Electronic/Online Banking & Bill Pay

1. Electronic/Online Banking & Bill Pay Take Charge of Your Finances

2. Electronic Banking • Electronic Funds Transfer (EFT) • The electronic movement of money that allows electronic banking to be accomplished (not just on the world wide web) • What can be done? • Withdrawals • Bill Payment • Deposits • Through what methods? • Phone • Computer • Automated Teller Machine (ATM) • Point of Sale (POS) Terminal

3. Electronic Banking Benefits of e-banking include: 24 hour access Fast transactions Paperless transactions Convenience Worldwide access

4. Debit Cards • Debit Cards – • Electronically connected to a cardholder’s depository institution account • Can use as “Debit” with PIN • Money is automatically and immediately taken out of account • Can use as “Credit” with signature (still a debit card) • Money will not be taken out of account immediately but in 1-3 days • For added protection: • Sign the back of a debit card with • Your signature and • “see ID”

5. Personal Identification Numbers • Debit cards require the use of PIN (Personal Identification Numbers) • This number is entered at • Automated Teller Machine (ATM) or • Point of Sale Terminal (POS) • This confirms the individual is authorized to access that particular account

6. Automated Teller Machines • Automated Teller Machines (ATMs) - electronic computer terminals which offer automated, computerized banking • Transactions allowed may include: • Deposits • Cash withdrawals • Transfers between accounts • Account balance information • Some ATMs may only allow cash withdrawals

7. ATMs continued • ATMs can be found at various places including: • depository institutions • supermarkets • convenience stores • ATMs are accessed with an ATM or debit card and a PIN • Fees may be charged for ATM use, but will vary depending on the particular depository institution

8. Point of Sale Terminal • Point of Sale (POS) Terminals,are located at stores and allow the customer to use a debit card or contactless payment device to make a purchase • At participating POS terminals customers may request additional cash back

9. Card Act • If there are insufficient funds the transaction will clear but the consumer will be charged approximately $20-30 per transaction • Existing accounts (before August 15, 2010) will be given a written notice option: • New Accounts (on or after July 1, 2010) will be given the choice: • Opt in to the standard overdraft practice • Opt out of the standard overdraft practice • The transaction will be declined, however, no fee will be charged

10. Consumer LiabilityRegulation E • Federal Trade Commission Policy: • Consumer reports to their institution within two days: • Consumer reports to their institution within 60 days • Consumer does not report to their institution within 60 days • Consumer pays no more than $50 • Consumer pays no more than $500 • Consumer liable for all unauthorized transactions

11. Debit Card Point of Sale Terminal Transactions • A debit card’s magnetic strip is swiped through the POS • After the required PIN is provided, the transaction is authorized • If you do a “credit” purchase is under $25.00 a signature may not be required

12. Direct Deposit & Automatic/Recurring Payment • Direct Deposit • Paychecks and benefit checks are directly deposited into a specified depository institution account • Automatic/Recurring Payment - authorizes bills to be paid by a specific depository institution account • This can be done for fixed and flexible expenses. Examples include: • Mortgages, vehicle payments, phone bill, nearly anything

13. Automatic/Recurring Payment & Deposit Direct Payment • An authorization form is signed to allow the transaction to occur automatically • Consumers are responsible for frequently checking their account to ensure that the correct amount was withdrawn or deposited • Sign up with billing information & a password • Pay bill • Print out confirmation or record confirmation number

14. Payroll Cards • Offer an alternative to printing and mailing a paycheck to employees • Function in a similar way as debit cards • They are reloadable • Often linked to a credit card company, allowing employees to withdraw money from the ATM or to purchase goods and services through a POS • An alternative to printing and sending paychecks • Not linked to a depository institution account

15. Check 21 • Check Clearing for the 21st Century Act(Check 21) - Transfers checks electronically and eliminates all float time • This allows a check to be processed as quickly as using a debit card • Float time - time between writing the check to when the money is withdrawn from the depository institution account

16. Pay by Phone • Pay by Phone system allows the consumer to call a vendor with instructions to pay certain bills or to electronically transfer funds between accounts • A written agreement between the consumer and the institution may be required for a transaction to occur

17. Determine Security • The Uniform Resource Locator (URL) ends in “s” which stands for secure • A closed lock to the right of the URL or in the bottom right hand corner of the web browser to indicate a secure site

18. Insecure Practices • Email accounts are not secure • Do not send important information such as: • Social security numbers • Bank account numbers • PIN numbers

19. Consumer Protection • The Federal Reserve Bank of Chicago suggests the following: • Passwords are a combination of letters and numbers • Avoid using passwords that would be easy for someone to guess such as birth dates, phone numbers, names, sequential numbers, etc. • Change passwords once a month • Keep all receipts and compare them to bank statements monthly • Log out of depository institution Web sites immediately after you finish working • Contact the depository institution directly with any questions or concerns