Account

A relationship involving credit established under a particular name, usually by deposit or loan.

Account Balance

The amount of money in an account at a specific point in time.

Automatic Funds Transfer

The electronic transfer of funds from one account to another, set up to occur on a regular basis.

Altered Check

A check in which material change, such as the dollar amount, has been made.

Banks are expected to detect alterations and are responsible for paying checks only as originally drawn.

Available Balance

The portion of a client's account balance on which the bank has placed no restrictions, making it available for immediate withdrawal.

Business Day Cutoff

The latest time during a specific business day that a transaction can be made and posted to an account.

Balancing

The act of bringing 2 related numerical figures into agreement.

Cash Drawer

A tray built with compartment bins to divide the various denominations of currency.

Cash Drawer Limit

The minimum and maximum dollar amounts that can be kept at the teller staion.

Cash In

The act of receiving cash from a client.

Cash Out

The act of paying cash to a client.

Cash Overage

A difference after valancing that results from having more cash than the teller is supposed to have as ending cash.

Cash Shortage

A difference after balancing that results from having less cash as the teller is supposed to have. 

Cashing

Delivering money in exchange for a check drawn on a financial institution.

Charge Off

A loan, obligation or account that the bank no longer expects to collect and writes off as a bad debt.

Check

A written, dated and signed instrument that directs a bank or other financial institution to pay a specific sum of money to the bearer.

Counterfeit Checks

Checks scanned into a computer retaining the authorized signature, but may include a change to the payee's name, account, serial number, check number and/or date.

Counterfeiting

The act of creating counterfeit money (fake/bogus coins and currency) made to appear genuine. Counterfeiting is a felony, making the perpetrators subject to long prison terms and heavy fines.

Currency

Any form of money that serves as circulating medium and includes both paper and coin.

Current Balance

The amount of funds in a client's account.

This may refer to the book (ledger) balance, which simply shows the balance after debits and credits have been posted.

Debit

A charge against a client's balance or bank card account.

Debit Card

A plastic card enabling the card holder to purchase goods or services, the cost of which is debited to his or her bank account.

Deposit

Any placement of cash, checks or other drafts with a bank for credit to an account.

Deposit Slip

An itemized memorandum of the cash and other funds that a client presents to the bank for credit to his or her account.

Direct Deposit

The process by which a payer delivers funds electronically to a payee's financial institution for credit to his or her account.

Ending Cash    

Actual money on hand at the end of the day.

Endorsement

• Negotiating the instrument 
• Restricting payment of the instrument 
• Incurring endorser's liability on the instrument

Endorser

The person who signs the back of a check and receives the funds when the check is cashed.

Forgery

The act of producing or altering a document or financial instrument with the intention to defraud an individual or financial institution.

Fraud

The use of potentially illegal means to obtain money, assets, or other property owned or held by a financial institution or to obtain money from depositors by fraudulently posing as a bank or other financial institution.

Hold

A restriction on the payment of all or any part of the balance in an account.

Less Cash Deposit

A deposit from which a certain amount is given back to the client in cash.

Loan

Money advanced to a borrower usually to be repaid with interest.

Maker

The person(s) issuing a check or other negotiable item. Also known as a drawer.

Money Order

Financial instruments commonly purchased for a fee.

Night Depository

A convenience facility provided for clients who wish to deposit their funds after banking hours.

Overdrawn

The amount by which checks, drafts or other demands for payment on an account that exceeds the amount of the credit against which they are drawn.

Partial Clips

Bills of the same denomination that have been rubber-banded or paper clipped in smaller groups of 20, 25 or 50 bills each.

Payee

The person a check is made out to.

Post Date

To date a financial instrument for a time in the future.

Recourse

The ability to recover funds when a check is returned to a financial institution unpaid.

Returned Check

A check that is returned to payee marked NSF in the account to cover the amount of the check written.

Routing Number

A 9 digit number that identifies your financial institution. Larger banks have multiple routing numbers that are based on the geographic location where the account was opened.

Savings Account

An interest-bearing account used by a client to accumulate funds for short or long term goals or emergencies.

Service Charge

A fee charged by the bank to a depositors account for services rendered.

Signature

A sign or mark made by the drawer or maker of a negotiable instrument. A signature may include a thumbprint and may be typed, printed or stamped.

Signature Card

A written agreement between the financial institution and a depositor signed by the client. A signature card can be used to identify depositor by their signature.

Sole-proprietor

Individual who owns an entire business by him or herself.

Stale-Dated

Term used when a check has been held for an unreasonably long time after issue and before being presented for payment to the bank on which it is drawn (more than 6 months).

Statement

The record prepared by a bank for a client, listing all debits, credits and the closing balance in an account for a certain period of time.

Stop Payment

An order issued by a depositor instructing to their financial institution to refuse payment of the check or checks specified in the order.

Title

Evidence or proof of ownership.

Transaction

A single task for one client, such as a deposit or withdrawal.

ABA

American Banker Association (ABA) 

ACH

Automated Clearing House (ACH) - The transfer of money between accounts by consumer electronic systems (for example: Automated Teller Machines (ATM), electronic bill pay)

APR

Annual Percentage Rate (APR) - The amount of interest you gain from keeping money in an account in a year, not including compound interest.

APY

Annual Percentage Yield (APY) - The amount of interest you gain from keeping money in an account in a year, including compound interest.

ATM

Automated Teller Machine (ATM) - A machine that processes a variety of self-service banking transactions using a credit or debit card with a personal identification number (PIN).

BSA

Bank Secrecy Act

CD

Certificate of Deposit (CD) - An account in which you deposit a sum of money and agree to keep it there for a specified length of time. The account typically pays higher interest rates than standard savings and checking accounts.

CIF

Client Information File (CIF) - Name of the file that contains all of the clients and account information.

DD

Demand Deposit (DD) - A deposit of funds that can be withdrawn without any advanced notice. Checking accounts are the Most common DD account.

EFT

Electronic Funds Transfer (EFT) - The use of automated technology to move funds without paper checks. 

Examples include:

• Direct deposits
• Debit card transactions
• Account transfers

FDIC

Federal Deposit Insurance Corporation (FDIC) - A government run organization that insures client's bank deposits up to $250,000, if the bank fails. The National Credit Union Administration is the equivalent for credit unions.

NSF

Non-Sufficient Funds (NSF) - Also called Insufficient Funds, NSF is the condition that exists when the drawer's account balance does not contain sufficient funds to cover checks or electronic debits. A fee is associated with NSF items that are approved and paid on the client's behalf.

OD

Overdraft (OD) - A negative (-) balance in an account, resulting from the paying (posting) of checks or electronic debits for an amount greater than the depositor's balance.

PIN

Personal Identification Number (PIN) - A series of numbers or letters created and used by a card holder, or randomly assigned by the card issuer. A PIN provides personal security in assessing financial services terminals and helps prevent the use of a bank card by unauthorized parties.