Safe Online Banking and Bill Paying Presented by: CCCS of Rochester Hosted by: The Veteran’s Outreach Center Funded by: The Digital Trust Foundation

Overview Being Smart About Checking Accounts Staying Safe with Online Banking Staying Safe with Online Bill Paying

Being Smart About Checking Accounts

Checking Accounts What to look for: Minimal monthly maintenance fee (under $10) Minimal monthly balance requirement to avoid maintenance fees (no more than $500) No monthly maintenance fee requirement if direct deposit is utilized No fees for using the banks ATMs or other bank’s ATMs Free online banking and automatic bill pay

Checking Accounts Keeping bank costs down: Use direct deposit Take out larger sums at ATMs rather than frequent small sums Buy checks from a mail-order company Talk to your bank to get fees waived

Checking Accounts Keeping bank costs down: (Cont.) Is overdraft protection is right for you? See if the bank charges a penalty if your balance remains below $0 for a certain number of days See if you can combine checking and savings to meet the minimum balance requirement Ask for the NYS required low-cost account

Debit Cards Debit or credit? Money is immediately deducted (no “float”) Some charge for PIN transactions Report lost or stolen cards w/ in 2 days Liability is then limited to $50 Since 2010, banks must offer an opt-in program in place for debit card overdrafts (insufficient funds). You must give your bank permission before it can charge you an overdraft fee for making a purchase with your debit card when you don’t have enough money in your bank account to cover the transaction. If you don’t opt in, then any debit card purchases made from the checking or savings account would be declined if there is not enough money in the account to cover the purchase. However, the bank can still pay your overdraft checks and charge you fee. Recurring debits, such as bill payments, are not covered by the opt in, so you may encounter overdraft fees if your bank clears the transaction.

Debit Cards May be charged 2 fees at ATM’s One from your bank One from the ATM’s owner As of 2010 banks must offer opt-in programs for overdraft Not counting recurring debits Since 2010, banks must offer an opt-in program in place for debit card overdrafts (insufficient funds). You must give your bank permission before it can charge you an overdraft fee for making a purchase with your debit card when you don’t have enough money in your bank account to cover the transaction. If you don’t opt in, then any debit card purchases made from the checking or savings account would be declined if there is not enough money in the account to cover the purchase. However, the bank can still pay your overdraft checks and charge you fee. Recurring debits, such as bill payments, are not covered by the opt in, so you may encounter overdraft fees if your bank clears the transaction.

Check Register Why is it important to use this? $300 00 0 00 2/20 + $300 00 2/20 Opening Deposit $300 00 $300 00 -$29 75 105 2/26 Super Mart $29 75 $270 25 -$15 00 106 3/2 Gasco $15 00 $255 25 - $60 00 3/12 ATM $60 00 $195 25 + $30 00 3/22 Deposit $30 00 $225 25 + $25 00 Deposit and Cash Back 3/23 $25 00 $50 00 $250 25 - 5 00 3/18 Monthly Fee 5.00 $245 25

ChexSystems – National account verification system Lists individuals who may owe due to overdrawn funds Reports remain on file for a maximum of five years Banks and credit unions can remove info sooner One free copy per year: 1-800-428-9623 www.chexhelp.com

Staying Safe With Online Banking

Online Banking Advantages: Great for spotting fraud and seeing when things “clear”.  Available 24 hours a day, seven days a week. Helpful if you’re out of town Faster transaction processing Ability to cross reference different accounts Money management tools

Online Banking Disadvantages: Start-up may take time Can’t always rely upon entirely for balance updates (Still have to know when items “clear”) Need to be careful to save transaction receipts

Online Banking Password tips: Don’t save on your computer Keep in a memorable place Use something from a phrase you know Example: “It’s a small world after all.” = i$wAA5

Watch out for Phishing Be alert for spam messages. Do not reply to emails that request financial information Do not reply to emails from unrecognized senders Phishing attempts are not likely to be personalized. Do not open any links in suspicious emails, instant messages, or chat-room messages.

