Chapter 3, Section 3 ELECTRONIC BANKING

I can… Record electronic banking transactions. Calculate account balance needed to make online payments.

How are transactions processed? All banks process transactions electronically. This helps to reduce the amount of paper transactions. When banks use computers to transfer funds (deposits/checks) from person to person or bank to bank, the process is called “Electronic Funds Transfer” or EFT.

How else are funds transferred electronically? When you use an ATM (automated teller machine)! ATM’s allow people to: Deposit money Withdraw money Check your account balance Transfer money between accounts (from savings to checking) For your protection you’re given a PIN (personal identification number) that must be entered in the ATM before your transaction is processed.

What’s the difference between an ATM and debit card? An ATM card can only be used at an ATM machine. A debit card can be used to pay for purchases.

How else is money transferred electronically? EFT’s are also used to pay monthly bills. Your bank transfers the funds from your account to the account of your bill provider. Some employers use EFT to pay their employees by transferring their paycheck directly into their account. This is called a direct deposit. P. 94, example 1 Check your understanding A

What’s so great about online banking? Online banking allows you to: Access your account 24 hours a day, 7 days a week. Transfer money between accounts Bills sent electronically instead of mail Pay bills Reorder checks Send messages to the bank Look at account history P. 96, example 2 Check your understanding C & D

Assignment P. 98, 5-7 P. 99, 9-12