electronicmoney fed chicago

8/11/2019 Electronicmoney FED Chicago

1/19

What is EFT and what are its advantages?

How can consumers use electronic money?

Why is electronic banking growing?

Is electronic banking safe?


2/19

Electronic Money is one of a series

of essays adapted from articles in

On Reserve , a newsletter for economic

educators published by the Federal

Reserve Bank of Chicago. The originalarticle was written by Keith Feiler.

The revision was prepared by

Tim Schilling.

For additional copies of this essay or

for information about other Federal

Reserve publications on money and

banking, the financial system, the

economy, consumer credit, and other

related topics, contact:

Public Information Center

Federal Reserve Bank of Chicago

P.O. Box 834

Chicago, IL 60690-0834

(312) 322-5111

www.frbchi.org


3/19

3

hirty years ago, some pre-dicted we were on the verge of acashless society. Paper currencyand checks would join the Edseland the black-and-white televi-sion as antiquated symbols of thepast. Consumers would embracea new alternative for making pay-ments: electronic money. As itturned out, consumers were re-luctant to give up on currencyand checks.

In recent years, however, con-sumers seem to be changing theirminds. Cash and checks are stillwidely used. Currency is used for87 percent of payments, mainly

for nickel and dime purchases.And checks are the paymentchoice for about ten percent of transactions each year. But the

percentage of transactions doneelectronically is growing dramati-cally. The important role of elec-

tronic payments can be seen bylooking at the value of paymenttransactions. Electronic paymentsaccount for nearly 90 percent of the dollar value of transactions.

This growth is made possible by electronic funds transfer (EFT)systems, which move funds in andout of accounts using electronicimpulses. EFT systems rangefrom the now-familiar automatedteller machines (ATM) to virtual banking on the Internet. This booklet discusses the differenttypes of EFT systems and looksat the future of electronic money.

T

21

63

550

3%Electronic Transactions

10%Check Transactions

87%Cash Transactions

89%

11%

3%

$595

$74

$2.2

Value of Transactions

(in Trillions)

Volume of Transactions

(in Billions)

U.S. PAYMENTS

Source: National Automated Clearing House Association


4/19

4

1 24 57 80*

Make Guessing Your Pin LikeFinding a Needle in a Haystack

Some basic rules for effectively using your four-digitPersonal Identification Number (PIN):

1. The PIN should be kept secret to prevent fraud. It shouldbe known only to the owner (or joint owners) of the card.

Never tell your PIN to anyone else.2. The PIN should be easy to remember but avoid numbers

such as birth dates, Social Security numbers, addresses,or phone numbers. Those numbers are easily guessedor gathered from other sources of information such ascheckbooks, drivers licenses, or social security cards.

3. The PIN should be memorized and never written on theATM card or anything kept with or near the card.

4. The PIN should never be given over the phone. Likewise,dont include it in mail orders.

ATM and POSSystemsThe most common form of EFTtechnology is the ATM, which en-ables us to make deposits, obtaincash, and transfer funds betweenaccounts. Many ATMs also can be used to pay bills and loansand complete other transactions.ATMs are activated by insertinga special access card into a ma-chine. A consumer must enter

a personal identification number(PIN) before any account or trans-action information appears onthe screen. When the transactionis completed, the consumerreceives a receipt showing thedate, the dollar amount and thetype of transaction.

A variation of this systemis point-of-sale (POS). With POS,consumers use an access card(sometimes an ATM card) or debitcard to transfer funds immediatelyfrom their account to a merchantsaccount. For this reason, a POS

transaction is different from acredit card transaction in whichpayment is postponed.

To use POS online, a con-sumer simply passes a debit cardthrough the terminal to transferthe funds. It is usually also neces-sary to punch in the proper PIN.The consumer receives a printed

receipt after the transaction iscompleted.Some POS transactions are

offline. With an offline trans-action, the consumer does notusually have to enter a PIN number, and the sales charge is sub-mitted by the retailer along withcharge slips. The amount of thetransaction is deducted by theconsumers bank when the salesslip is received and appears onthe consumers bank statementrather than as a charge on a creditcard statement. Offline POStransactions may also require thecustomers signature on a slipthat resembles a charge slip.


