USING THE ATM AND E-CASH CARDS
unit 5 notes
Terms in this set (9)
The automated teller machine (ATM) has opened up new avenues of banking.
1.When you receive your ATM card from a bank, you can get cash from your account from practically any ATM in the country.
2.As trivial as that sounds, it was not many decades ago when your money stayed in your state.
3. If you didn't have checks with you, you could not get money from your home bank.
4.Now, this seems like a distant memory.
5.Whether you are in Portland, Pittsburgh, or Pasadena, you can access your money.
Your ATM card is the key to your account.
1.You will be given a code number or asked to create a password which will be registered with the bank.
2.It is important that you guard both your card and your password/number.
3.If anyone gains access to both, you could lose all the money in your account.
4.This is a reality that occurs everyday in the United States.
5.If you should lose your card, you will have to be re-assigned a new card and create a new password.
6.In many cases, a bank may charge you for the loss of the card.
An ATM gives you 24 hour access to your money.
1. In most cases, you can withdraw money not only from your checking account, but also from all the different checking and savings accounts you have with your bank.
2.There is a limit on how much you may withdraw; some banks allow you a total of $200 or $300 per day.
3.ATMs can be located in convenience marts, hotels, banks, and even fast-food places such as McDonald's .
4.You can also deposit money using ATMs.
5.Just like a regular teller, the ATM is versatile in handling the different transactions of finance.
6. You are not limited to withdrawals - you can make deposits as well.
7.Most automated teller machines can take deposits and give cash back immediately.
8.Some ATMs will deposit your checks, even your paycheck, and give you a portion, like $100, back instantly even if you don't have $100 in the account.
9.People also make loan payments through their ATM.
10.By using a depository envelope at the machine's location, a person could make all of his bank loan payments through an ATM.
11.A receipt is printed to verify the payment that was made.
12.The one concern is that an ATM may process deposits much slower than a regular teller would.
13.In some cases the processing can take a day, so if a person wishes to see an immediate credit to his account for a payment or a bill, he should avoid an ATM.
The versatility of ATMs makes them an attractive addition to a fast-paced lifestyle.
1. In case of a low balance, many ATMs allow you to transfer funds between each and every checking or savings account that you have tied to your bank ATM card.
2.For example, if you knew that your checking balance was low and you still had some outstanding checks which might be in danger of not having enough funds, you could transfer enough money from your savings to cover all the checks.
3.Information is available as well.
4.Perhaps you need to know how much money you have before you write out a check for your mom's birthday present.
5. If you just want information on your checking account, simply press the Inquiry button at the proper screen on the ATM.
6.You will receive instant account balance information.
7.The speed of transactions can be a great advantage to you, but the ease with which money is made available to you may also be a temptation to spend it too freely.
8.Beware of the dangers of the ATM's "financial freedom!"
Be careful of the surcharges on automated teller machines.
1. These surcharges are additional fees imposed on consumers who use ATMs to withdraw cash.
2.Banks normally levy ATM surcharges only on customers of other banks.
3.Originally, ATMs provided withdrawal services without a charge.
4.Even today, not all ATMs have surcharges, but it is getting more difficult to find such surcharge-free ATM's.
5.For example, say you have a checking account at Mountain Bank, but you need to withdraw $20 using an ATM owned by Wild Westbank. Mountain Bank is probably going to charge you a fee for using a "foreign" ATM and the fee will show up on your next monthly statement.
6.Your bank charges you because it must pay an "interchange fee" to the ATM owner.
7.The cost is usually 50 cents to cover the transaction.
8.ATM owners, however, have started to collect extra fees besides the withdrawal amount.
9.These surcharges are usually around $1, but they can be as high as $10; most states have no rules to set limits.
10. If Wild Westbank, who is the ATM owner, levies a $1.50 surcharge, then your $20 withdrawal will appear on your receipt as $21.50, even though all you received was $20.
11.Add that to the charge that your bank charges you for the interchange fee and you may be paying more than $2 for a $20 withdrawal.
