1. 17-3 Checks and Payment Methods
Goals:
Describing three types of endorsements
Describing proper check writing procedures
Explaining the bank reconciliation process
Identify many payment methods

2. Opening a Checking Account
Benefits for consumers
Convenience and ease of making payments
Safety to make payments with less risk than using cash
Proof of payment
A record of finances
The First Deposit
A Signature Card is what you need to sign to open a checking account.
It used to verify your signature.
A Joint Account is when two or more people have an account together.
A Deposit Slip is what you fill out when desposit money in a checking account.

3. Types of Endorsements What is an endorsement ?
It’s the written evidence that you received payments or that you transferred your right of receiving payments to someone else.
Three types of Endorsements
Blank Endorsement
Makes a check payable to anyone who has a check.
Full Endorsements
Allows you to transfer a check to another person.
Restrictive Endorsements
Limits the use of the check to the purpose given in the endorsement.

4. Check Writing Procedures
Elements of a check
Drawer is the owner of the check
Payee the person your writing it to.
Drawee the bank
The check register
Check stub is a form attached to the check by a perforated
Writing a check(Seven Steps)
1. write checks in order
2. write the date
3. write the payee’s name
4. write amount of check
5. write the dollar amount in words
6. write purpose of payment
7. sign the checks

5. … Cont Proper Check Writing 1. write checks only on forms
2. write checks in ink
3. write checks of money is available
4. use the current date
5. avoid making checks payable to barrier
6. always fill in the amount
7. void checks on errors
8. record every payments from your checking account.

6. Stopping Payments
This is when you write a notice letting the bank know not to pay a certain check
Because if you don’t that will charge a really high fee
USE THIS PROCESS FOR A GOOD REASON !!!!

7. The Reconciliation Process
Bank Statement Information
Balance at the beginning of the month.
Deposits made during the month
Checks are paid by the bank
Automated transactions are made during the month.
Electronic fund transfer
Service charges for the month
Interest earned on the account
Balances at the end of the month.

8. … Cont Determine Checks Paid Find Differences
This is when you compare the checks you wrote to those that has been paid by the bank
Cancelled checks- are checks that have already been paid
Find Differences
When you keep the records of your checking account
Bank reconciliation – to show how two balances were brought to an agreement.
Reconciling in the bank balance – bringing the balances to an agreement.
Outstanding checks - checks that have not been deducted from the bank statement balance.

9. Calculating Adjusted Balance
Steps that determine the true balance in your account :
Subtract the total of the outstanding checks from the bank statement balance
Add any deposit in transit to the balance statement
Subtract service charges, fees, and automatic payments from the checkbook
Add any interest earned to your check register

10. Other types of Payments
Certified Checks – is a personal check for which a bank has guaranteed payments
Cashier Checks – Is a check that a bank draws on its own funds
Travelers Check - are special forms designed to make payments when away from home.
Money Orders – is a form of payments that order the issuing agency to pay the amount printed on the form to another party.
Types of Money Orders
Bank Money Order – is sold by a bank stating that money is to be paid to a specific person or business.
Postal Money Order – purchased from the US Post Office can be sent safely through the mail .
Express Money Order – is issued by various organization including travelers check companies, travel agencies , and supermarkets
Telegraphic Money Order – involves buying a message to direct a telegraph office to pay a sum of money to a certain person or business.

11. 17-3 Assessment
The first document that must be completed when opening a check account is the
A . Deposit Slip
B. Reconciliation Statement
C. Check Register
D. Signature Card
2. A personal check with guaranteed payment is a
A. Cashier’s Check
B. Money Order
C. Certified Check
D. Traveler's Check