit?

Counter credit is also known as counter deposit, and it has the same purpose as its name implies. Counter deposit is an in-person cash deposit process in a given bank. In this method, you have to walk into the bank and hand over the money to a cashier sitting at the counter. 

In simple terms, it is the most direct way to deposit cash into a bank account. In counter deposit, the receiver receives the money almost instantly as you credit it into his bank account.  While it may sound old-fashioned, it has a lot of benefits too. Further in this article, we have elaborated that for you.

Counter credit still enjoys great popularity among certain groups of audiences. So, when you see that money has been credited into your account through “counter credit,” you should know that someone has deposited the money using this method. 

Of course, the method might seem to be old-fashioned, but it is very much in use, even today. Let’s move ahead and know why people still use the method of counter credit to transfer money to a bank account. Also, we will learn about the pros and cons of the counter credit system. 

Why Do People Still Use Counter Credit to Deposit Money?

You may often find “counter credit” on your bank statement, which means that someone has credited the money manually through a bank. Well, it may seem odd to this generation, but it still happens. There are a lot of people who find counter credit more comfortable than online money transactions. 

There can be many reasons behind it, but most of these people belong to the older generation. Hence, technology becomes a wee bit heavy for them to follow. Apart from that too, there is a matter of confidence and trust as well. Here we have mentioned all probable reasons behind the use of counter credit even today.

  1. Comfortable for Old Generation

Continuing our discussion, older generations are most likely to use counter credit. The reason is quite evident given the fact that they are not as comfortable with technology as Gen Z. And you can’t blame them for that. Therefore, the banks still have the option of counter deposits.

Anyone who does not want to use the online money transaction can walk into a bank and deposit money in person. For the older generation, this process seems simpler and more trustworthy. As a result, counter credit or counter deposit are still very popular among the elderly around us. 

  1. Trusted

When it comes to handling money, trust is a big issue. You wouldn’t give it to someone you don’t trust. Online money transactions used to pose a lot of problems in the beginning. Many of us have lost money during this process. 

When you opt for counter credit, you have fewer chances. Here, two factors are at play. The first one is that, in counter deposit, you deposit the money at the bank. And the second one is that you get to deal with real people. The person sitting at the counter is a trusted authority. You can know their name and contact in case of any problem.

3. Less Technical Nuances 

Thanks to technology, we live simpler lives. Particularly during the pandemic, the use of technology has been commendable. The internet has brought the world together, washing away the borders of politics. But it can also falter at times, and your money can be involved. 

While transferring money online, it can get stuck. There are also a lot of scammers who always try to lure you into traps and steal your money. With the counter credit, such fears are less likely to arise. When you go to the bank, you give the money to the cashier, who then credits it to the specified account.

4. Hassle-Free

Of course, there is this matter of going to the bank and then filling a form, but still, counter credit is a hassle-free process for many. In a counter-credit system, you will not have to learn the digital way of sending money. The latter can be complex for the ones who are not well-versed digitally. 

Instead, in counter credit, you can go to the bank and deposit your money. It is the same old process that has been there from the beginning. Also, you don’t have to get used to the modern digital process of sending money.

Advantages of Counter Credit

what is counter credit?
  • Reassuring

Banking services require the most assurance. It is mainly served in the form of a physical transaction. When you do a physical transaction at the bank, you can interact with real people, unlike when you do an online transaction. When you go to the bank, you give your money to the person at the counter. In this way, people get a stronger sense of reliability and assurance when dealing with money in its physical form.  

  • Well-known

The counter credit or counter deposit system in banks is a very well-known and practiced sphere of banking transactions. Despite the fact that online transactions are a relatively new and modern way of doing business, counter credit has been around for a long time. People know how to do counter credit, and they think it is secure.

  • Less Risky

Counter credit is a less risky way of transferring money. Many people feel uncomfortable using ATMs or other digital means since one can quickly lose their money due to some malfunctioning. But, when it comes to counter credit, there is no such technical malfunctioning. Hence, your money is secured in that way. 

  • Manual Process

Counter credit is a manual process. You participate from the very beginning to the end. Also, you can easily contact the authority if you are facing some trouble. People from the older generation like to see their work being done manually. Thus, counter credit is still very much popular and in use. 

Disadvantages of Counter Credit

what is counter credit?
  1. Old-fashioned

The very first disadvantage of the counter credit system is that it is an old-fashioned method of transaction. In this era of digital transactions and ATMs, using the counter credit is confusing and boring. Also, the pandemic has shown us well the importance of digitalization. So, it is only a matter of some more years before it gets outdated. 

  1. Time-consuming

Not everyone lives near a bank. If you want to avail counter credit facility, you will have to go out of your home and to the bank. Then there comes the long queue where you may have to stand for hours. On the contrary, online transactions are the fastest way of transferring funds. 

  1. Sometimes Problematic 

Going to the bank and then availing the service is not always smooth as it seems. There can be a lot of problems, including server errors. Also, protests and other related issues can hamper banking hours. Again, under situations like this pandemic, banking systems go through a tough time. These are the events that can cause trouble for you too. 

For example, suppose you are in a hurry to send money somewhere. But, then it’s either a holiday or some other occasion for which the bank is closed. So, if you rely on counter credit, you won’t be able to transfer money. On the other hand, online or ATM transactions are faster and can be opted 24/7. 


The banking system is one of the most important sectors of a nation. With the development of technology, this sector has also developed tremendously. But, development is not something that excludes the old methods entirely. There are people who are comfortable with those old-fashioned ways of money transfer. 

Although the present generation has become cashless, some people still prefer to deal with cash. And for them, counter credit is one of the best banking methods.

So, that was all on what is counter credit. Now, when you see some amount has been credited through “counter credit,” there is nothing to fear. It only means that someone has walked into the bank and transferred the money manually. 

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