12. If you only withdrew money once a week, you would still be charged over $8 just for the privilege of getting your own money.
You can avoid those surcharges that drain your account.
1. First of all, use ATM's owned by your own bank.
2.Stay away from ATM's that are in convenience stores and restaurants because they are usually the ATM's that impose high surcharges.
3.Withdraw extra cash earlier and avoid the ATM withdrawal completely.
4. You can get ATM withdrawals without surcharges in some cases.
5.You may have made a purchase with your credit or debit card at a store and were asked by a store clerk if you wish to have cash above the amount of your purchase.
6.Usually the withdrawal will not include a surcharge.
7.Again, you can save money by avoiding ATM usage for withdrawals.
8.By using traveler's checks on trips, using personal checks or credit cards when shopping, you can avoid that extra cost against you.
An ATM can be helpful when traveling to a foreign country.
1.An ATM card can help you get a favorable exchange when you travel abroad.
2.ATM cards are based on the wholesale rate offered by major banks.
3.Even with ATM transaction fees figured in, you still pay up to 5% less than you would pay if you had to exchange cash or travelers checks.
4.ATM cards are also versatile throughout many foreign countries.
5.Your ATM card can withdraw local currency in over 100 countries, and new locations are being installed every month.
6.There are some warnings, however: although access to your money may be easy, it is wise to remember that most foreign ATMs may limit your transactions to your primary account, and may limit your withdrawal amounts.
7. Also be aware that six-digit ATM personal identification numbers are accepted at many ATMs in Europe, but might not be elsewhere.
8. In some foreign ATMs only a four-digit PIN will suffice, and many keypads include only numbers, making it difficult if you have memorized a PIN password instead of numbers.
9.The restaurant cashier swipes the card through a slot and you hear some beeps as some of the card's value disappears into the cash register.
10.You leave with your friend, knowing that nobody can steal your ID numbers, since the card you purchased gives no information about your personal accounts.
E-cash is a growing reality in our country.
1.You walk into a restaurant with a friend and offer to pay for his meal.
2.After you finish up a great spaghetti dinner, you pay with an electronic cash card, the same one that will pay for your taxi ride to the concert, a bouquet of flowers for Mother's Day and a small sack of groceries.
3.You do not have to remember a personal identification number or even show an ID, because you have an e-cash card.
4.An e-cash card eliminates the worry of whether you are over your credit limit because you've pre-paid for the card.
5.The restaurant cashier swipes the card through a slot and you hear some beeps as some of the card's value disappears into the cash register.
6.You leave with your friend, knowing that nobody can steal your ID numbers, since the card you purchased gives no information about your personal accounts.
7.The concept of e-cash is already a reality in America today.
8. Pre-paid telephone cards and subway tickets are just a couple of examples of the e-cash that is available for purchase in our country.
The growth of the Internet has made "e-cash" possible.
1.People can now buy bit-based products over the World Wide Web.
2.A bit-based product is software, music, or a video.
3.If you purchased documents, information, magazines or, electronic newspapers over the Internet, you purchased a bit-based product.
4. People buy these and other goods and services by using a credit card, but many folks are leery of the lack of security whenever they give out their credit card number over the Internet.
5.Could thousands of people illegally tap into their credit line?
6.E-cash may be the answer, because a pre-paid card offers security.
7.Bit-based cash, commonly known as e-cash, can be spent and transferred over the Internet or on Smart Cards without anyone knowing who the buyer is.
8.A Smart Card (an e-cash card) may soon make it possible for a person to hook up to an electronic network of banks, for example, and be able to download cash, make transfers and payments, and perform other banking functions without running the threat of losing their financial privacy.
9.Although America is slow to accept the e-cash card for many types of business, the benefits are becoming obvious.
10.E-cash would be especially useful in international trade, as an internationally accepted e-cash card would be recognized around the world.
11.Internet commerce-based transactions with this "smart card" could help consumers avoid costly tariffs and high costs if they comparatively shop on the Internet with e-cash.
12.Month by month we see the e-cash card becoming more readily accepted.
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