1. Take Charge of Your Finances
Electronic Banking
Take Charge of Your Finances

2. Electronic Funds Transfer (EFT)
Electronic Banking
The electronic movement of money that allows electronic banking to be accomplished
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?

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

4. 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Money is automatically withdrawn from the designated account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”

5. 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

6. Card Act
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
If there are insufficient funds the transaction will clear but the consumer will be charged approximately $20-30 per transaction
Opt out of the standard overdraft practice
The transaction will be declined, however, no fee will be charged

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

8. 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

9. 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

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

11. Point of Sale Terminal Transactions
If the purchase is under $25.00 a signature may not be required
After the required PIN is provided, the transaction is authorized
A debit card’s magnetic strip is swiped through the POS

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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