Unit 9 Finance and Banking

Electronic Banking What is E-Banking Electronic banking or e- banking gives people electronic access to bank accounts and cash in a fast and paperless way. It can be accessed 24 hours a day. How is this Possible? Electronic funds transfer (EFT) makes electronic baking possible. EFT uses computer networks to transfer money electronically (rather than by check or cash) amoung bank accounts. E-banking allows a person to make withdrawals, deposits, computer or machines (such as a point-of-sale (POS) terminal or automated teller machines (ATMs) or cash machines), rather than in person or via the mail with cash or check Benefits of E- Banking  24 hour service  Fast  No paper  Variety of methods  Convenience  Worldwide access

Types of E-Banking Debit Card ATMs Direct Deposit & Payments Smart Card Stored-Value Card Home Banking Debit Card A debit card is a plastic card which looks like a credit card, but it is connected to the cardholder’s bank account for purchases. When a purchase is made, money is automatically taken from the designated account. It provides access to the EFT system by running a card through an ATM or POS terminal. Some cards are dual function cards, meaning one card performs both ATM and debit functions. Debit cards require using a personal identification number (PIN) to access an account to perform transactions. A PIN confirms that the user of the debit card is authorized to access the account. Debits cards can be used with:  Point-of-sale (POS) terminal. These are located at a store and allows the customer to use a debit card to make purchases.  Automated teller machines (ATMs) or cash machines are electronic computer terminals which offer automated, computerized banking

ATMs After the transaction is finished, a receipt is printed. Keep ATM receipts to compare them with the monthly account statement. Remember to take the ATM card when finished. Automated teller machines (ATMs) or cash machines are electronic computer terminals which offer automated, computerized banking. Most ATMs allow customers to make deposits, cash withdrawals, transfers between accounts, and to check account balances. ATMs can be found in a variety of places including financial institutions, supermarkets, and convenience stores. ATMs offer simple and fast 24 hour access to bank accounts. ATM cards may be provided with bank accounts, but they are not mandatory. ATMs are accessed with an ATM or debit card and a PIN. Customers belonging to a specific financial network may use ATMs free of charge. However, a customer fee may be charged for using another financial institution’s ATM. Fees will vary and be posted on the ATM. To use an ATM, put the card into the card slot and enter the PIN when it is asked for, then perform the transaction. ATM DO’S & DON’TS Never choose a PIN easily associated with the user. For example: birthdays or addresses.  Don’t choose a repetitive or consecutive PIN numbers.  Don’t write the PIN number down in the place where the card is kept.  Do shield screen from onlookers at ATMs when entering PIN.  If something suspicious happens at the ATM, cancel the transaction, take the card, leave, and report it to the authorities.

How To Use ATM / Debit Cards Safely  Sign the back of the debit card and write see ID.  Keep PIN hidden. Do not write it down in the place where the card is kept. Memorize the PIN.  Procect the PIN. This can be done by:  Not telling oters the PIN  Not giving the PIN out over the phone  Shielding the PIN when entering it at an ATM  Change the PIN if it is suspected that someone else knows it  Keep receipts from all transactions and compare them to the monthly account statement. Be ready to transact quickly – have everything ready Write down the card number and financial institution contact information. Store it in a safe place separate from the card. This will be needed if the card is lost or stolen Report a lost or stolen card immediately! Plan activities so it will not be necessary to use the ATM after dark  Use an ATM located inside a supermarket or other place of business  Usa a drive-up ATM. Pull up close to it, lock car doors, and roll up the windows Be aware of the surroundings – if something suspicious happens, leave and report everything unusual to the proper authorities (financial institution, police

Future Trends E-banking is a continually changing market due to technology. Each financial institution has its own e-banking rules and services. Dual-function debit and ATM cards are examples of commonly used services developed in the past few years. Financial institutions are working toward the goal of one card to function as a smart card, debit card, credit card, and an ATM card. People currently use signatures and PINs to access accounts. This may be replaced by codes, voice commands, or eye, fingerprint, and handprint scans. Some universities have already begun using hand scanning than a card for cafeterias and dorm access. Because technology is always changing, it is important to keep up to date with new trends and the safety that goes along with them. Lost or Stolen Cards If an ATM or debit card is lost or stolen, report it to the financial institution immediately! If it is reported within two business days, the cardholder is only liable for $ If the cardholder waits longer to report it missing, they could be liable for up to $500.