Electronic/Online Banking & Bill Pay Take Charge of Your Finances

Electronic Funds Transfer (EFT) Electronic Banking The electronic movement of money that allows electronic banking to be accomplished (not just on the world wide web) Electronic Funds Transfer (EFT) Withdrawals Bill Payment Deposits What can be done? Phone Computer Automated Teller Machine (ATM) Point of Sale (POS) Terminal Through what methods? 2

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

Debit Cards Debit Cards – Electronically connected to a cardholder’s depository institution account Can use as “Debit” with PIN Money is automatically and immediately taken out of account Can use as “Credit” with signature (still a debit card) Money will not be taken out of account immediately but in 1-3 days For added protection: Sign the back of a debit card with Your signature and “see ID”

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

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

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

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

Card Act If there are insufficient funds the transaction will clear but the consumer will be charged approximately $20-30 per transaction Existing accounts (before August 15, 2010) will be given a written notice option: New Accounts (on or after July 1, 2010) will be given the choice: Opt in to the standard overdraft practice Opt out of the standard overdraft practice The transaction will be declined, however, no fee will be charged

Consumer Liability Regulation E Federal Trade Commission Policy: Consumer reports to their institution within two days: Consumer reports to their institution within 60 days Consumer does not report to their institution within 60 days Consumer pays no more than $50 Consumer pays no more than $500 Consumer liable for all unauthorized transactions

Debit Card 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 you do a “credit” purchase is under $25.00 a signature may not be required

Direct Deposit & Automatic/Recurring Payment Paychecks and benefit checks are directly deposited into a specified depository institution account Automatic/Recurring 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, nearly anything

Automatic/Recurring Payment & Deposit An authorization form is signed to allow the transaction to occur automatically Consumers are responsible for frequently checking their account to ensure that the correct amount was withdrawn or deposited Direct Payment Sign up with billing information & a password Pay bill Print out confirmation or record confirmation number

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

Check 21 Check Clearing for the 21st Century Act (Check 21) - Transfers checks electronically and eliminates 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

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

Determine Security The Uniform Resource Locator (URL) ends in “s” which stands for secure A closed lock to the right of the URL or in the bottom right hand corner of the web browser to indicate a secure site Changed the picture so that the magnified picture of the lock and https were bigger

Insecure Practices Email accounts are not secure Do not send important information such as: Social security numbers Bank account numbers PIN numbers

Consumer Protection The Federal Reserve Bank of Chicago suggests the following: Passwords are a combination of letters and numbers Avoid using passwords that would be easy for someone to guess such as birth dates, phone numbers, names, sequential numbers, etc. Change passwords once a month Keep all receipts and compare them to bank statements monthly Log out of depository institution Web sites immediately after you finish working Contact the depository institution directly with any questions or concerns Added “Reserve” to “Federal Bank of Chicago” Added 2nd bullet point