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Chapter Five

Chapter Five. Bank Services. Section 5.1. Electronic Banking, Checking Accounts and Check Registers. Traditional vs Electronic Banking. Traditional – Paper checks and check register. Electronic – allows customers to make financial transactions online. Features of Electronic Banking. ATM

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Chapter Five

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  1. Chapter Five Bank Services

  2. Section 5.1 Electronic Banking, Checking Accounts and Check Registers

  3. Traditional vs Electronic Banking • Traditional – Paper checks and check register. • Electronic – allows customers to make financial transactions online.

  4. Features of Electronic Banking • ATM • Direct Deposit/Payment • EFT (Electronic Funds Transfer) • Pay by Phone • Personal computer banking • Debit card • Prepaid card • Smart card • Point of Sale (POS)

  5. Types of Checking Accounts • 1. Personal checking account • Used by individuals • 2. Business checking account • Often include monthly service charges based on account balance or # of checks written

  6. Parts of a check (p 176)

  7. Parts of a Deposit Slip (p 177)

  8. Monthly Service Charges • Typical charges may be: • Find the monthly service charge for a business that has an average balance of $1850 and has written 58 checks.

  9. Endorsements • On the back of the check: • 1. Restricted endorsement: Specifies “for deposit only” along with signature • 2. Blank endorsement: signature only. • 3. Special endorsement: used to transfer check to another person/company. “Pay to the order of ___” along with signature.

  10. After processing, cancelled check is returned with: • 1. Endorsement • 2. Date and bank where deposited. • 3. Date and bank where debited (deducted) from payer’s account. • NOTE: checks are typically no longer returned, but an electronic image is stored with the bank!

  11. Parts of a check stub (p 179)

  12. EX (p 179) • Use the check stub to find the balance forward. Check number 3502 is made out on November 15 to City Hall for $273.28 for garbage collection. The balance brought forward was $6750.17 and deposits of $1876.22 and $879.65 have been made since that last check was written. An ATM withdrawal of $200 was also made

  13. Parts of a check registerRecord everything! • Subtract from balance: • Debits • Withdrawals • Checks written • Add to balance: • Credits • Deposits • EX: P 182 #20

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