copyright © 2008 delmar learning. all rights reserved. chapter 14 banking

Copyright © 2008 Delmar Learning. All rights reserved.

Chapter 14

Banking


2

Objectives

• Review the learning and performance objectives for this chapter

• By the end of this chapter, demonstrate the procedures in the textbook and the job skills in the workbook


3

Heart of the Health Care Professional

• Service– Knowledge of financial transactions can assist

the patient when payments are made.


4

Financial Institutions

• Bank

• Credit Union

• Savings and Loan Association


5

Financial Institutions

• Receive deposits

• Lend money– Loans, credit lines, financing

• Other services– ATM banking– Safe deposit boxes


6

Accounts

• Savings account– Interest-bearing account– Deposits and withdrawals

• Checking account– Types of checking accounts

• Individual or joint• Business or commercial


7

Accounts

• Checking account– Electronic funds transfer system

• Preauthorized automatic transfers• Employees’ pay

– Pay-by-phone system• Automatic transfer of funds


8

Accounts

• Checking account– Automatic bill paying

• Substitute for check writing

– Point-of-sale banking system• Use of debit card• Instant transfer of funds


9

Checks

• Written order for a bank to pay money

• Concerns three parties:– Drawer/Payer

• Orders bank to pay

– Drawee/Bank• Where money is deposited

– Payee • Receives the money


10

Checks

• Negotiable– Legally transferable by endorsement


11

Checks

• Negotiable– Requirements

• Written• Signed by drawer• Unconditional order for specific amount• Payable to bearer• Payable on demand or definite date• Written to payee


12

Checks

• Types of checks:– Cashier’s – Certified – Counter – Electronic


13

Checks

• Types of checks:– Limited – Money Order– Traveler’s – Voucher – Warrant


14

Checks

• Check fraud prevention– Intent to defraud– Use caution– Ask for identification


15

Checks

• Check endorsements– Figure 14-2


16

Checks

• Check endorsements– Blank endorsement

• Payee signs name on back

– Restrictive endorsement• “For Deposit Only”

– Full endorsement• Third-party check


17

Checks


18

Bank Deposits

• Prepare a bank deposit– Procedure 14-1– Figure 14-3

• Banking by mail

• Direct deposit program

• After-hours deposits


19

Bank Deposit Slip


20

Automated Teller Machines

• Basic rules of precaution– Complete deposit slip ahead of time– Park in well-lit area near walk-up ATM– Pull close to drive-up ATM– Select PIN carefully


21


• Basic rules of precaution– Do not disclose PIN– Protect your PIN– Avoid ATM with new equipment– Retain the receipt


22


• Basic rules of precaution– Keep account information confidential – Use an indoor ATM at night– Never count/display money at the ATM– Never accept offers of help


23


• Basic rules of precaution– Put away cash, card, and receipt– Leave immediately – Know withdrawal limit– Track your account balance– Call 911 in emergency


24

Checkbook Management

• Use the checkbook register– Record debits (checks written)– Record credits (deposits)– Prevent overdraft

• Check writer machine– Imprints amount


25


• Write a check using proper format– Procedure 14-2

• Banking on-line– Internet browser– 24/7 access to services– E-mail communication with bank


26


• Payment disputes– “Paid in full” notation

• Is it really paid in full?• Conditional endorsement

– Stop payment orders


27


• Check-writing errors– Not sufficient funds (NSF)– Misdated checks– Incorrect payee’s name– Missing payer’s signature


28


• Check-writing errors– Variable amounts

• Numerical and written amounts should agree

– Third-party checks• Office policy

– Forged checks


29

Bank Statements

• Compare monthly with register– Deposits– Checks written– Service charges

• Bank statement reconciliation– Example 14-3– Figures 14-5 and 14-6


30

Bank Statements

• Balance differences– Omission of check written– Omission of deposit– Incorrect amount– Math errors

• Reconcile a bank statement– Procedure 14-3


31

Stop and Think

• Determine what types of checks to write– Review the scenarios– Study the differences in types of checks and

determine the type of check you should obtain for payment and state your reason


32

Stop and Think

• Determine accepting payment– Review the scenario– Respond to the situation, stating what type of

check this is, how you would proceed, and the reason for your answer

copyright © 2008 delmar learning. all rights reserved. chapter 14 banking

Documents

delmar learning

money slide

check slide

banking slide

endorsement slide

payee slide

commercial slide

workbook slide