5/19

5

During the 1990s, the numberof POS outlets has increased dra-matically to include such retail

outlets as grocery stores, conve-nience stores, and even movietheaters. In fact, most places thattake a major credit card will takea POS access card that carries theproper logo.

POS is a useful payment alter-native because it allows an imme-diate transfer of funds betweenthe buyer and seller. The sellerdoes not have to worry about a bounced check. For the buyer,POS can be more convenient thanwriting a check, and is safer thancarrying cash.

The federal government isplanning to take increased advan-tage of ATM and POS technologythrough electronic benefits trans-fer (EBT) programs. These pro-grams allow state and federalagencies to disburse benefits pay-ments through an ATM, POS, orsimilar system. Among the mostcommon EBT programs are foodstamp programs. However, otherpayments in the near future alsomay be distributed through varia-tions of ATM or POS technology.

The level of electronic payments and electronic banking has grown considerablyduring the 1990s. One area of significant growth is POS, which increased dramat- ically in the mid-1990s as retailers began installing and using POS technology.In a single year, the level of POS transactions grew by a factor of twelve.

0

2000

4000

6000

8000

10000

12000

14000

90 91 92 93 94 95 96 97

( i n m

i l l i o n s )

Selected Electronic Transactions

ATM

POS

ACH-Gov't

ACH-Private

369#


6/19

Direct PaymentAnother form of electronic bank-ing is direct deposit and preau-thorized payments or electronic bill payment. Both are usuallycleared through the AutomatedClearing Houses (ACH) locatedat the Federal Reserve Banks andtheir branches. These paymentmethods are two sides of the samecoin. Direct deposits are automat-ed credits or increases to the con-

sumers account. Preauthorized bill payments are automated deb-its or reductions. Unlike ATMand POS transactions, no accesscard is needed.

Direct deposits are increas-ingly used by employers, govern-ment agencies and other organiza-tions that make regular payments,such as wages and dividends, toindividuals. According to 1996figures from the National Auto-mated Clearing House Association(NACHA), about 60 percent of U.S.households receive their wagesvia direct deposit.

The U.S. government is thelargest single user of direct de-posit. More than 95 percent of

government workers use directdeposit. And many of the gov-ernments benefits are paid elec-tronically. The Social SecurityAdministration alone uses directdeposit to make payments to ap-proximately five million recipientsevery month. The number of ben-efit payments made electronicallywill soon increase because of theElectronic Funds Transfer Act orEFT 99. This Act will help thefederal government make mostof its payments electronically.(See sidebar on next page.)

It is easy to receive funds bydirect deposit. A consumer firstmust authorize the deposit. Theparty making the payments, usu-

ally an employer, then creates anelectronic message. This messagespecifies the amount of paymentand identifies the financial insti-tution and account to be credited.This data is transmitted to theACH, which collects and sortsthe information. The ClearingHouse then transmits the account

and payment information to theconsumers bank. In turn, thatinstitution credits the consumersaccount.

Company Bank

Company

Company prepares payment informa-tion for ACH system and sends toCompany Bank.

How Direct Payments Work

Company notifies Customerof impending withdrawal.

Consumer

Consumer authorizes Companyto pay or collect electronically.

6


7/19

7

In a preauthorized bill pay-ment arrangement, a consumer au-thorizes a creditor to deduct funds

for automatic payment of bills.The consumer first signs aform authorizing the payment.This form indicates when pay-ments are to be made, the dollaramount, and the account fromwhich the funds will be paid. Thisform is then sent to the creditor,who makes arrangements withthe consumers bank.

