Electronic Banking

1. Electronic Banking Take Charge of Your Finances

2. Electronic Banking

3. Electronic Banking • Benefits of e-banking include: • 24 hour access • Fast transactions • Paperless transactions • Convenience • Worldwide access

4. 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credit cards, • Electronically connected to a card holder’s depository institution account • Money is automatically withdrawn from the designated account • For added protection: • Sign the back of a debit card with • Your signature and • “see id”

5. 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 the individual is authorized to access that particular account

6. Card Act

7. Consumer Liability

8. Automated Teller Machines • Automated Teller Machines (ATMs) - 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

9. 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

10. Point of Sale Terminal • Point of Sale (POS) Terminals,are located at stores and allow the customer to use a debit card to make a purchase • At participating POS terminals customers may request additional cash back

11. Point of Sale Terminal Transactions

12. 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

13. 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to occur • Consumers are responsible for frequently checking their account to ensure that the correct amount was withdrawn or deposited

14. 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 employees 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

15. 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

16. 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

17. 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