A merchant account is a type of bank account that allows businesses to accept and process electronic payments, such as credit and debit card payments. Merchant accounts are usually set up through a bank or payment processor and are separate from a business’s regular checking account. There are a few different types of merchant accounts, … Read more
The Federal Deposit Insurance Corporation (FDIC) is a U.S. government corporation providing deposit insurance to depositors in U.S. banks. The FDIC was created by the Banking Act of 1933 in response to the bank failures of the Great Depression. Its primary function is to protect the deposits of banks in the event of a bank … Read more
Definition, How to Dispute, and Example. What is a chargeback? A chargeback is a refund requested by a credit card holder from their credit card issuer. This usually happens when the cardholder is not happy with a purchase, or when there are unauthorized charges on the card. How to dispute a chargeback If you receive … Read more
A financial cooperative is a type of banking institution that is owned and controlled by its members. Financial cooperatives offer a wide range of banking services, including savings and loans. They are typically found in rural areas and serve a specific community or region. What are the five types of cooperation? There are five main … Read more
A core deposit is a deposit held at a financial institution that is not subject to withdrawal without penalty. Core deposits are a key component of a bank’s funding mix and typically make up the lion’s share of its deposits. The term “core deposit” is typically used in reference to deposits held by banks, but … Read more
Interest-sensitive assets are those assets on a bank’s balance sheet that are sensitive to changes in interest rates. The most common interest-sensitive assets are loans and investments. Loans are typically interest-sensitive because they have a fixed interest rate that does not change with fluctuations in the market. Investments, on the other hand, are typically variable-rate … Read more
A Letter of Credit: Its Uses, Examples, and How It Works. What is the role of the paying bank under a letter of credit? The paying bank under a letter of credit is responsible for ensuring that the funds are available to pay the beneficiary when the letter of credit is presented. The paying bank … Read more
What to Store in Your Safe Deposit Box What Not to Store in Your Safe Deposit Box Which documents should be stored in a safe deposit box wise test? A safe deposit box (or “safety deposit box”, as they are sometimes called) is a secure place to store valuables, important documents, and other items that … Read more
What is a bank statement? A bank statement is a document that shows all the activity in your bank account over a period of time. It can show deposits, withdrawals, and other types of transactions. Benefits of having a bank statement include being able to track your spending, seeing if there are any fraudulent charges, … Read more
A bank endorsement is when a bank signs over a check or other financial document to another party. This is often done so that the other party can then deposit the funds into their own account. In some cases, a bank endorsement may also be used to guarantee payment on a loan or other debt. … Read more
