MYCA – Glossary of Terms

ACH

The system that connects banks and credit unions to one another and enables electronic transactions, such as automatic payroll deposits, debit card purchases, and online bill payments to be handled and processed across financial institutions.

ACH Auto-Debit

Any transaction that you authorize to be paid automatically using your checking account number and your bank’s or credit union’s routing number, such as a utility or car insurance bill.

Available Balance

The maximum amount of money you can withdraw or spend from your account today. This balance may or may not include any pending transactions you have made. If your bank or credit union does not include pending transactions when calculating your available balance, be sure you have made those calculations yourself when you consider making withdrawals or purchases.

ATM Fee

A fee charged by a bank or credit union for using their ATM to check your balance, withdraw cash or use other services. Most banks and credit unions will charge you a fee if you are not their customer or member. Some banks and credit unions will charge you a fee for using another bank’s or credit union’s ATM.

Bounced/Returned Check

A check that has been returned to the person or business you wrote it to because there is not enough money in your account to cover the amount of the check. This also applies to payments made through online bill pay.

Check Hold

A delay in crediting the money from a check you deposit to your account. This allows the financial institution to make sure the check properly clears the account of the person or company who wrote the check. Examples include checks for large amounts or from out-of-state banks or credit unions. There may also be check holds on your account when your account is new.

Credit

Any transaction that increases your balance, such as a deposit, direct deposit, refunds, transfers from other accounts, etc.

Current (or Ledger) Balance

The balance which reflects all transactions that have cleared (or posted to) your checking account, but does not include any pending transactions that will affect your balance soon.

Debit

Any transaction that decreases your account balance, such as an ATM withdrawal, debit card transaction, check, transfer to another account, or service fee.

Debit Card

A card, typically carrying a brand or logo such as Visa or MasterCard on the front, that is issued to you by your bank or credit union. Your debit card can be used to make purchases at merchants and also to withdraw cash, check your balance, and make transfers at ATMs. The amount of a debit card transaction is deducted directly from your checking account (not to be confused with a credit card).

Deposit

Money you or someone else (like your employer) puts in your account.

Debit Card Transaction

Any transaction that you authorize using your debit card number. Examples include:

Recurring: a regularly scheduled payment (such as a utility bill).

Everyday: a one-time debit transaction (such as using your card at a grocery store or restaurant).

Direct Deposit

Having money, such as paychecks and Social Security checks, automatically and electronically put into your account. With direct deposit, you don’t physically deposit a check into your account, which saves time and ensures the deposit is made on time.

Online Bill Pay

A method of conveniently paying your bills using your bank’s or credit union’s website and digital banking service.

Overdraft or Insufficient/ Non-Sufficient Funds (NSF)

When there is not enough money in your account to cover your purchases, withdrawals, debit card use, checks, or other debits.

Overdraft Fee

A fee that your bank or credit union can charge to your account any time you do not have sufficient funds available in your account to cover the amount of the transaction when it posts.

Overdraft Transfer Fee

When you have another account linked to your checking account, this is the fee you may pay to have money transferred automatically to keep from overdrawing your account.

Pending (or Pre-Authorized) Transaction

A transaction that hasn’t been posted to your account yet. Pending transactions may give the appearance that an account has more or less money in it than it actually does.

Point of Sale (POS)

Any transaction made at a merchant with your debit card. There are two types of POS transactions:

A Debit Transaction is a PIN-based transaction, which means you enter your PIN number on a keypad at the time of purchase. When you choose debit, the money you spend comes out of your account faster.

A Credit Transaction is a signature-based transaction, which means you sign your name at the time of purchase. When you choose credit, the money you spend may take a little longer to come out of your account. Although it’s labeled a credit transaction, using your debit card in this way is not the same as using a credit card.

Posting

The process of clearing transactions on your account.

Posting Cut-off Times T

The time when the financial institution’s processing day ends. Transactions made after the posting cut-off time will be processed with the next day’s transactions.

Pre-Authorization Hold

A specific dollar amount that some merchants (usually hotels, rental car agencies, gas stations and restaurants) charge to your debit card to verify that you have enough money to cover the transaction. This hold amount may be higher or lower than the actual purchase amount and will clear when the actual transaction posts.

Transfer

Moving money from one account to another account. Many transfers can be automatic between accounts at your financial institution.

MYCA – Glossary of Terms

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MYCA – Glossary of Terms

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