Banking Unit Test Review

third party check

This is a check that is made payable to you, and then you give to someone else (the third party). You need to endorse it specifically on the back "Pay to the order of _______", then sign your name and account number.

What is Venmo and what is it used for?

Venmo is a mobile app that allows people to make electronic payments to friends, family, and smaller businesses (peer-to-peer payment platforms). It is connected electronically to your debit card or checking account and amounts will be automatically withdrawn from your account or from a separate Venmo account. The recipient also needs to have a Venmo account. Venmo is owned by Paypal and is similar to Apple Pay & Zelle.

How would you obtain a certified check?

1. How to get a certified check: 2. Verify that your bank offers certified checks 3. Visit the local branch of your bank 4. Inform the teller that you want a certified check and 5. ask for any specific instructions 6. Write the check in front of the teller 7. Show your ID to the teller 8. Wait as the teller verifies the funds and stamps or 9. marks your check as certified 10. Pay any fee that your bank charges for this service 11. Keep your receipt until the check clears your account

. Why are businesses more likely to accept a cashier's check rather than a personal check?

Both cashier's checks and certified checks are official checks that are guaranteed by a bank. Compared to personal checks, cashier's checks and certified checks are generally viewed as more secure and less susceptible to fraud.

what is the difference with a cashier's check from a money order?

However, money orders are usually for smaller, set amounts, can be obtained from places other than a bank and are less expensive to get and easier to replace if lost or stolen.

Find three different businesses that offer customers the opportunity to purchase money orders:

In addition to buying them at a bank, you can get them from the U.S. Postal Service, convenience stores, drug stores, grocery stores and check-cashing companies.

What is a certified check?

Is a personal check for which a bank has guaranteed payment.

Whats the difference with a cashiers check?

A cashier's check is a check backed by the bank. The bank takes the funds from the person requesting the cashier's check and holds it in escrow, a special account specifically used to cover the check amount. Then, the bank prints a check against the funds they are holding. Both certified checks and cashier's checks are "official" checks and considered "guaranteed" funds.

A checking account

A checking account offers easy access to your money for your daily transactional needs and helps keep your cash secure.

credit card

A credit card is essentially a loan from your bank, you are given credit "limit" with which to spend and you can use your credit card to charge for various purchases/services. However, if you do not pay back the total amount at the end of the month you will be charged interest. If you do not make at least the minimum payment you will be charged fees in addition to the interest.

debit card

A debit card is used to pay for transactions at various stores / other locations and the payment comes directly from your checking account. You can only spend as much as you have in your account.

What is a money order?

A money order is very similar to a cashier's check except that you pay for it in advance and guarantees payment.

What is Paypal and how is it different from Venmo?

Paypal is also an electronic payment system but it is mostly used for business transactions whereas Venmo is mostly used for friends and family.