Prior to each payment, thefirm will send a notification of payment to the consumer, usuallya week or two before the paymentis to be made. This notificationis itemized just like a regular bill. The consumer can check thecharges and contact the creditorif there is an error. If the con-

sumer wishes, he or she can stopthe electronic payment by notify-ing the creditor and the bank.

EFT 99EFT 99 refers to legislation requiring that most federal payments, such as social security payments, be made electronically by January 2, 1999. The legislation gave the U.S. Treasury the power to grant waivers to those who would find it difficult to

switch to electronics. In June 1998, the Treasury announcedit would grant waivers to consumers if a switch to electronics involved a hardship. In other words, consumers receivinggovernment benefits can choose whether those payments are electronically deposited into their accounts or sent as a paper check. Those who do not sign up for direct deposit will con- tinue receiving paper checks. They also may be required to file a written waiver, depending on the federal agencies involved.However, social security recipients will not have to file a waiver.

Many people receiving federal payments are already paid electronically, but its estimated that more than 10 million dont have a bank account. This includes the elderly, homeless, poor,recent immigrants and others in special circumstances. These groups will receive an automatic waiver from the EFT require- ment until accounts can be made available to them at a reason- able cost. When that happens, those payment recipientswill have the option of choosing direct deposit or continuing

to receive a paper check.

Federal Reserve ACH Department

ACH accepts payment information from participants and sorts informationto Consumers Banks nationwide.

Consumer Bank

Each Consumer Bank receives ACH items daily, which are posted to Consumers accounts.

Periodic statementis returned to Consumer.


8/19

8

Electronic bill payment ismost commonly used for recur-ring payments such as mortgage

or rent, utility bills, loans, andinsurance premiums.Electronic bill payment has

not been as popular as direct de-posit. A Federal Reserve studyfound that approximately 37 per-cent of households were usingelectronic bill payments in 1998.Only 13 percent of billers offeredan electronic alternative for theircustomers. Nevertheless, elec-tronic bill payment is growing inpopularity. One study found thatthe number of such payments in-creased by 150 percent from 1996to 1997.

The advantage of this methodfor businesses is its increased effi-ciency. Electronic transactions

cost less to process because thereare no paper checks to be trans-ported, handled, or reconciled.The efficiency of electronics canreduce costs for both businessesand the banks that process thetransaction. For the consumer,it means faster processing leadingto quick and certain payments

and receipts. Another advantagefor the consumer is not havingto worry about paying a billtoo early or sending the pay-ment too late.

Stored-value and

Smart CardsTwo electronic payment methodsthat are becoming increasinglypopular are stored-value andsmart cards. Stored-value cardsprovide a convenient substitutefor cash and checks. The cardscontain a magnetic strip thatrecords a dollar balance. The

amount is either predeterminedor established by the consumerwhen the card is purchased. Thedollar value of each transaction isdeducted until the balance reach-es zero and the card is discarded.

Most of these cards are re-ferred to as closed-system cards.That means the cards can be used

only for certain transactions inspecific locations. Public transitsystems in many large cities usethese cards, as do some universi-ties. Consumers can purchasestored-value cards in many loca-tions for use at public telephones.A type of stored-value card is evenused on many toll roads and high-ways to allow cars to quickly passthrough toll stations.

Smart cards are similar tostored-value cards, except thatthey have a computer chip insteadof a magnetic strip. The computerchip creates a rechargeable cardthat is more secure and flexiblethan a stored-value card. Themonetary balance is stored on the

cards microchip and is accessedthrough a special reader, whichoften requires use of a PIN number. When the balance is at zero,a smart card can be reloaded


9/19

9

with funds by using an ATM, oreven a home computer fitted witha special access device. Anotherfeature of a smart card is its abili-ty to carry additional informationabout the owner, such as medical

and financial data or a voice-print for security purposes.

A variation of the smart cardis the electronic purse. The purseprovides more flexibility becauseit is an open-system card. Thatmeans that the card has multipleuses in many different locations.It can be used as a credit card,debit card or a stored-value card,depending upon the ownerspreference.

