Common payment services

What are the common payment services provided by financial institutions?

Common payment services

Opening a checking accountSigning a signature card is the first stepThis must be completed when the

account is opened to verify name, signature, and personal information of account holder.

Use your full name, or names, if a joint account.

The signature on checks and debit card purchases must match the signature card

Endorsing a check for deposit An endorsement allows the payee, the

person receiving the check, to cash the check, deposit the check or transfer payment of the check to someone else.

The signature on endorsement must match the signature on the signature card of the account holder.

Common payment services

Common Payment Services

Different types of endorsements: Blank

Sign the back of the check with the name that matches the front of the check and the signature card.

Full This endorsement changes ownership of the

check from the original payee to a new payee, The person cashing the check.

Restrictive This endorsement limits what can be done with

the check; usually “For Deposit Only”.

Blank Endorsement

Consists of endorser’s name only

Anyone who has a check with a blank endorsement may cash it.

Full Endorsement

Transfers payment of a check to someone else.

Can be used to make payment on a debt

Juan Delgado is the payee on this check.

Restrictive Endorsement

Limits use of the check so it can be deposited only to endorser’s account.

Safest type of endorsement, as it cannot be cashed by a thief or someone who finds the check.

Safest endorsement to use when mailing a check for deposit or when using the ATM for deposit.

Making a Deposit in Checking or Savings Accounting Information

Depositors name Account number Date

List & Total Amount of Money Deposited Currency Coin

Making a Deposit in Checking or Savings Checks

List separately Identify by check number Total the amount of checks to be deposited

Totals Total the amount of cash & checks If you want cash back it must be deducted

from the total Signature is required if receiving cash back.

Check Writing Procedures

1. Ensure all information is written in the check register first, and ensure checks are written in numerical order.

2. Write the date the check is written.

3. Write the payee’s name.

Check Writing Procedures continued1. Write in the numerical amount of the check.

2. Write in the amount of the check in words.

3. Write in the purpose of the check.

4. Sign the check.

Complete the check register http://www.moneyinstructor.com/

Complete the check http://www.moneyinstructor.com/

Withdrawals

• From a Savings Account– Complete a withdrawal slip– Record withdrawals in savings account

register– Withdrawals may be made using a bank

card through electronic fund transfer (EFT) if the account has one.

Check Register

• Should be completed as checks are written

• Check number or transaction code must be recorded

• Date must be recorded• Payee’s name and purpose of the check• Amount of payment or withdrawal (ATM),

or amount of deposit should be entered • Calculate new balance

– Subtract fees, checks, & withdrawals– Add deposits

Bank Reconciliation

What is a bank reconciliation?A bank reconciliation is the document created

to show how the two balances (your own record of your checking account and the bank’s record of your account) were brought into agreement.

What is an outstanding check?Outstanding checks are checks that have not

been deducted from the bank statement balance.

Steps in a Bank Reconciliation1. Obtain the monthly bank statement.2. Determine checks paid.3. Find differences between the monthly

bank statement and monthly check register.

4. Calculate the adjusted balance.5. If the balances do not agree, check

the steps again and recalculate.