1. 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

2. 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

3. 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

4. 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

5. 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

6. 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Money is automatically withdrawn from the account when a purchase is made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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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
© 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

16. 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

17. 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

18. 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