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19 Cards in this Set
- Front
- Back
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check
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a draft drawn by a drawer ordering the drawee bank or financial institution to pay a fixed amount of money to the holder on demand
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cashier's check
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a check drawn by a bank on itself
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traveler's check
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a check that is payable on demand, drawn on or payable through a financial institution(bank), and designated as a traveler's check
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certified check
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a check that has been accepted in writing by the bank on which it is drawn. Essentially, the bank, by certifying (accepting) the check, promises to pay the check at the time the check is presented
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overdraft
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a check that is paid by the bank when the checking account on which the check is written contains insufficient funds to cover the check
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stale check
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a check, other than a certified check, that is presented for payment more than six months after its date
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stop-payment order
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an order by a bank customer to his or her bank not to pay or certify a certain check
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depositary bank
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the first bank to receive a check for payment
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payor bank
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the bank on which a check is drawn (the drawee's bank)
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collecting bank
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any bank handling an item for collection, except the payor bank
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intermediary bank
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any bank which an item is transferred in the course of collection, except the depositary or payor bank
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federal reserve system
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a network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors. Most banks in the US have Federal Reserve Accounts
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clearinghouse
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a system or place where banks exchange checks and drafts drawn on each other and settle daily balances
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electronic fund transfer (EFT)
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a transfer of funds through the use of an electronic terminal, a telephone, a computer, or magnetic tape
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regulation E
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a set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems
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digital cash
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funds contained on computer software, in the form of secure programs stored on microchips and other computer devices
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e-money
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prepaid funds recorded on a computer or a card (such as a smart card or a stored-value card).
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stored-value card
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a card bearing magnetic strips that hold magnetically encoded data, providing access to stored funds
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smart card
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a card containing a microprocessor that permits storage of fund via security programming, can communicate with other computers, and does not require online authorization for fund transfers
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