Information on Types of Electronic Banking © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

Introduction What is electronic banking or e-banking? Electronic access to bank accounts and cash 24 hour access Moves money without paper How is this possible? Electronic Funds Transfer (EFT) EFT uses computer networks to transfer money electronically among bank accounts © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

EFT continued People can Free or fees of $3 - $10 per month Make withdrawals Deposit money Pay bills Free or fees of $3 - $10 per month Accessed through ATMs, the internet, and debit cards © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

Benefits of E-banking 24-hour access Fast No paper Variety of methods Convenience Worldwide access © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

Types of E-Banking Debit Card ATMs Direct Deposit and Payment Smart Card Stored-Value Card Home banking © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

Debit Cards Debit Card A plastic card, which looks like a credit card, connected to a person’s bank account Money is automatically withdrawn from the account when a purchase is made Customer specifies which account is linked to the card © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

Debit Cards Debit cards can be used with: Automated Teller Machines (ATM’s), which are electronic computer terminals that offer automated, computerized banking Point of Sale Terminal (POS), which is located at a store and allows the customer to use a debit card to make purchases © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

Automated Teller Machines ATMs or cash machines Electronic computer terminals which offer automated, computerized banking 24-hour access to personal bank accounts Receive an ATM card from financial institution ATMs can be found at various places Examples: financial institutions, supermarkets, convenience stores © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

ATMs continued Transactions allowed may include: Deposits Cash withdrawals Transfers between accounts Account balance information Some ATMs may only allow cash withdrawals Need a PIN to access accounts at an ATM New ATMs may read a person’s face, fingerprint, or the eye’s iris to confirm identity © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

ATMs continued ATMs are usually free of charge for customers using his/her financial institution’s ATM May be charged fees at ATMs of other financial networks (around $2.00) In addition, may be charged by own financial institution to use another network’s ATM Fee will be posted on the ATM © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

How to Use the ATM Insert ATM card into the slot Enter PIN Perform the desired transaction Keep printed receipt to compare with monthly bank statement Remember to take the ATM card when finished © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

ATM Do’s & Don’ts Never choose a PIN easily associated with the user Example: birthday, address, phone number Don’t choose repetitive or consecutive PINs Don’t write PIN down where the card is kept Shield screen from onlookers Leave if something suspicious happens Cancel transaction, take the card, leave, and report it to local law enforcement and financial institution © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

Direct Payment Direct Payment Authorize bills to be paid by a specific bank account Can be done for fixed and flexible expenses Mortgages, vehicle payments, phone bill Customer signs an authorization form to allow the business to deduct the funds from the account each billing period © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

Lost or Stolen ATM / Debit Cards Report immediately to financial institution If reported within 2 business days, cardholder only liable for $50.00 After 2 business days, cardholder can be liable for up to $500.00 © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

ATM / Debit Cards Safety Sign the back of the card and write see ID Keep PIN hidden Do not write it down where the card is kept Memorize the PIN Protect the PIN Do not tell others Shield the PIN with body at ATMs Do not give it out over the phone or via e-mail © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

Safety continued Change the PIN if it is suspected someone else knows it Be ready to transact business quickly Have everything ready for the transaction Write down the card number and financial institution contact information Store it in a safe place separate from the card in case the card becomes lost or stolen © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

Safety continued Plan activities so it will not be necessary to use the ATM after dark Use an ATM located inside a supermarket or other place of business Use a drive-up ATM Keep car doors locked Be aware of the surroundings If anything suspicious happens, leave and report anything unusual © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

THE END © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman