Glossary

Automated teller machine (ATM): Computer-controlled terminals located on the premises of financial institutions or elsewhere, through which consumers may make deposits, withdrawals, or other transactions as they would through a teller. Also known as a money machine or cash machine.

Bad check: A check that is written when there is not enough money in the account. Also known as a bounced check.

Balance: The amount of money in an account.

Cash: Money in the form of bills or coins.

Check: A document used for payment.

Check register: A form to keep track of checking account transactions.

Checking account: An account in which checks may be written against amounts on deposit.

Cleared check: A check that has gone through a financial institution’s processing center and is listed on a monthly statement.

Credit unions: Financial cooperative organizations of individuals with a common affiliation (such as employment, labor union membership, or place of residence). Credit unions accept deposits of members, pay interest (dividends) on them out of earnings, and provide consumer installment credit to members.

Debit card: A card used to make an electronic withdrawal from funds on deposit in a financial institution, as in purchasing goods or obtaining cash.

Deposit: The money that is put into an account.

Deposit ticket: The form used to put money into an account.

Endorse: To sign a name on the back of a check in order to cash it or deposit it.

Financial institution: A business that deals with money. For example, a bank or credit union.

Insufficient funds: See Bad Check.

Insufficient funds fee: The fee that is charged by a financial institution or business when a check does not clear.

Less cash received: The amount of cash an account holder gets back when a deposit is made.

Memo: The area on a check that notes what the check was written to pay for.

NSF: Not sufficient funds – when there is not enough money in an account to cover a check.

Outstanding check: A check that is still going through financial institution processing.

Overdraft: When an account goes below zero – there is not enough money to cover the withdrawal.

Reconcile: The process of determining that a checkbook balance matches the financial institution’s balance for an account.

Reconciliation: When an account holder has verified that a checkbook balance is the same as the financial institution’s balance for the account.

Reconciliation form: A form that helps an account holder reconcile an account. See Reconcile.

Recording a transaction: The act of writing down a transaction in a check register. See Transaction.

Statement: The papers that are sent every month from a financial institution listing all of the activities in an account for the month.

Transaction: When money goes into, or out of, an account. Can include deposits, withdrawals, payments, fees, ATM transactions or transfers.

Void: Rendering a check unusable; an indication that the check is unusable

Withdrawal: The removal of money from an account. This can be by check, ATM, automatic payment or other methods.