Smart cards are beginning togain a foothold, although there isroom for significant growth. Smartcards are being used in a numberof ways. A number of governmentagencies are using them becauseof their increased flexibility. Theability to provide background onthe card owner makes them help-ful on military posts.

Much of the growth in smartcards has taken place in WesternEurope. Consumers in the U.S.have been slower to use this pay-ment method. Some estimate thatsmart cards will increase signifi-

cantly in the U.S. in the next fewyears. However, it may be a while before smart-card technology iswidely used in the United States.

Home BankingHome banking, which encom-passes several EFT services, is being offered by more financialinstitutions, often on the Internet.Banks are using various softwarepackages that help consumersmake financial transactions. Thesehome banking systems allow cus-tomers to debit or credit their ac-counts, confirm account balances,or even apply for a loan. Manyof them will chart spending,develop personal financial state-ments and reconcile checkingaccounts. Consumers can accessthese services using a touch-tonephone or personal computerequipped with a modem.

The Internet is expected to

be a major factor in home banking.The number of people using theInternet is expected to increasedramatically in the next few years,providing a large potential marketfor home banking. There are evenvirtual banks on the Internetthat have no physical offices inthe traditional sense. All servicesare provided through the Internet.

Not many people are usingInternet banking thus faranestimated 1 to 2 percent of house-holds. But home banking shouldgain in popularity as consumers become familiar with the Internet.

TOLL


10/19

Consumer ResistanceElectronic money is increasinglypopular. Nevertheless, many con-sumers are reluctant to abandoncash and checks.

Some consumers hesitate touse electronic banking because acanceled check provides proof of payment. This is taught widelyin many consumer finance cours-es. However, checks are not the

only proof of payment. The re-ceipt provided by retailers as partof any electronic transaction alsoperforms a similar function.

In addition, many financialinstitutions now offer a servicewhere they will keep an electroniccopy of all canceled checks ontheir computers. This eliminates

the need for a consumer to storeold checks. In this type of system,an image of the canceled checkis often returned with the deposi-tors bank statement rather thanthe actual piece of paper. Thisreduces storage problems for theconsumer and handling costs forthe financial institution. And if the consumer needs a copy of acanceled check for proof of pay-ment, the bank can provide avalid, legal copy.

Electronic transactions alsoappear on the regular statementsthat consumers receive from their

banks. Automated deposits andpayments and ATM and POStransactions all appear on thestatement. It should be checkedfor accuracy, just as checks are ver-ified. Errors should be broughtto the attention of the financialinstitution, which must work withthe consumer to resolve any errors.

Another reason some indi-viduals prefer checks is floatthe lag between the time a checkis received and deposited andthe time the funds are actuallysubtracted from the consumersaccount. But float is shrinking.In most cases, once a consumerscheck is presented to a bank bya retailer or creditor, the payments

are cleared electronically within24 hours, with the paper checkarriving later. In some cases, onlya facsimile of the check is actuallytransferred between the banksinvolved.

Regardless of float, manypeople simply like using checks.They feel they have more control

over their finances by depositingpaychecks and writing personalchecks to pay bills. These samepeople often feel they lose control by using methods such as directdeposit and automated payment.

Their sense of unease is in-creased by concerns about thesecurity and privacy of electronic banking. Some fear that a crim-inal will be able to tap into


11/19

A d d i t i o n a l I n t e r e s t

La t e fe e

telecommunication lines and stealtheir money. Others worry thata stranger might be able to accesspersonal information. Some sim-ply want to avoid using the tech-

nology they increasingly face inday-to-day life, from programma- ble VCRs to microwave ovens.And some who are comfortablewith technology simply have nottaken the time to switch to elec-tronic payments. They recognizethe advantages of electronic pay-ments but havent been motivatedenough to make a change.

Consumer AcceptanceWhile there is continued resis-tance, many consumers enjoythe benefits of electronic money.The convenience and certainty of electronic payments are attractive

to many. And the float that can be an advantage to those payinga bill can turn into a disadvantagefor those expecting payment.Nobody likes to be told that thecheck is in the mail.

