6.

6:
BANKING
APPLICATIONS

Ms.Masarrah
 Describe the meaning of automated
1 teller machine (ATM), electronic fund
transfer (EFT), credit or debit card and
contactless payments, cheque, and
LEARNING internet banking.

OBJECTIVES
2 State the advantages and disadvantages
of every banking applications.
BANKING APPLICATIONS
Automated Teller
Machine (ATM)

Electronic
Cheques Fund
Transfer

Credit/Debit Card
Internet Banking and Contactless
Payment
 BANKING APPLICATIONS
Automated Teller Machine
(ATM)
• This is a machine that
allows you to carry out
banking services in
locations other than inside
a bank.
• Use to withdrawing cash
and depositing cash or
cheques.
• Can pay bill and make a
money transfer at an ATM.
Electronic Fund Transfer Credit/Debit Card and
(EFT) Contactless Payment
• This is the transfer of • Credit card: a card that
money electronically from allows a customer to
one account to another. borrow funds to pay for
• Need a bank code and the goods and services.
account number that the • Debit card: allowing the
fund should be sent to and holder to transfer money
the name of the account electronically from their
holder. bank account when making
• Also used in supermarkets. a purchase.
• Both need to be valid to be
used.
• Each card has expired date
and CVV (security code).
 BANKING APPLICATIONS
Internet Banking Cheques

• A method of banking in which • A written document that orders a bank

transactions are conducted to pay aa specific amount of money
electronically via the internet. from a person’s account to he person
• Also, knowns as e-banking or online in whose name the cheque has been
banking. issued.
• Almost every banking services have
online access of this service.
• Using web browser or an app on a
smartphone.
• For online transaction, must have
reliable password and security
features (username).
 ADVANTAGES AND DISADVANTAGES OF ATM

ADVANTAGES DISADVANTAGES
1. Open all day, every day therefore more convenient 1. Customers could be charged fees for using them.
for customers.
2. Customers do not have to go to a specific bank or 2. There is a limit on how much cash can be
building. withdrawn each day.
3. Accounts can be accessed by customers from 3. Possibility of fraud. Hidden camera can be used to
anywhere in the world. capture card details.

4. There is less human involvement and is cheaper

for the banks.
 ADVANTAGES AND DISADVANTAGES OF EFT
ADVANTAGES
1. Faster payment than using cash or cheque.
2. Payment is immediate.
3. Can be used for payments 24/7.
4. More secure than cash.
5. Payments can be made anywhere in the world.
DISADVANTAGES
1. As it immediate, customers must have the funds
available.
2. If send the money to the wrong person or account,
you cannot recover it.
3. Open to abuse by hackers who may set up fake
accounts in the name of firms and people you are
sending the money to.
ADVANTAGES AND DISADVANTAGES OF DEBIT CARD

ADVANTAGES DISADVANTAGES
1. Easy to obtain from the bank. 1. No time period to cancel a payments.

2. Convenience – purchases can be made with the 2. May be hard to keep track of your payment.
swipe of a card.

3. Security - do not have to carry large amounts of 3. Fraud - criminal could steal your personal details
cash. and set up a card in your name.

Accepted in most shops for payment.

 ADVANTAGES AND DISADVANTAGES OF CREDIT
CARD
ADVANTAGES DISADVANTAGES
1. Can be used to withdraw cash at an ATM but will 1. People may be tempted to spend too much
have to pay a charge. money.

2. Convenience – purchases can be made with the 2. When a person’s borrowing is up to their credit
swipe of a card. limit, they will not be able to use it.

3. Easier to cancel a payment than when using a 3. There may be fees and charges.
debit card
 ADVANTAGES AND DISADVANTAGES OF INTERNET
BANKING
ADVANTAGES DISADVANTAGES
1. Customers can view the details of their accounts 1. Security - hackers may find login and password
24/7. details for their account.

2. They can make EFTs using smartphone. 2. As it is very easy to transfer money, it is also easy
to make mistakes and send it to the wrong person
or account.
3. Easy to see the balance.
 ADVANTAGES AND DISADVANTAGES OF CHEQUES

ADVANTAGES DISADVANTAGES
1. People do not have to carry cash. 1. The receiver do not know if the person paying it
has that amount of money in their account.

2. They can be stopped from being paid by phoning 2. Not suitable for small amounts.
the bank.

3. Can be traced if lost and paid in by wrong person.

 OPEN

CLASSWORK 6.6