1 Common Payment Services - EFT Electronic Funds Transfer (EFT) Banking method in which computers and electronic technology is used as a substitute for checks and other paper forms of banking Electronic Funds Transfer Options: »Automated Teller Machines (ATM’S) »Pay-By-Phone Systems »Direct Deposit or Withdrawals Paychecks, automated bill payment »Point-of-Sale Transfers Debit Cards »Automatic Deposits and Payments

Checking Accounts Used by business and individuals to manage cash transactions Check- –A preprinted form issued by the financial institution –Account holder directs withdrawals by writing checks –Parties to a Check Payee, Drawee, Drawer

3 Parties to a Check Melanie Paige Charles Paige Main Street Raleigh, NC /1034 July 16, 2010 Pay To the Order of _____Donnie Tatum______________________$ _One hundred and 50/ DOLLARS State Credit Union For _______________ Charles Paige 2131/1034: Drawer’s Name & Address Joint Account Payee Check Date Drawer’s Signature - Last item completed on check! Bank Name - Drawee Check Number ABA # MICR Banking #s Memo

Record Keeping IMPORTANT: Keep a current balance in check register or on check stub by: Recording deposits Recording withdrawals –Checks written –EFTs –Bank Fees

Common Payment Services Special Checks –Travelers check Requires 1 st signature when check issued Requires 2 nd signature when check used Go to link below and read about traveler’s checks and how they work.

Traveler’s Checks Traveler’s Checks – Draft drawn by a well-known financial institution on itself or its agent, used when traveling Go to website smlive/dsm/dom/us/en/personal/cardm ember/additionalproductsandservices/ giftcardsandtravelerscheques/travelers chequesandforeigncurrency.do?vgnext oid=6d17fc671492a110VgnVCM defaad94RCRDhttp://www212.americanexpress.com/d smlive/dsm/dom/us/en/personal/cardm ember/additionalproductsandservices/ giftcardsandtravelerscheques/travelers chequesandforeigncurrency.do?vgnext oid=6d17fc671492a110VgnVCM defaad94RCRD Write questions 1-3 on notebook paper. Use the website to answer the questions. Click on Learn More about Travelers Checks. 1.List the 4 steps in how to use travelers checks. 2.List 5 ways Travelers Checks mean Peace of Mind. 3.What is the benefit of Cheques for Two?

Certified Check A certified check is written by a bank for you from your bank account to give to someone. It's guaranteed funds that the bank reserves from your account. Go to website: s.com/supertips/what- is-a-certified- check.html s.com/supertips/what- is-a-certified- check.html Write Certified Check questions 1-5 from next slide on notebook paper. Use the website to answer the questions.

Certified Check Questions 1.Who issues a certified check? 2.Give two examples of when you might need a certified check? 3.Why can’t a certified check bounce? 4.Why does a creditor require a certified check? 5.Do banks charge a fee for a certified check?

Cashier’s Check Sample Cashier’s Check – A check the bank draws on itself

Common Payment Services Money Order Draft issued by a post office, bank, express company, or telegraph company for use in paying or transferring funds for the purchaser Orders issuing agency to pay amount printed on form to another party Types of Money Orders: –Postal money order –Express money order –Telegraphic money order Go to website _order _order Write questions 1-5 from next slide on notebook paper. Use the website to answer the questions.

Money Order Questions 1.For what amount of money is a money order issued? 2.When was the Postal Order system established? 3.What is a concern about using money orders? 4.Who usually sells money orders in the United States? 5.Name 5 security features of a postal money order.

Common payment services Opening a checking account –Signing a signature card is the first step Writing a check for payment Endorsing a check for deposit –An endorsement allows the payee to cash the check, deposit the check or transfer payment of the check to someone else. –Different types of endorsements: Blank Full Restrictive

13 Check Endorsements Definition: Signature on the back of a check What does an endorsement do? Allows payee to cash, deposit or transfer payment of the check to someone else Provides proof that the payee cashed or transferred payment of the check to someone else How should a check be endorsed? Endorser (payee who is signing) should sign the check the way it is on the front of the check and if the name is misspelled, correct the signature directly up under the first endorsement