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
