2.7.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready To Take Charge of Your Finances – Electronic Banking Bonanza Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Discover the Boom in Electronic Banking! Electronic Banking Bonanza

2.7.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready To Take Charge of Your Finances – Electronic Banking Bonanza Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Electronic Banking Bonanza There has been a big boom in electronic banking. Like the great gold rush millions of banks, businesses and people have made the move to electronic banking over the past few years but the topic is still relatively new in the banking industry and to many consumers.

2.7.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready To Take Charge of Your Finances – Electronic Banking Bonanza Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman E-Banking What is electronic banking or e-banking? –Computer networks transfer money electronically among bank accounts People can –Make withdrawals –Deposit money –Pay bills

2.7.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready To Take Charge of Your Finances – Electronic Banking Bonanza Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Why the big BOOM? Benefits to E-Banking 24-hour access Fast No paper Convenient Worldwide access

2.7.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready To Take Charge of Your Finances – Electronic Banking Bonanza Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Types of E-Banking Debit Card ATMs Smart Card Stored-Value Card Home banking

2.7.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready To Take Charge of Your Finances – Electronic Banking Bonanza Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Debit Cards A plastic card, which looks like a credit card Money is automatically taken out of the account when a purchase is made Requires a PIN (Personal Identification Number) to access bank accounts. –Confirms the user of the card is authorized to access the account. –Customer swipes card and then signs a receipt and/or enters a PIN to approve the transaction

2.7.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready To Take Charge of Your Finances – Electronic Banking Bonanza Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman ATM’s Automated Teller Machines (ATM’s) –Electronic computer terminals used to make deposits or take cash out of a bank account ATM machines can be found in various places including banks, supermarkets, convenience stores Must have a PIN to access accounts at an ATM

2.7.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready To Take Charge of Your Finances – Electronic Banking Bonanza Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman ATM’s continued ATMs are usually free for customers using his/her financial institution’s ATM Some ATMs charge a fee for use, financial institutions may also assess a fee if a customer uses another banks ATM instead of theirs If the ATM does charge a fee, the amount will be posted on the ATM screen

2.7.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready To Take Charge of Your Finances – Electronic Banking Bonanza Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman How to Use the ATM Insert ATM card into the slot Enter PIN Perform the desired transaction –deposit or cash withdraw Keep printed receipt to compare with monthly bank statement Remember to take the ATM card when finished

2.7.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready To Take Charge of Your Finances – Electronic Banking Bonanza Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Smart Card Smart card –A card with a built-in computer chip to store prepaid amounts of money Money is electronically loaded and deducted from the card Re-loadable –Can keep adding money to the card to re-use it –Like cash, if stolen it can be used by someone else –May charge fees each time it is used

2.7.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready To Take Charge of Your Finances – Electronic Banking Bonanza Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Stored-Value Card Store-Valued Card –Similar to a smart card but not re-loadable Once the funds are used, the card is thrown away Examples – store gift cards, disposable phone cards

2.7.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready To Take Charge of Your Finances – Electronic Banking Bonanza Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Home Banking Home banking –Banking from the phone or computer Services available: –Check account balances –Transfer money between accounts –Report lost or stolen cards –Order checks –Stop check payments –Apply for loans and credit cards

2.7.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready To Take Charge of Your Finances – Electronic Banking Bonanza Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman E-Banking Safety Sign the back of the cards and write “See ID” Memorize PIN and keep it hidden –Do not write it down where the card is kept –Do not tell others –Shield the PIN with body at ATMs –Do not give it out over the phone or –Change the PIN if it is suspected someone else knows it

2.7.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready To Take Charge of Your Finances – Electronic Banking Bonanza Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman E-banking Safety continued Write down the card number and financial institution contact information –Store it in a safe place separate from the card in case the card becomes lost or stolen Report lost or stolen cards to the financial institution immediately.

2.7.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready To Take Charge of Your Finances – Electronic Banking Bonanza Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Current Trends Check Clearing for the 21 st Century Act (Check 21) Check 21 allows checks to be automatically scanned to transfer funds electronically Withdraws money from checking account almost immediately Must have money in account before writing check

2.7.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready To Take Charge of Your Finances – Electronic Banking Bonanza Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman The Future of E-Banking E-banking is a continually changing market –One card being developed to function as a smart card, debit card, credit card, and ATM card Change from PIN accessed accounts to: –handprint, eye, fingerprint scans or voice commands

2.7.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready To Take Charge of Your Finances – Electronic Banking Bonanza Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Happy Trails Understanding E-Banking can help you manage your finances properly and safely! Any Questions?