Cardless ATMs

Bank customers may now access ATMs without a debit card. Using a smartphone app, both a cash code (an 8-digit number) and the PIN (4 digits) will be required for cash.   App customers may authorize another person from phone contacts to obtain money. The recipient will be sent a cash code to allow withdrawal of an approved amount.

Banks also offer a credit card “lock and limit” app to control security and spending.  This feature is used to block overseas transactions where the card isn’t present.  In addition, a small business app that can accept on-the-spot payments, create estimates and invoices immediately and help to manage cash flow.

For additional information on cardless ATMs go to:

http://www.theaustralian.com.au/technology/commbank-launches-cardless-atms/story-e6frgakx-1226900643013?nk=bef92ef2e3c07bd1787f1279b087e2b6

Teaching Suggestions

  • Have students research various mobile banking technology that might be used in the future.
  • Ask students to describe their experiences with various mobile banking apps.

 Discussion Questions 

  1. What are benefits of cardless ATMs for consumers and business?
  2. Describe potential problems with cardless ATMs.
  3. What other types of mobile banking apps might be developed in the future?

Six Bank Fees to Avoid

Each year, it seems that banks are reporting ever higher profits.  How do they make so much money?  By charging customers service fees!

Here is a list of six fees that you should avoid:

  1. ATM Fees-It’s important to know where ATM’s are located that are in your network. This will help you avoid a charge to use another bank’s ATM.
  2. Account Fees-Check the fine print. Is there a fee if your balance falls below a certain limit? The limit fees are monthly and can really add up.
  3. Overdraft Fees-Know how much money that you have to spend. Budget wisely and make sure that you have a cushion in your checking account, in case of unexpected expenses.
  4. Fancy Checks-How cute! How much do those Frozen Personalized checks cost? The reality is that the checks and the shipping costs can be very expensive. There are numerous options to acquire cheaper checks (Sam’s club, BJ’s, Costco, Walmart).  One more thing to consider:  checks are used much less frequently today, so, that box of Frozen checks might last a really long time, make sure you like the design.
  5. Credit Reports-You can get a copy of your credit report for free from AnnualCreditReport.com, so, don’t pay for one.
  6. Loan Interest– As an incentive, banks offer a discount by utilizing more than one of their services. You might get a lower rate, if you agree to direct deposit, in exchange for a reduced interest rate on your loan.

Bottom Line: Do your homework when it comes to bank fees.  There are many ways to avoid spending money on unnecessary fees.

For more information:  http://www.wisebread.com/are-you-paying-these-6-unfair-banking-fees

Teaching points:

  • Discuss these six fees with your students. Survey how many have paid at least one of these fees.
  • Have students research at least two local banks and report back on the account fees that each bank charges.

Discussion items:

  1. Do you believe that any one demographic pays more fees than another? Why?
  2. What are some other ways that people can avoid these fees?