Take Charge of Your Finances Electronic Banking Take Charge of Your Finances © 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 Funds Transfer (EFT) Electronic Banking Electronic Funds Transfer (EFT) The electronic movement of money that allows electronic banking to be accomplished What can be done? Withdrawals Bill Payment Deposits Through what methods? Phone Computer Automated Teller Machine (ATM) Point of Sale Terminal (POS) © 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 © 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like credit cards, Electronically connected to a card holder’s depository institution account Money is automatically withdrawn from the designated account For added protection: Sign the back of a debit card with Your signature and “see id” © Family Economics & Financial Education –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 © 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 According to the Federal Trade Commission, a consumer is held liable for any unauthorized charges under the following conditions: If the depository institution within two business days: The consumer is held responsible for no more then $50 If the institution is not notified within the first two business days, but within the first 60 days: The consumer is held liable for no more then $500 If the institution is notified after the first 60 days: The consumer is held liable for no more than the amount of the unauthorized transfers © 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 © 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 © 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 © 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 Transactions A debit card’s magnetic strip is swiped through the POS After the required PIN is provided, the transaction is authorized If the purchase is under $25.00 a signature may not be required

Direct Deposit & Payment 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 © 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 © 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 © 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 © 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 © 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 © 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