Checking Key Terms

Check Cashing Store

A business that cashes checks and gives the customer cash in exchange for a fee for the service

Credit Card

A card that allows the holder to make purchases without cash by borrowing money

Debit Card

A card that is directly connected to your checking account; it enables you to conduct ATM transactions and to make purchases instead of using cash or writing a check

Prepaid Card

A card that is loaded with a specific cash amount before you use it (Example: Think cards sold at local pharmacy or the grocery stores)

Minimum Balance

A certain amount of money that must be kept in an account as required by that particular financial institution

Money Order

A certificate that allows the stated payee to receive cash on-demand, usually issued by governments and banking institutions

Cancelled Check

A check that has been paid or cleared by the bank. It will appear on your bank statement

Outstanding Check

A check that has been written but has not yet been cashed or deposited by the payee

Voided Check

A check with "VOID" written across it so that it can no longer be used

Online Bill Pay

A consumer banking technology that allows you to schedule and make payments over the internet

Outstanding Deposit

A deposit that has been made but not yet added to the person's bank account

Person-to-Person Payment

A digital payment method that allows you to transfer funds from your bank account to that of another person. (Example- Zelle, PayPal or Venmo)

Signature Card

A document that financial institutions use to authenticate a customer's signature when opening new accounts. It includes information such as name, birth date, etc.

Overdraft Fee

A fee charged to your account when it lacks the funds to cover a withdrawal, but the bank allows the transaction to go through anyway

Interest

A fee paid to you for keeping your money in an account OR a fee charged to you for a loan or credit card

Deposit Slip

A form you fill out to credit money to your account when you make a deposit

Checkbook

A handy portfolio that holds your check register, checks, deposit slips, receipts, and other records of ATM/debit card transactions

Overdraft Protection

A loan banks offer to their customers when they try to withdraw more funds than they have in their account, usually for a fee and with interest

Mobile Deposit

A mobile banking tool that allows you to deposit checks to your bank account using your mobile device

Bank Statement

A monthly document prepared by your financial institution which shows all the transactions related to your account

Maintenance Fee

A monthly fee that some banks charge to provide access to checking or savings accounts

Low Balance Alert

A notification that lets you know if the balance in your checking account goes below a set amount

Unusual Activity Alert

A notification that lets you know when there is suspicious activity with your account

Check Register

A record that allows you to keep track of checks you have written, ATM/debit card transactions, as well as deposits and withdrawals

Debit

A sum of money deducted FROM your account

Credit

A sum of money deposited INTO an account

Unbanked

A term used to describe a person who does not use or does not have access to traditional financial services

Underbanked

A term used to describe a person who has a bank account, but often relies on alternative financial services such as check cashing

Check

A written, dated, and signed order to the bank that tells it to pay a definite sum of money to a payee

Digital Wallet

An application that runs on mobile devices. It securely stores your payment information and passwords and allows you to pay for items without needing your physical cards.

Direct Deposit

An automatic electronic deposit of net pay to an employee's designated bank account

Wire Transfer

An electronic communication that moves funds from an account in one bank to an account in a different bank instantly. It is a useful option to send money securely when the two parties are not in the same geographic location.

ATM

Automatic Teller Machine. Allows a person to manage a bank account holder's funds through actions such as withdrawing or depositing money, viewing account balances, etc.

Deposit

Money you put into your account

PIN

Personal Identification Number needed to use an ATM card

FDIC Insurance

Protection provided by the Federal Deposit Insurance Corporation; protects the deposits of customers against loss up to $250,000 per account

Balance

The amount of money you have in your bank account

Payee

The person to whom the check is made payable

Reconcile

To compare your bank's monthly account statement with your own records of activity for the same account

Endorse

To sign the back of a check made out to you so it can be cashed or deposited

Postdate

To write a future date on a check