Kinns Chapter 17 Banking Services and Procedures
Why is it important to make bank deposits of cash and checks daily?
1. Checks may have a restricted time payment or may be lost, misplaced, or stolen over time. 2. A stop-payment may be placed, or it may be returned for insufficient funds. 3. Prompt processing is a courtesy to the payer.
Describe five precautions for accepting checks in the healthcare facility.
1. Inspect the check carefully for the correct date, amount and signature 2. Do not accept checks with corrections on it 3. Ask for an ID for comparison with the signature 4. Do not accept out-of-town checks 5. Do not accept third party checks
List four requirements for a check to be negotiable.
1. It must be written and signed by the drawer 2. contain a promise or an order to pay the sum of the money 3. payable on demand or at a fixed figure date 4. be payable to order to the drawer
Describe four precautions to take if a patient is paying with cash.
1. Make sure cash is not counterfeit 2. establish a checks and balances system in which the employee accepting the cash can document on register. 3. inform patients that you can not make change for large bills 4. document cash payments in the patients account to establish an audit trail
Name five documents that can be used to withdraw money from one bank account and deposit it into another.
1. Personal check 2. cashier's check 3. money order 4. business check 5. voucher check
Describe three ways to do a mobile deposit
1. Use mobile banking app 2. snap a picture of the front and back of the endorsed check. 3. Choose the account and the amount you want deposited into the account.
Name six activities that can be done with basic online banking services.
1. check account balances 2. transfer funds between bank accounts in the same bank 3. pay bill electronically and create checks 4. determine whether a check has cleared 5. download bank information 6. view images of transactions
List three reasons why stop-payment would be used.
1. loss of check 2. disagreement about a purchase 3. disagreement about a payment
Checking Account
A bank account against which checks can be written and funds can be transferred to the payable party.
Check
A bank draft or an order to pay a certain sum of money on demand to a specified person or entity.
Principal
A capital sum of money due as a debt or used as a fund for which interest is either charged or paid.
Non-sufficient Funds Check
A check that is not honored by the bank issuing the check because there were not sufficient funds in the entity's bank account or the account has been closed.
Negotiable Instruments
A document used to to withdraw money from one bank account and deposit it into another.
What is a fidelity bond?
A form of insurance protection that covers policy holders for losses that they incur as a result of fraudulent acts by specific individuals.
Interest
A payment the bank makes in exchange for using money.
Define a direct deposit
A plan in which payments are transferred by a paying agency directly into the account of the recipients account.
In the ambulatory care setting, what is the checking account used for?
Deposits, cash, checks, debit and/ or credit
Nonsufficient Funds Fee
Fee charged when a check is written against an account with not enough funds and the check is returned unpaid.
Transaction fee
Fee charged when to many transactions are made on a bank account.
Overdraft fee
Fee for the bank paying a check or debit when the balance is not in the account.
Account Maintenance fee
Fee for using the bank account.
EMV Chip Technology
Global technology that includes embedded microchips that store and protect cardholder data.
You are a medical assistant in a small practice and been told that you now have the responsibility for paying the bills by writing out and signing checks. What is the first action you need to take before writing out the first check?
Keep in mind that the vendors give you 30 days to pay and do not pay before the due date.
Discretionary Income
Money in the bank account that is not assigned to pay for any office expenses.
Blank endorsement
Payee signs his/her name
Special endorsement
Specifies the person whom the endorser makes the check payable to.
Describe the adjustments that are made to the patient's account when an NSF check is received by the healthcare facility.
The MA must add the amount of the check plus the NSF fee back in the patients account balance.
Preparing a bank deposit
The MA must prepare a bank deposit that accompanies the funds being deposited
Endorsing checks
The MA needs to endorse the check in the box indicated
Bank Statement Reconciliation
The MA should keep accurate records of deposits and bill payment activities make the bank reconciliation smoother
Making bank deposits
The MA should make daily deposits to minimize the risk of keeping large amounts of money on hand , checks may have a restricted time payment.
Writing checks
The MA should never endorse a check to avoid embezzlement. The MA either fills out the check or the physician.
Drawee
The bank on which the check is drawn or written.
Embezzlement
The misuse of a healthcare facility's funds for personal gain.
Holder
The person presenting the check for payment.
Endorser
The person who signs his or her name on the back of the check for the purpose of transferring all rights in the check to another party.
In the ambulatory care setting, what is savings account used for?
To pay their operational expenses by check or credit.
With regard to check, define stop-payment.
When a depositor check writer who wants to resend the check has the right to request that the bank stop payment on it.
If a mistake is made when preparing a check what should be done?
Write void in ink on the check and should be filed with bank statements for record keeping.
Describe precautions to take when a patient pays with a debit or credit card.
You must make sure the patient using the card is the one presented on the card, and always ask for a state issued ID card.
Restricted endorsement
specifies purpose of endorsment