Chapter 8 Financial Institutions and Services 183
information and protected by a personal identi-
fi cation number or PIN. Terminals are located at
fi nancial institutions and other convenient loca-
tions. They are usually available 24 hours a day.
ATM cards are discussed in more detail later in
the chapter.
Direct Deposits or Withdrawals
Customers using this service can arrange
to have paychecks, social security checks, and
other payments deposited directly into their
accounts. They can also pay bills without writ-
ing and mailing checks. Recurring bills—car
payments, insurance premiums, utility bills,
and others—can be automatically paid. Money
can be transferred from a checking to a saving
account each month, creating an automatic savings program. All these
transactions are recorded and included in monthly bank statements. Using
EFT in these ways can make managing money more convenient.
Point-of-Sale Transfers
POS, or point of sale, is the place a transaction was made. A point-of-
sale transfer occurs when you move money from your account to pay for a
purchase. This requires the use of a debit card. First, the merchant scans
your card. Then the amount of the purchase immediately transfers from
your bank account to the merchant’s account. This allows you to purchase
merchandise without checks, cash, or credit.
Online Banking Services
Many consumers fi nd online banking more convenient than tradi-
tional banking. They can conduct banking business from home 24 hours a
day. The bank assigns user identifi cation numbers and security codes that
allow customers to gain access to their accounts online. These codes must
be kept confi dential so no one else can use the accounts. Online banking
allows customers to do the following:
•
check their account balance
•
review their account history
•
arrange and schedule electronic bill payment
•
confi rm any direct deposits, withdrawals, and transfers
If you are interested in online banking, ask your fi nancial institution
whether it is available. This electronic service requires online access and a
checking account.
A number of personal fi nancial software programs take advantage of
online banking. Three highly rated programs are Quicken, Microsoft Money,
8-3
ATMs are a convenient way
to access funds in bank
accounts.