Consumers using automateddebt payments dont have to worryabout paying additional interestor a late fee because of a late pay-ment. Likewise, consumers withdirect deposit dont have to makea special trip to deposit their pay-check in order to keep other pay-ments from bouncing.

11

Resistance to electronic moneymay be diminishing also as con-sumers become more aware of

security features. The initial effortsin this area came when financialinstitutions began storing infor-mation in computers, long beforeelectronic banking was even adream. Institutions have enhancedthe security of all their information by establishing strict proceduresrequiring special identificationto enter computer areas.

Security has also been im-proved through special audit con-trols and electronic encryption,which make messages meaning-less if they are intercepted by anintruder. PINs provide an addi-tional safety precaution.

Regulations also provide pro-tection for consumers. In 1978,

Congress passed the ElectronicFunds Transfer Act, directing theFederal Reserve to develop a legalframework for identifying therights and responsibilities of con-sumers and financial institutionsin the use of EFT. The resultingFederal Reserve Regulation Erequires that financial institutions

provide: written receipts of all transac-tions;

procedures for stopping preau-thorized payments;

adequate information concerningwhat to do about billingerrors, unauthorized transfers,and lost or stolen debit cards; and

limits on the costs that a con-sumer will incur in the eventof an unauthorized deduction.


12/19

12

The Federal Reserve hasrequested comments from thepublic on new rules that would

extend these protections to newerelectronic banking tools. Rulesalready extend protections to fed-eral electronic payment programs.State electronic benefits transferprograms are allowed to developtheir own rules and protections.

Another factor encouragingconsumer acceptance is the lowcost of processing electronic trans-fers compared with the highercost of clearing checks. To a largeextent this difference reflects thehigh cost of physically handlingand storing checks as opposedto simply transmitting an elec-tronic impulse. For example, theNational Automated ClearingHouse Association estimates that

it is 10 times more expensive toissue and process a paper pay-check than to process a directdeposit payment.

In the past, when most banksoffered free checking servicesto consumers, these costs did notdirectly affect depositors. Now,however, many consumers receive

interest on their checking depositswhile paying a greater portionof the actual costs of checking.

This is often done through servicecharges, higher minimum bal-ances, or per-check printing fees.

As consumers become moreaware of the costs of processingand moving paper, the advan-tages of electronic banking may become more apparent.

However, electronic bankingisnt a free service. Electronic banking requires a considerableupfront investment in technology.And there are costs for maintain-ing and improving electronic banking on an ongoing basis.Consequently, banks may passon the costs associated with EFT.

For example, consumers maynot have to pay a fee for with-drawals from ATMs if the machineis proprietary (owned by the con-sumers bank), but there may be

a charge if consumers use an ATMmaintained by a bank where theyare not a customer. Just as withany banking service, consumersshould shop around for the bestdeal. They should match the ser-vices offered by the financial insti-tution to their needs.

Finally, a factor contributing

to consumer acceptance is famil-iarity. Simply put, as more andmore people grow up with orlearn about electronic payments,they will feel more at homewith the idea. The familiarityissue is related to the learningcurve of technology. Microwavesand VCRs faced the same obstacle.But as people were introduced tothe technology, they began to seeadvantages. Just as there are peo-ple who refuse to use VCRs andmicrowaves, there may always be some people who are hesitantto use electronic money.Electronic Check

Source: National Automated Clearing House Association

Relative Cost to ProcessBill Payments

7

35


13/19

ATM Fees, Convenience Stores, and Petroleum

Many consumers have become concerned as more financial institutions (and non- financial institutions) have charged a fee for using their ATMs. Most often, these companies will charge only non-customers (people who dont have accounts with the company) for use of the ATM. However, it is not uncommon for these firms to charge a fee for using a foreign ATM (one that is not owned by the depositors bank). Some banks may charge their own customers for use of their machines, but that is not a regular practice.

