Chapter 20 Vocabulary Flashcards
A check drawn by a bank on itself.
Casher’s Check
A check that is payable on demand, drawn on or payable through a financial institution, and designated as a traveler’s check.
Traveler’s Check
A check that has been accepted in writing, by the bank on which it is drawn. By accepting the check, the bank promises to pay the check at the time it is presented.
Certified Check
A check that is paid by a bank when the checking account on which the check is written contains insufficient funds to cover the check.
Overdraft
A check, other than a certified check, that is presented for payment more than six months after its date.
Stale Check
An order by a bank consumer to his or her bank not to pay or certify a certain check.
Stop-Payment Order
The first bank to receive a check for payment.
Depositary Bank
The bank on which a check is drawn (the drawee bank).
Payor Bank
Any bank handling an item for collection, except the payor bank.
Collecting Bank
Any bank to which an item is transferred in the course of collection, except the depositary or payor bank.
Intermediary Bank
A network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors, most banks in the United States have Federal Reserve accounts.
Federal Reserve System
A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.
Clearinghouse
A transfer of funds through the use of an electronic terminal, a telephone, a computer, or magnetic tape.
Electronic Fund Transfer (EFT)
A set of rules issued by the Federal Reserve System’s Board of Governors to protect users of electronic fund transfer systems.
Regulation E
Prepaid funds stored on microchips in laptops, smartphones, tablets, and other devices.
Digital Cash
