What does T-bar or KC indicate on a check?

• A. It designates a known customer
• B. It indicates a transit item
• C. It is a routing code
• D. It denotes a foreign bank

Answer: (A)

T-bar or KC is a mark used to identify a known customer. When a teller or processing system sees this, it signals that the check writer is already a recognized customer of the bank, often backed by established account details and signatures on file. This designation helps speed up verification and posting because the bank can rely on the existing relationship, sometimes allowing for quicker processing and different hold practices compared to items drawn on unknown customers.

In other words, KC stands for Known Customer, and the T-bar serves a similar purpose as a quick visual cue. It’s not about where the item is from (transit) or a routing code, and it’s not indicating a foreign bank.