Electronic Banking

1. © Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic Banking Funded 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

2. Electronic Banking © Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

3. © Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic Banking Funded 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

4. © Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic Banking Funded 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like credit cards, Electronically connected to a card holder’s depository institution account Money is automatically withdrawn from the designated account For added protection: Sign the back of a debit card with Your signature and “see id”

5. © Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic Banking Funded 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

6. © Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Consumer Liability

7. © Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic Banking Funded 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

8. © Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic Banking Funded 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

9. © Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic Banking Funded 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

10. Point of Sale Terminal Transactions

11. © Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic Banking Funded 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

12. © Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic Banking Funded 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

13. © Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic Banking Funded 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

14. © Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic Banking Funded 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

15. © Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic Banking Funded 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

16. © Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic Banking Funded 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