MRS. RUIZ-EMMONS Business math fall 2017 3.2 ELECTRONIC BANKING MRS. RUIZ-EMMONS Business math fall 2017

goals RECORD ELECTRONIC BANKING TRANSACTIONS FIND ACCOUNT BALANCE WHEN BANKING ELECTRONICALLY

ELECTRONIC BANKING 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 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.

PARTS OF A CHECK MAGNETIC INK CHARACTER RECOGNITION, OR MICR FORM AT THE BOTTOM OF DEPOSIT SLIPS AND CHECKS. EACH BANK HAS ITS OWN UNIQUE IDENTIFICATION, OR ROUTING NUMBER. INDIVIDUALS CAN ALSO TRANSFER FUNDS ELECTRONICALLY WHEN THEY USE AN AUTOMATIC TELLER MACHINE, OR ATM.

ROUTING NUMBER & ACCOUNT NUMBER

BANK CARD/debit cards MANY PEOPLE USE A SPECIAL FORM OF EFT CALLED A DEBIT CARD. DEBIT CARDS ALLOW YOU TO PAY FOR YOUR PURCHASES WITHOUT USING CASH. AT MANY BANKS, THE ATM CARD IS ALSO THE DEBIT CARD.

RECORDING ELECTRONIC TRANSACTIONS WHEN YOU USE A DEBIT CARD YOU GET A RECEIPT OF THE TRANSACTION. SAVE THE RECEIPT AND RECORD THE PAYMENT OR CASH WITHDRAWAL IN YOUR CHECK REGISTER. YOU ALSO GET A RECEIPT WHEN YOU USE AN ATM MACHINE. BANK STATEMENTS WILL LIST ALL TRANSACTIONS FOR THE MONTH.

EXAMPLE 1 WAN-YING KUO’S CHECKING ACCOUNT BALANCE OF $512.45 ON APRIL 4TH. OVER THE NEXT THREE DAYS SHE HAD THESE ELECTRONIC TRANSACTIONS: A DIRECT DEPOSIT OF HER WEEKLY PAY OF $782.50 ON 4/5, ATM CASH WITHDRAWL OF $100 ON 4/6, AND A DEBIT CARD CLOTHING PURCHASE OF $90.27 ON 4/7. WHAT WAS HER FINAL CHECK REGISTER BALANCE?

SOLUTION 4/4 PREVIOUS BALANCE $512.45 DEBITS DEPOSITS BALANCE 4/4 PREVIOUS BALANCE $512.45 4/5 DIRECT DEPOSIT $782.50 $1,294.95 4/6 ATM-WITHDRAWAL -$100 $1,194.95 4/7 DEBT(CLOTHING) -$90.27 $1,104.68

CHECK YOUR UNDERSTANDING A. FRED BEGAN THE DAY WITH A $782.88 BALANCE IN HIS CHECKING ACCOUNT. DURING THE DAY HE USED HIS DEBT CARD TO PAY $85 FOR CAR REPAIRS AND $86.54 FOR A CLOTHING PURCHASE. FRED ALSO WITHDREW $50 FROM HIS ACCOUNT AT AN ATM MACHINE. WHAT WAS THE BALANCE OF FRED’S CHECKING ACCOUNT AT THE END OF THE DAY? PAGE 92

SOLUTION $782.88 BEGINNING BALANCE - $85.00 CAR REPAIRS -$86.54 CLOTHING PURCHASE -$50.00 CASH WITHDRAWAL --------------------------------------------------------------------------------------------- $561.34

B. IN ONE DAY KATRINA WOLL DEPOSITED HER $890 B. IN ONE DAY KATRINA WOLL DEPOSITED HER $890.50 PAYCHECK AT AN ATM AND WITHDREW $200 IN CASH. SHE ALSO MADE TWO DEBIT CARD PURCHASES FOR $12.87 AND $118.94. IF SHE STARTED THE DAY WITH A BANK BALANCE OF $1,248.40, WHAT WAS HER BALANCE AT THE END OF THE DAY? PAGE 92

SOLUTION $1,248.40 BEGINNING BALANCE $890.50 PAYCHECK DEPOSIT $2,138.90 SUBTOTAL -$200 CASH WITHDRAWL -$12.87 DEBIT CARD PURCHASE -$118.94 DEBIT CARD PURCHASE -------------------------------------------------------------------------------------------------------------- $1, 807.09