A credit memo arises when, in case of returning goods to a buyer for any reason, for example, if its description does not correspond to the declared characteristics, the seller offers not to return the money, but provides discounts on other goods or their free delivery within the amount paid earlier.
A credit memo is similar to a refund, but you do not get money, but a discount on the goods or services of the company
In the case of a bank, this may be a money transfer in the form of mortgage interest repayments on your banking account or a refund from a previous bank charge, for example, for your banking account servicing fee.
Opposite, a CIBC debit memo arises when, for example, the bank undertakes to charge an additional fee for the subsequent use of the service/availability of funds, if there was not enough money on your account to pay for the current banking account servicing.
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