Transactions

Terms in this set (16)

Available Balance
The balance of an account less any hold, uncollected funds, and restrictions against the account.
Bank Statement
Periodically the bank provides a statement of a customer's deposit account. It shows all deposits made, all checks paid, and other debits posted during the period (usually one month), as well as the current balance.
Automated Clearing House
A computerized facility used by member depository institutions to electronically combine, sort, and distribute inter-bank credits and debits. ACHs process electronic transfers of government securities and provided customer services, such as direct deposit of customers' salaries and government benefit payments (i.e. social security, welfare, and veterans' entitlements), and preauthorized transfers.
Automated Teller Machine (ATM)
A machine, activated by a magnetically encoded card or other medium, that can process a variety of banking transactions. These include accepting deposits and loan payments. providing withdrawals, and transferring funds between accounts.
Automatic Bill Payment
A checkless system for paying recurring bills with one authorization statement to a financial institution. For example, the customer would only have to provide one authorization form/letter/document to pay the cable bill each month. The necessary debits and credits are made through an Automated Clearing House (ACH).
Check
A written order instructing a financial institution to pay immediately on demand a specified amount of money from the check writer's account to the person named on the check or, if a specific person is not named, to whoever bears the check to the institution for payment.
Checking Account
A demand deposit account subject to withdrawal of funds by check.
Check Truncation
The conversion of data on a check into an electronic image after a check enters the processing system. Check truncation eliminates the need to return canceled checks to customers.
Debit Card
A debit card allows the account owner to access their funds electronically. Debit cards may be used to obtain cash from automated teller machines or purchase goods or services using-point-of-sale systems. The use of a debit card involves immediate debiting and crediting of consumers' accounts. See also ATMs and EFTs.
Deposit Slip
An itemized memorandum of the cash and other funds that a customer presents to the bank for credit to his or her account.
Direct Deposit
A payment that is electronically deposited into an individual's account at a depository institution.
Electronic Banking
A service that allows and account holder to obtain account information and manage certain banking transactions through a personal computer via the institution's website on the internet.
Federal Deposit Insurance Corporation (FDIC)
A government corporation that insures the deposits of all national and state banks that are members of the Federal Reserve System.
Minimum Balance
The amount of money required to be on deposit in an account to qualify the depositor for special services or to waive a service charge.
Overdraft
When the amount of money withdrawn from a bank account is greater than the amount actually available in the account, the excess is known as an overdraft, and the account is said to be overdrawn.
Personal Identification Number (PIN)
Generally a four-character number or word, the PIN is the secret code given to credit or debit cardholders enabling them to access their accounts. The code is either randomly assigned by the bank or selected by the customer. It is intended to prevent unauthorized use of the card while accessing a financial service terminal.
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