12)

Debit cards draw money directly from your checking account when you make the purchase. They do this
by placing a hold on the amount of the purchase. Then the merchant sends in the transaction to their
bank and it is transferred to the merchant's account. It can take a few days for this to happen, and the
hold may drop off before the transaction goes through. You will have a PIN to use with your debit card at
stores or ATMs. However, you can also use your debit card without a PIN at most merchants. You will just
sign the receipt like you would with a credit card. Below are some other facts regarding debit cards.

 A debit card is tied directly to your checking account.

 It can be used where a credit card can be used.
 Generally, you will use your PIN to complete the transactions.

A credit card is a card that allows you to borrow money against a line of credit, otherwise known as the
card’s credit limit. You use the card to make basic transactions, which are then reflected on your bill.
Worth noting: you are charged interest on your purchases, though there is no interest charged if you do
not carry your balance over from month to month. Credit cards have high interest rates, and your credit
card balance and payment history can affect your credit score. Below are other facts about credit cards:

 A credit card is a line of credit you can access with your card.
 Generally, you must sign on these purchases (exceptions may be at the gas pump or for small
amounts at a drive-through window).
 You will pay interest on the purchases made if not paid off in 30 days.

A smart card is any pocket-sized card that has embedded integrated circuits. Smart card- enabled
applications are becoming more prevalent in various sectors. The banking and financial sector requires a
highly secure authentication and verification technology that is least affected by security threats and bank
forgery, as it deals with critical data and information.

eCash is an internet-based system that facilitates the transfer of funds anonymously. Similar to credit
cards, eCash historically has been free to users, while sellers have paid a fee. eCash uses blind signatures
(a type of digital signature, in which the message's content is invisible prior to signing); no user is then
able to create a link between withdrawal and spend transactions.

Internet banking, is an electronic payment system that enables customers of a bank or other financial
institution to conduct a range of financial transactions through the financial institution's website. The
online banking system will typically connect to or be part of the core banking system operated by a bank
and is in contrast to branch banking which was the traditional way customers accessed banking services.
Some banks operate as a "direct bank" (or “virtual bank”), where they rely completely on internet banking.
Internet banking software provides personal and corporate banking services offering features such as
viewing account balances, obtaining statements, checking recent transaction and making payments.
Access is usually through a secure web site using a username and password, but security is a key
consideration in internet banking and many banks also offer two factor authentication using a (security
token).

An automated teller machine (ATM) is an electronic banking outlet that allows customers to complete
basic transactions without the aid of a branch representative or teller. Anyone with a credit card or debit
card can access most ATMs. ATMs are convenient, allowing consumers to perform quick, self-serve
transactions from everyday banking like deposits and withdrawals to more complex transactions like bill
payments and transfers. Although the design of each ATM may be different, they all contain the same
basic parts:

 Card reader: This part reads the chip on the front or the magnetic stripe on the back of the card.
 Keypad: The keypad allows the consumer to input information like the PIN, the type of transaction
he or she intends to do, and the amount of the transaction.
 Cash dispenser: Bills are dispensed through a slot in the machine, which is connected to a safe at
the bottom of the machine.
 Printer: If required, consumers can request receipts which are printed here. The receipt records
the type of transaction, the amount, and the account balance.
 Screen: The ATM issues prompts that guide the consumer through the process of executing the
transaction. Information is also transmitted on the screen such as account information and
balances.

Any Branch banking is engaging in banking activities such as accepting deposits or making loans at
facilities away from a bank's home office. Branch banking allows a financial institution to expand services
to an area outside of the home location, functioning as an extension of the home location. This can be a
more cost-effective approach because not all locations are required to offer the same levels of services as
the home location, allowing smaller offices to provide key services while larger locations provide
additional services.