Definitions Flashcards
3rd Party Check
When someone writes a check to one person, and that person signs it over to someone else.
Account Holder
A person designated or authorized to transact on an account.
Account Number
A unique number given to each account.
Accrued Interest
Interest that has been earned but not yet paid.
ACH
Automated Clearing House; an electronic network for financial transactions within the United states.
Available Balance
The balance in an account that the owners have available for them to use at that moment.
Bait Money
Money that has had the serial number recorded and should be given to a robber during a robbery situation.
Balance
The amount of money in an account.
BSA
Bank Secrecy Act; requires banks to assist US agencies in detecting and preventing money laundering.
Beneficial Owner
A person who owns 25% or more of a business.
Beneficiary
The person(s) entitled to the funds within the account they are beneficiary on if the account holder were to pass away.
Charge Off
An account that has went negative or unpaid for a specific amount of time.
Checking Account (DDA)
A transactional account in which checks, or debit cards can be used.
Collected Funds
Cash deposits or checks that have been presented for payment and for which payment has been received.
Commercial Banking
Banking focused on products and services to provide to businesses.
Compensating Balance
A banking account balance that allows not-on-us checks to be cashed against. The not-on-us checks can be cashed as long as the customer has a compensating balance in their deposit account with Busey to cover the amount of check at the time of the transaction.
Consumer Banking
Banking focused on products and services to provide to the general public.
Control Prong
Identifies the individual with a significant responsibility to control, manage or direct the activities of the legal entity. Generally, this is an officer, partner or member of the business.
Counterfit
Fake
Credit
Money being added to an account balance.
CTR
Currency Transaction Report; a report we are required by Federal Law to complete if a customer has a transaction with greater than $10,000.00 in cash.
Debit
Money being subtracted from an account.
Deposit
Money being put into an account.
Disclosures
Information that the Federal and State laws require financial institutions to give to their customers regarding the uses of an account.
Endorsment
The signature on the back of a check, it must match the payee on the front of the check.
Escheated
The right of the government to that ownership of assets or unclaimed property.
Federal Reserve System
The central bank of the United States.
Forgery
The fraudulent signing or altercation of another’s name.
Fruad
Wrongful or criminal deception intended to result in financial gain.
Hold
When the bank delays the timing in which funds from a deposit will be available due to the deposit meeting certain criteria.
Insufficient Funds
When the customer’s account has inadequate amount to cover a payment or debit; would cause the customer’s account to go negative.
Joint Owner
An account owner by two or more people.
Kiting
A form of check fraud that involves taking advantage of the float to make use of non-existent funds in a bank account.
LEC
Legal Entity Customer; the name given to a business required to provide Beneficial Ownership information. Only certain types of businesses fall into this category.
Loan Payment
A payment made towards a loan held at our financial institution.
Regular Payment
A payment made on the regularly scheduled date and for the scheduled amount.
Principal
The purchase amount of the loan, this does not include interest.
Interest
The fee the bank is charging for you to use the money that was loaned.
Payoff
The total to pay the balance of a loan to $0.
Late Payment
When a payment is made after the regularity scheduled date.
Mailing Address
Where a customer’s mail will be sent.
MICR Line
Magnetic Ink Character Recognition Line; the line of number and characters on the bottom of the check that is printed in special ink and allows the number/characters to be read by teller scanners.
MIL
Monetary Instrument Log; used when an official check is purchased with cash between $3,000 and $10.000.
Money Laundering
The process of concealing the origin of money obtained from illegal activities, by converting it into a legitimate source.
Money Market
A type of savings account that can be attached to an existing debit card for ATM access only, and also has check writing ability.
OFAC
Office of foreign Assets Control; OFAC maintains a list of countries, businesses, and individuals which banks may not do business or must use caution.
Official Check
A check the bank is able to issue in place of a personal check with available funds from their account.
On-Us-Check
Checks written off of another Busey bank account.
Outstanding Check
A check that has been written, but is has not been cashed, deposited, or otherwise cleared the bank.
Overdraft
This occurs when a customer uses more money than what is available in their account.
Payable Upon Death
A person who is entitled to money in a specific account only after the account holder passes away.
Payee
A person to whom a check is made payable to.
Physical Address
The address at which a customer is living.
POS
Point of Sale; a type of purchase or transaction made with a debit card, typically in a card reader or requiring a PIN to be entered.
Post Dated Check
A check dated in the future.
POA
Power of Attorney; a person who can act on behalf of another person.
Pre-Authorized Transfer
This occurs when the balance in an account drops below zero and funds are transferred from a connected account to prevent an overdraft. Typically, a checking account becomes overdrawn, and the bank is authorized to transfer money from savings.
Primary Owner
The main owner of an account.
Proof Work
All the different pieces of a transaction put together.
Recourse
Having a matching balance in your account if the check comes back.
Regulation
A rule or directive made and maintained by an authority.
Regulation CC
A set of rules and procedures that enforce the expected Funds Availability Act; tells banks how long funds in a deposit may be held before the customer can access them.
Regulation D
Limits the number of withdrawals that may be made from a savings or money market account.
Regulation DD
Ensures that Busey discloses required information to customers.
Regulation E
Permission to authorize debit card transactions that will overdraw their checking account.
Opt in
Permission given to overdraw an account using a debit card.
Opt Out
Denying permission to overdraw an account using a debit card.
Remitter
The person who is sending a payment.
Routing Number
A nine digit code used by financial institutions to identify which account.
SAR
Suspicious Activity Report
Savings Account
An account used to save money, typically not to be used for daily transactions.
Signature Card
A document the financial institutions use to authenticate a customer’s signature for personal or business accounts.
Signer
Someone who has access to act on an account.
Sole Proprietorship
An unincorporated business with a single owner who pays personal income taxes on business profits.
Stale Dated Check
Any check that is more than six months old.
Statement
An official document provided by the bank to show all the transactions and balance on an account during a period, typically a month or quarter.
Stop Payment
A request to cancel a payment, such as a check that has not yet been deposited, cashed or cleared.
Structuring
The act of performing transactions under the federal reporting limit to avoid being reported.
Terms Deposit Rates
The rate at which you earn money from a bank on your deposits in an interest bearing account.
Withdrawl
Money being taken out of an account.
