Transcript CHAPTER 3 Banking Services

3.2
Electronic Banking
GOALS
 Record electronic banking transactions
 Find account balance when banking
electronically
BUSINESS MATH
© Thomson/South-Western
Lesson 3.2
Slide 1
Electronic Banking
 All banks use computers to process
transactions electronically.
 Electronic banking allows bank customers to
use telephones, computers, and other
technologies in place of paper transactions
such as writing checks and making loan
payments.
BUSINESS MATH
© Thomson/South-Western
Lesson 3.2
Slide 2
Electronic Funds Transfer
 Banks use computers to transfer deposits and
checks, or “funds,” from person to person and
bank to bank.
 This process is called Electronic Funds
Transfer, or EFT.
BUSINESS MATH
© Thomson/South-Western
Lesson 3.2
Slide 3
Customer Account Numbers and
Bank Identification Number
 Banks print the account numbers of
customers and the bank identification number
in Magnetic Ink Character Recognition, or
MICR, form at the bottom of deposit slips and
checks.
BUSINESS MATH
© Thomson/South-Western
Lesson 3.2
Slide 4
Automatic Teller Machine
 Individuals can also transfer funds
electronically when they use an Automatic
Teller Machine, or ATM.
 By using an ATM card issued by your bank,
you can withdraw or deposit money, see
account balances, or make transfers between
your accounts.
BUSINESS MATH
© Thomson/South-Western
Lesson 3.2
Slide 5
Personal Identification Number
 A Personal Identification Number, or PIN, that
is known only to you is entered into the ATM
before your transaction is processed.
 The PIN provides protection against
unauthorized use of your ATM card.
BUSINESS MATH
© Thomson/South-Western
Lesson 3.2
Slide 6
Paying Bills with EFT
 EFTs may also be used to pay your monthly
bills, such as utility bills.
 You can instruct your bank to transfer funds
automatically each month from your bank
account to the account of your utility provider.
 No checks are written or mailed.
BUSINESS MATH
© Thomson/South-Western
Lesson 3.2
Slide 7
Direct Deposit
 Some companies use EFT to pay their
employees by transferring funds directly into
their employees’ bank accounts without
writing any checks to the employees.
 This is called direct deposit.
BUSINESS MATH
© Thomson/South-Western
Lesson 3.2
Slide 8
Debit Card
 Many people use a special form of EFT called
a debit card.
 Debit cards allow you to pay for your
purchases without using cash.
BUSINESS MATH
© Thomson/South-Western
Lesson 3.2
Slide 9
Using a Debit Card
 You insert your debit card into a special
computer terminal at stores.
 The computer system subtracts the amount of
each purchase automatically from your
checking account and adds the same amount
to the store’s bank account.
 You may also use your debit card to withdraw
cash from your account.
 Fees may be charged for using this card.
BUSINESS MATH
© Thomson/South-Western
Lesson 3.2
Slide 10
Recording Electronic Transactions
 When you use a debit card you get a receipt
of the transaction.
 Save the receipt and immediately record the
payment or cash withdrawal in your check
register.
 Record the payment by writing the word “Debit”
and adding a short description as well.
 Record an ATM withdrawal by writing ATM-WD.
 Record an ATM deposit by writing ATM-DEP.
BUSINESS MATH
© Thomson/South-Western
Lesson 3.2
Slide 11