Watch out for Phishing 2. Only communicate personal information over the phone or through a secure website. "Https://" instead of  Http://. " Initiate the call or call a number located on your bank statement.

Staying Safe With Online Bill Paying

Online Bill Pay Some services will only work with payees with whom they can interface electronically Make sure you have secure access Be careful which bills you pay automatically Some services will only work with payees with whom they can interface electronically. If all your bills are covered by their list, that's fine. If not, you're still going to have to pay some bills manually. Some services, such as Paytrust.com, require you to change your billing address to that of the service provider. The service you choose should help you notify billers of the change. This type of online bill-payment service is a good option for those who are frequently out of town for long periods, when they might miss an important bill in the mail. If you already use a software package like Quicken or Microsoft Money to track your finances, the service you choose should be compatible with that software to avoid extra bookkeeping. For example, Paytrust.com is not compatible with Quicken. Make sure you have a secure access. Public networks, such as hotel business centers or wireless centers, don't give you complete data privacy. Be careful which bills you pay automatically. Experts suggest only making automatic-payment arrangements for bills that are the same amount every month. That way, you don't have to contend with payment errors. The service should guarantee accurate and on-time payments. If not, the late fee should be covered by the service. All services have this feature. If the late delivery is their fault, they pay the late fee. Check to see how far back you can access your bills and payment information online. Check for access fees for older account information. Report generation (i.e. tables, charts and/or graphs) helps you track where your money is going. Choose a well-established service. PC World suggests looking at sites that are stable (that are owned by Fortune 500 companies or are trusted brands) and offer 24/7 customer service. Online bill payment isn't where you want to go with a company that has no track record. Lastly, many companies allow customers to pay their bills online through the company's website with no additional fees. If you have only a few bills each month, paying them online at the company's website might be the simplest solution.

Online Bill Pay The service should guarantee accurate and on-time payments Check to see how far back you can access your bills and payment information online Report generation (i.e. tables, charts and/or graphs) helps you track where your money is going Some services will only work with payees with whom they can interface electronically. If all your bills are covered by their list, that's fine. If not, you're still going to have to pay some bills manually. Some services, such as Paytrust.com, require you to change your billing address to that of the service provider. The service you choose should help you notify billers of the change. This type of online bill-payment service is a good option for those who are frequently out of town for long periods, when they might miss an important bill in the mail. If you already use a software package like Quicken or Microsoft Money to track your finances, the service you choose should be compatible with that software to avoid extra bookkeeping. For example, Paytrust.com is not compatible with Quicken. Make sure you have a secure access. Public networks, such as hotel business centers or wireless centers, don't give you complete data privacy. Be careful which bills you pay automatically. Experts suggest only making automatic-payment arrangements for bills that are the same amount every month. That way, you don't have to contend with payment errors. The service should guarantee accurate and on-time payments. If not, the late fee should be covered by the service. All services have this feature. If the late delivery is their fault, they pay the late fee. Check to see how far back you can access your bills and payment information online. Check for access fees for older account information. Report generation (i.e. tables, charts and/or graphs) helps you track where your money is going. Choose a well-established service. PC World suggests looking at sites that are stable (that are owned by Fortune 500 companies or are trusted brands) and offer 24/7 customer service. Online bill payment isn't where you want to go with a company that has no track record. Lastly, many companies allow customers to pay their bills online through the company's website with no additional fees. If you have only a few bills each month, paying them online at the company's website might be the simplest solution.

Auto Deductions Available online and electronically Set up by providing your bank account information to the creditor Account and routing number Helpful for making due dates (credit cards, etc.) Harmful if your account balances get close to $0 Use cautiously and have a reminder system

Do’s and Don’ts Make sure that it’s a legitimate institution Read the “about us” section and verify

Do’s and Don’ts

Q & A