Session 13 - FIN 441 Bank Management & Electronic...

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Bank Management & Electronic Banking FIN 441
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Session 13 Electronic Fund Transfer System
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Electronic Fund Transfer (EFT) Many financial institutions use ATM or debit cards and Personal Identification Numbers (PINs) for this purpose Electronic Fund Transfer (EFT), uses computer and electronic technology as a substitute for checks and other paper transactions. Definition: EFTs are initiated through devices like cards or codes that let you, or those you authorize, access your account.
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Electronic Fund Transfer (EFT) Automated Teller Machines or 24-hour Tellers are electronic terminals that let you bank almost any time. To withdraw cash, make deposits, or transfer funds between accounts, you generally insert an ATM card and enter your PIN. Components of EFT: Direct Deposit lets you authorize specific deposits, such as paychecks and Social Security checks, to your account on a regular basis. You also may pre-authorize direct withdrawals so that recurring bills, such as insurance premiums, mortgages, and utility bills, are paid automatically.
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Electronic Fund Transfer (EFT) Pay-by-Phone Systems let you call your financial institution with instructions to pay certain bills or to transfer funds between accounts. You must have an agreement with the institution to make such transfers. Personal Computer Banking lets you handle many banking transactions via your personal computer. For instance, you may use your computer to view your account balance, request transfers between accounts, and pay bills electronically Components of EFT:
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Electronic Fund Transfer (EFT) Point-of-Sale Transfers let you pay for purchases with a debit card, which also may be your ATM card. The process is similar to using a credit card, with some important exceptions. Electronic Check Conversion converts a paper check into an electronic payment at the point of sale or elsewhere. In a store, when you give your check to a store cashier, the check is processed through an electronic system that captures your banking information and the amount of the check. Once the check is processed, you're asked to sign a receipt authorizing the merchant to present the check to your bank electronically and deposit the funds into the merchant's account. Components of EFT:
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Money is anything that is commonly accepted by a group of people for the exchange of goods, services, or resources. Every country has its own system of coins and paper money. In the beginning, people bartered. Barter is the exchange of a good or service for another good or service, a fish for a bag of beans. Metal objects were introduced as money around 5000 B.C. By 700 BC, the Lydians became the first in the Western world to make coins. Countries were soon minting their own series of coins with specific values. Money:
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This note was uploaded on 04/22/2011 for the course BBA FIN 441 taught by Professor Dewanmostafiz during the Fall '10 term at BRAC University.

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Session 13 - FIN 441 Bank Management & Electronic...

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