Electronic Banking 7.3

EFT  Electronic Funds Transfer Banks ability to move money from one account to another by computer  Advantages to Banks (Cost Savings)  to Consumers (convenience)  Quicker  Less expensive than paper transactions  Reduce chance of losing money  Creates an electronic record of transactions

EFT  Made through ATMs DD Debit Cards Online Banking

ATM’s  Automated teller machine A means of transferring money electronically  MUST have a PIN (Personal Identification Number) ATM Transactions:  Deposits  Withdrawals Costs

Using ATM’s  Be responsible  Be aware of surroundings

Uses of Electronic Funds  Direct Deposit Employers deposit employees paycheck in account  Debit Cards (Check cards) Electronic checks  Funds subtracted from account immediately

Automatic Bill Payments  By Phone Dial number and make transaction  Confirmation number assigned to transaction  Automatic Bill Payments Money deducted from account automatically  Easy Pass

Online Banking  Register with bank Pay bills on line Check account transactions

EFTA  Electronic Funds Transfer Act Consumer Protection Law  Banks required to inform customers of ETFs  Banks must offer a receipt to verify each transaction Consumers Responsibilities  Notification of lost card within 2 days ($50)  Two days plus ($500)  Two months—all losses

Try These 1. EFT is a movement of funds by electronic message from one computer to another 2. A PIN—Personal Id Number Prevents others from accessing your accounts

Try These 3. Advantages of ATMs --Convenient for consumer --Cost effective for banks (no tellers needed)

Try These 4. Use ATM carefully Be aware of surroundings Hide PIN when entering number Avoid unsafe places

Try These 5. A debit card is a card that allows funds to be transferred electronically from your checking account to a store’s account. 6. Automatic bill paying—your bank makes payments directly to specific businesses

Try These 8. ETFA protects consumers All fees associated with Electronic Funds Transfer must be stated A receipt must be offered for all transactions Consumers must notify bank if card is stolen