1. Copyright © 2008 Delmar Learning. All rights reserved. Chapter 14 Banking

2. Copyright © 2008 Delmar Learning. All rights reserved. 2 Objectives Review the learning and performance objectives for this chapter By the end of this chapter, demonstrate the procedures in the textbook and the job skills in the workbook

3. Copyright © 2008 Delmar Learning. All rights reserved. 3 Heart of the Health Care Professional Service –Knowledge of financial transactions can assist the patient when payments are made.

4. Copyright © 2008 Delmar Learning. All rights reserved. 4 Financial Institutions Bank Credit Union Savings and Loan Association

5. Copyright © 2008 Delmar Learning. All rights reserved. 5 Financial Institutions Receive deposits Lend money –Loans, credit lines, financing Other services –ATM banking –Safe deposit boxes

6. Copyright © 2008 Delmar Learning. All rights reserved. 6 Accounts Savings account –Interest-bearing account –Deposits and withdrawals Checking account –Types of checking accounts Individual or joint Business or commercial

7. Copyright © 2008 Delmar Learning. All rights reserved. 7 Accounts Checking account –Electronic funds transfer system Preauthorized automatic transfers Employees’ pay –Pay-by-phone system Automatic transfer of funds

8. Copyright © 2008 Delmar Learning. All rights reserved. 8 Accounts Checking account –Automatic bill paying Substitute for check writing –Point-of-sale banking system Use of debit card Instant transfer of funds

9. Copyright © 2008 Delmar Learning. All rights reserved. 9 Checks Written order for a bank to pay money Concerns three parties: –Drawer/Payer Orders bank to pay –Drawee/Bank Where money is deposited –Payee Receives the money

10. Copyright © 2008 Delmar Learning. All rights reserved. 10 Checks Negotiable –Legally transferable by endorsement

11. Copyright © 2008 Delmar Learning. All rights reserved. 11 Checks Negotiable –Requirements Written Signed by drawer Unconditional order for specific amount Payable to bearer Payable on demand or definite date Written to payee

12. Copyright © 2008 Delmar Learning. All rights reserved. 12 Checks Types of checks: –Cashier’s –Certified –Counter –Electronic

13. Copyright © 2008 Delmar Learning. All rights reserved. 13 Checks Types of checks: –Limited –Money Order –Traveler’s –Voucher –Warrant

14. Copyright © 2008 Delmar Learning. All rights reserved. 14 Checks Check fraud prevention –Intent to defraud –Use caution –Ask for identification

15. Copyright © 2008 Delmar Learning. All rights reserved. 15 Checks Check endorsements –Figure 14-2

16. Copyright © 2008 Delmar Learning. All rights reserved. 16 Checks Check endorsements –Blank endorsement Payee signs name on back –Restrictive endorsement “For Deposit Only” –Full endorsement Third-party check

17. Copyright © 2008 Delmar Learning. All rights reserved. 17 Checks

18. Copyright © 2008 Delmar Learning. All rights reserved. 18 Bank Deposits Prepare a bank deposit –Procedure 14-1 –Figure 14-3 Banking by mail Direct deposit program After-hours deposits

19. Copyright © 2008 Delmar Learning. All rights reserved. 19 Bank Deposit Slip

20. Copyright © 2008 Delmar Learning. All rights reserved. 20 Automated Teller Machines Basic rules of precaution –Complete deposit slip ahead of time –Park in well-lit area near walk-up ATM –Pull close to drive-up ATM –Select PIN carefully

21. Copyright © 2008 Delmar Learning. All rights reserved. 21 Automated Teller Machines Basic rules of precaution –Do not disclose PIN –Protect your PIN –Avoid ATM with new equipment –Retain the receipt

22. Copyright © 2008 Delmar Learning. All rights reserved. 22 Automated Teller Machines Basic rules of precaution –Keep account information confidential –Use an indoor ATM at night –Never count/display money at the ATM –Never accept offers of help

23. Copyright © 2008 Delmar Learning. All rights reserved. 23 Automated Teller Machines Basic rules of precaution –Put away cash, card, and receipt –Leave immediately –Know withdrawal limit –Track your account balance –Call 911 in emergency

24. Copyright © 2008 Delmar Learning. All rights reserved. 24 Checkbook Management Use the checkbook register –Record debits (checks written) –Record credits (deposits) –Prevent overdraft Check writer machine –Imprints amount

25. Copyright © 2008 Delmar Learning. All rights reserved. 25 Checkbook Management Write a check using proper format –Procedure 14-2 Banking on-line –Internet browser –24/7 access to services –E-mail communication with bank

26. Copyright © 2008 Delmar Learning. All rights reserved. 26 Checkbook Management Payment disputes –“Paid in full” notation Is it really paid in full? Conditional endorsement –Stop payment orders

27. Copyright © 2008 Delmar Learning. All rights reserved. 27 Checkbook Management Check-writing errors –Not sufficient funds (NSF) –Misdated checks –Incorrect payee’s name –Missing payer’s signature

28. Copyright © 2008 Delmar Learning. All rights reserved. 28 Checkbook Management Check-writing errors –Variable amounts Numerical and written amounts should agree –Third-party checks Office policy –Forged checks

29. Copyright © 2008 Delmar Learning. All rights reserved. 29 Bank Statements Compare monthly with register –Deposits –Checks written –Service charges Bank statement reconciliation –Example 14-3 –Figures 14-5 and 14-6

30. Copyright © 2008 Delmar Learning. All rights reserved. 30 Bank Statements Balance differences –Omission of check written –Omission of deposit –Incorrect amount –Math errors Reconcile a bank statement –Procedure 14-3

31. Copyright © 2008 Delmar Learning. All rights reserved. 31 Stop and Think Determine what types of checks to write –Review the scenarios –Study the differences in types of checks and determine the type of check you should obtain for payment and state your reason

32. Copyright © 2008 Delmar Learning. All rights reserved. 32 Stop and Think Determine accepting payment –Review the scenario –Respond to the situation, stating what type of check this is, how you would proceed, and the reason for your answer