1.7.2.g1 © family economics & financial education – revised may 2009 – financial...
TRANSCRIPT
1.7.2.G1
© Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic BankingFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Electronic Banking
Take Charge of Your Finances
1.7.2.G1
Electronic Banking
© Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic BankingFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.7.2.G1
© Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic BankingFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Electronic Banking
• Benefits of e-banking include: – 24 hour access– Fast transactions– Paperless transactions– Convenience – Worldwide access
1.7.2.G1
© Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic BankingFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Debit Cards• Debit Cards –
– Plastic cards, which look like credit cards,
– Electronically connected to a card holder’s depository institution account
– Money is automatically withdrawn from the designated account
• For added protection:– Sign the back of a debit card with
• Your signature and • “see id”
1.7.2.G1
© Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic BankingFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Personal Identification Numbers
• Debit cards require the use of PIN (Personal Identification numbers)
• This number is entered at – Automated Teller Machine (ATM) or – Point of Sale Terminal (POS)
• This confirms that the individual is authorized to access that particular account
1.7.2.G1
© Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic BankingFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Consumer Liability
1.7.2.G1
© Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic BankingFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Automated Teller Machines
• Automated Teller Machines (ATM’s) - electronic computer terminals which offer automated, computerized banking
• Transactions allowed may include:– Deposits– Cash withdrawals– Transfers between accounts– Account balance information
• Some ATMs may only allow cash withdrawals
1.7.2.G1
© Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic BankingFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
ATMs continued• ATMs can be found at various places
including: – depository institutions– supermarkets– convenience stores
• ATMs are accessed with an ATM or debit card and a PIN
• Fees may be charged for ATM use, but will vary depending on the particular depository institution
1.7.2.G1
© Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic BankingFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Point of Sale Terminal
• Point of Sale Terminal (POS), is located at stores and allows the customer to use a debit card to make a purchase
• At participating POS terminals customers may request additional cash back
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Point of Sale Terminal Transactions
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© Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic BankingFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Direct Deposit & Payment
• Direct Deposit– Paychecks and benefit checks are directly
deposited into a specified depository institution account
• Direct Payment - authorizes bills to be paid by a specific depository institution account– This can be done for fixed and flexible
expenses. Examples include:• Mortgages, vehicle payments, phone bill
1.7.2.G1
© Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic BankingFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Direct Payment & Deposit
• An authorization form is signed to allow the transaction to occur
• Consumers are responsible for frequently checking their account to ensure that the correct amount was withdrawn or deposited
1.7.2.G1
© Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic BankingFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Payroll Cards
• Offer an alternative to printing and mailing a paycheck to employees
• Function in a similar way as debit cards • They are reloadable • Often linked to a credit card company, allowing
employee’s to withdraw money from the ATM or to purchase goods and services through a POS
• An alternative to printing and sending paychecks • Not linked to a depository institution account
1.7.2.G1
© Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic BankingFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Check 21
• Check Clearing for the 21st Century Act (Check 21)- Transfers checks electronically and eliminates most or all float time – This allows a check to be processed as
quickly as using a debit card• Float time - time between writing the
check to when the money is withdrawn from the depository institution account
1.7.2.G1
© Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic BankingFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Pay by Phone
• Pay by Phone system allows the consumer to call a vendor with instructions to pay certain bills or to electronically transfer funds between accounts – A written agreement between the
consumer and the institution may be required for a transaction to occur
1.7.2.G1
© Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic BankingFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Review
• Benefits include 24-hour access and convenience
• Debit cards offer the benefits of a credit card without building debt
• Direct deposits offer convenience to customers who have checks directly deposited into their account automatically
• Direct payment allows bills to be paid electronically