BANKING UNIT

FLOAT TIME

• amount of time between when an individual writes/submits a check and when the bank receive instructions to move funds

PAY BY PHONE

• Mobile payment; paying by an mobile device

DEBIT CARD

• Plastic payment card that provides card holders electronic access to their bank account

PIN

• Personal identification number
• Security requirement to access bank account via debit card

POINT OF SALE TERMINAL

• A computerized replacement for a cash register

RECURRING PAYMENT

• Payments are handled automatically with any reminders being delivered when needed/receipts sent are each payment is processed

PRIVACY POLICY

• Statement/legal document
• Discloses the ways a party gathers, uses, and manages a client's data

REGULATION E

• Outlines the rules/procedures for EFTs & outlines guidelines for those who sell and issue debit cards

ONLINE BANKING

• Internet banking that allows consumers to complete transactions w their bank from a PC/phone

ONLINE PAYMENT

• Allows consumers to send money from one account to a vendor

STOCK

• The capital raised by a business/corporation through the issue & subscription of shares

LOAN

• Something that is borrowed, especially a sum of money that is expected to be paid back with interest

MORTGAGE

• The charging of personal property as security for a debt, onsite on that it will be returned on payment within a certain period

SAVINGS ACCOUNT

• An account in which money normally is deposited to earn interest

INTEREST RATE

• The % used annually to calculate the total interest gained/lost from an account supplied by a depository institution

CREDIT UNION

• Non-profit cooperative institutions that often charger lower fees and loan rates than other depository institutions

SAVING & LOAN ASSOCIATIONS

• Focus on providing loans/mortgages to customers as well as offering both savings & checking accounts

FEDERAL DEPOSIT INSURANCE CORPORATION

• Federal government agency which insures federally chartered commercial banks/SLAs against loss

NATIONAL CREDIT UNION ADMINISTRATION

• Provides insurance protection for credit unions

COMMERCIAL BANKS

• Offer wide variety of services: checking/savings accounts, loans, credit cards, investments & financial counseling

ELECTRONIC BANKING

• Allows 24 hrs access to move money electronically in a fast/paperless way

DEPOSITORY INSTITUTION

• Businesses which offer multiple services in banking and finance

BOUNCING A CHECK

• A check that cannot be processed because the writer has insufficient funds

INTEREST EARNING ACCOUNTS

• An amount earned by a company on its interest bearing bank accounts or other investments

CHECMING ACCOUNTS

• Paperchecks/debit cards that are used to withdraw money from the account to pay for things

CHECK 21

• A current trend in EFT that is changing banking dramatically

BANKA PROFIT BY...

• Using depositor's money to make loan

UNSAFE BANKING PRACTICES

• Authorizing payment through email

DIRECT DEPOSITS

• Allows paycheck/benefit checks to be directly deposited into a specific depository institution account

DIRECT PAYMENTS

• Authorize bills to be paid by a specified depository institution account

INTEREST

• The amount of $ that is gained/lost when accessing services offered by a depository institution

RISK OF LOSS

• Used to determine which party should be responsible for occurring to products after a service transaction has been completed prior to delivery

FEDERAL RESERVE BANK

• Part of the central banking system in the United States