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The person to whom the check is written.

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Payee

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party that writes the check to the payee

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Payor

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a booklet that is used to keep a record of all your checking related transactions including checks written and deposits

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Check Register

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a strip on the side of some checks that is torn off. Used to keep a record of the amount of the check

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Check Stub

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when the payee signs their name on the back of the check to cash or deposit the check. Sign your name in ink and write it the way it is spelled on the check.

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Check Endorsement

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when a check is payable to you and someone else, then both of you must sign the back of the check

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Two-Party Check

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the amount of money currently in your checking account

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Balance

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when you write a check for more money than you have in your account

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Non-Sufficient Funds

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the minimum amount of money required in your account, having an amount less than the minimum balance may result in service charges

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Minimum Balance

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an amount the bank charges you for the use of the checking account

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Service Charge

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an itemized record of all the transactions occurring in a depositors account over a given period, usually a month. A report on the status of the bank account.

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Bank Statement

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checks that are paid by the bank, deducted by the depositors account, and returned with the bank statement (a copy)

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Cancelled Check

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written order from a depositor telling the bank to pay cash to a person or business

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Check

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a bank account that allows a bank customer to deposit cash and to write checks against the account balance

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Checking Account

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person or business that has cash on deposit in a bank

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Depositor

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a bank form on which currency and checks to be deposited are listed

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Deposit Slip

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the bank or other financial institution that pays the check.

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Drawee

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the owner of the account and the person who signs a check

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Drawer

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simply signing your name on the back of a check

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Blank Endorsement

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signing the back of the check and also writing to whom the check is transferred

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Full or Special Endorsement

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signing the back of the check and writing a limitation on it

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Restricted Endorsement

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checks that have been written but not yet presented to the bank for payment

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Outstanding Checks

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the process of determining any differences between the balance on the bank statement and the checkbook balance

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Reconciling the Bank Statement

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card containing the signatures of the persons authorized to write checks on the bank account

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Signature Card

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a demand by the depositor that the bank not honor a certain check

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Stop Payment Order

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writing the word across the front of the check indicating the check is no good

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Void

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A type of financial institution

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Bank

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A type of financial institution at which customers deposit money in order to withdraw it later.

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Depository institution

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type of financial institution that provides services for customers, such as deposit accounts, mortgages, auto and personal loans, and credit cards.

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Retail bank

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A financial institution with no physical location or building that customers access from anywhere with an Internet connection; also known as an online bank.

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Internet Bank

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A financial institution owned by investors that focuses on business customers, providing bank accounts along with specialized services such as foreign exchange, investment services, and capital loans; some also provide limited customer-oriented services, such as personal checking and savings accounts. The most common way for a bank to be organized. Also called full-service banks.

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Commercial bank

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A financial institution that provides services for businesses, such as raising capital through the stock market.

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Investment bank

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A financial institution that oversees a nation's monetary system by regulating banks, lending money when commercial banks are not able to, and controlling the money supply.

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Central bank

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A bank with one location, usually in a small town or rural area, that serves local customers, tends to invest locally, and knows the challenges of the local community.

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Unit bank

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A type of financial institution that usually specializes in retail banking and does not operate internationally; also known as an interstate bank.

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Regional bank

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A financial institution with offices all over the country.

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National bank

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A computerized machine that provides a means of self-service banking; allows a customer to perform basic banking activities, such as withdrawing cash, viewing account balances, initiating cash advances, and making deposits.

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Automated teller machine (ATM)

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Allows customers to conduct financial transactions on a secure website operated by their bank; also known as home banking.

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Online Banking

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Allows for an immediate money transfer from one person to another.

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Peer-to-Peer Payment (P2P)

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Computer software program loaded onto a smart phone, tablet, or other mobile device that allows the user to perform specific tasks

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App

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A card that enables customers to electronically access the funds in their accounts at an ATM or to pay for goods and services in stores or online.

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Debit card

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A type of insurance that covers a bank from losses due to robbery or theft

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Banker's blanket bond

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An independent federal agency established in 1933 that provides deposit insurance up to $250,000 for depositors in insured banks and thrifts in the case of bank failure. (FDIC)

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Federal Deposit Insurance Corporation

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Any exchange of money from one account to another through computer based system that is started by electronic means. (EFT)

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Electronic Funds Transfer

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Electronic network for financial transactions that processes credit and debit transactions, processes checks, and transfers funds between banks. (ACH)

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Automated Clearing House

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A system set up by the federal government to supervise and regulate member banks and to help banks serve the public efficiently. All national banks are required to join the Federal Reserve System, and state banks may join.

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Federal Reserve System

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A container for storage of valuables offered by banks.

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safe-deposit boxes

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Funds are deposited electronically into your account and are available automatically for your use.

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Direct Deposit

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