44 checkendorsements checksarenegotiableinstruments

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Unformatted text preview: uire consumers to sign up for ATM/debit card overdraft rights, otherwise charge will be denied Fees range from $30­50 if enrolled 40 Other Payment Methods Certified check Personal check with guaranteed payment. Cashier’s check Check of a financial institution you get by paying the face amount plus a fee Money order Purchase at financial institution, post office, store Traveler’s check Sign each check twice Electronic traveler’s checks ­ prepaid travel card with ability to get local currency at an ATM 41 Why Banks Reconciliations Are Important You should always know how much money is in your bank account Detects math errors and unknown charges Did that auto deposit paycheck make it?? Helps avoid bouncing checks, protects your credit Banks make errors, would you know it??? Errors must be reported promptly by law Follow­up on deposits in transit and outstanding checks 42 Bank Reconciliations To reconcile the bank statement: Balance per bank statement + Deposits in transit not clearing ­ Outstanding checks not clearing = Correct balance in your checkbook 43 Bank Reconciliations To reconcile your checkbook Balance per checkbook + Deposits not posted (interest) + or – Errors in checks noted on bank statement + or – Any math errors in checkbook = Reconciled balance in your checkbook Both balances should tie USE SOFTWARE LIKE QUICKEN!!!!! 44 Check Endorsements Checks are negotiable instruments Checks can be signed over to another person Restrictive endorsements provide protection For deposit only Be careful of special endorsements for promotional items, for example Cell phone promotional check...
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