# Cut-Off Times > Cut-Off Times means the predetermined moment during a business day after which transactions are considered as received the subsequent business day **Term:** Cut-Off Times **Last updated:** 2026-07-29 ## Definition ## What Cut-Off Times Means in a Contract Cut-Off Times is a contractual mechanism that sets a fixed point in a business day beyond which incoming transactions, payments, or notices are deemed received the following business day rather than the day they were actually sent. This concept is common in finance, payments, and service agreements where timing determines value, priority, or compliance with a deadline. The clause exists because businesses need a clear, administrable line between one processing cycle and the next. Without it, disputes could arise over whether a payment made at 4:59pm should count as same-day or next-day, particularly where downstream obligations, such as interest accrual or settlement, depend on that distinction. Contracts referencing Cut-Off Times often tie the concept to a specific time zone, banking day, or system availability window, so that all parties share a common understanding of when the deadline actually falls. ## How Cut-Off Times Is Defined or Measured Most agreements define Cut-Off Times by reference to a specific clock time, such as 3:00pm on a business day, combined with a named time zone to avoid ambiguity across jurisdictions. Some contracts instead tie the cut-off to an operational event, such as the closing of a payment processing batch or the end of a settlement window operated by a bank or clearing system. Measurement can also depend on the method of submission. A payment instruction delivered through an automated system may be time-stamped electronically, while a manual submission, such as a fax or emailed notice, might be measured by receipt confirmation rather than transmission time. This distinction matters because a transaction sent before the stated cut-off but received or processed after it may still fall into the next business day category. - Fixed clock time tied to a named time zone - Operational cut-off linked to batch processing or clearing cycles - Receipt-based measurement for manual or non-automated submissions ## Where Cut-Off Times Appears in Agreements Cut-Off Times provisions are frequently found in banking and payment services agreements, where they determine whether a wire transfer or direct debit is executed same-day or rolled into the next cycle. They also appear in supply and logistics contracts, particularly in