The idea of charging for ATM access is relatedto the economic concept of utility. A products or services utility is its value, usefulness, or its ability to satisfy wants. There are three typesof economic utilityform, place, and time. Form utility means the product comes in a form that the consumer finds useful. Place utility and time utility

mean the product or service is available whereor when the consumer needs it.

Oil is often used to explain the different typesof utility. Oil in the ground does no one any good.First, it has to be moved to the surface. This is place utility. Second, unrefined petroleum does not work well as a fuel or lubricant. When it is refined,it gains form utility. But its still not convenient for consumers at the refinery or the well-head. Place

utility means having a refined productsuch as gasolineavailable where consumers can access it. If a gas station is open 24 hours,it has maximum time utility.

ATMs gain much of their value because they have place and time utility. They are found in a variety of locations and typically operate at all hours.

For most consumers, the main advantage of ATMs is convenience. And that convenience often involves a cost. ATMs provide consumers with access to certain banking services 24 hours a day, seven days a week, at a variety of locations. ATMs can reduce the distance consumers need to travel to do their banking as well as cut the time they spend standing in line to see a teller. Since this extra convenience sometimes involves extra costs, consumers should shop for a bank whose services meet their needs.

13


14/19

14

What Does theFuture Offer?Despite some continuing hesi-tancy, consumers seem to likethe convenience of electronic bank-ing. The widespread use of ATMshas paved the way for greater ac-ceptance of other forms of elec-tronic money such as smart cardsand POS. Direct deposit, and toa lesser extent, electronic bill pay-ment, are gaining in popularity.

In addition, as more people pur-chase personal computers and usethe Internet, home banking should become more widely accepted.

All of these factors are affect-ing the payments process. Alreadythe percentage of transactiondollars moving electronically isincreasing, indicating that con-

sumers are changing their pay-ment habits. And legislation suchas EFT 99 will encourage furthergrowth of electronic payments.

The shift to electronic pay-ments offers clear benefits to soci-ety. Processing checks is a labor-intensive, relatively inefficientprocess. Americans write about63 billion checks every year. The

costs of processing these checksis equal to 1 percent of the U.S.gross domestic product. A shiftto electronics would allow thismoney to be used in more pro-ductive ways.

As economic incentives tochange intensify, and as we be-come more familiar with newelectronic systems, EFT may even-tually equal or even surpass cashor checks as the convenient andaccepted means of paying forgoods and services. Electronicpayments are rapidly gatheringmomentum. But a cashless orcheckless financial system is stillnot in the foreseeable future.


15/19

15

Glossary

Automated Clearing House (ACH)A service used by banks to exchange electronic payments drawn on oneanother. Total debits and credits (payments and deposits) and itemizedaccounting of individual items are presented. This reduces transporta-tion expenses and simplifies the transfer of funds between customersaccounts.

Automated Teller Machine (ATM)A machine used for banking services, including withdrawals and deposits, balance inquiries, transfers, and other services. Customers access an ATM by using a plastic card encoded with electromagnetic identification such

as an access card or credit card. Transactions are processed electronicallywith the aid of computer systems.

Electronic Bill PaymentA service allowing customers to authorize their bank to make regulartransfers for certain expenses (such as mortgage, insurance premiums,utilities, etc.) from their checking or savings account.

Debit CardsPlastic cards encoded with electromagnetic identification. Banks mayissue them to customers who meet certain qualifications. Customerscan use their card to pay for purchases electronically using point-of-saleterminals. Debit cards are often issued with ATM capability.

Direct Deposit A service provided by many employers, government agencies, and otherparties. The party offering the service can transfer funds electronicallyto the appropriate financial institution, which deposits the funds directlyinto an individuals account (see ACH and EFT). The customer receivesa written notification that the funds were deposited, including the effec-tive date and account number used for the transaction.

Electronic Benefits Transfer (EBT)The transfer of public entitlement payments, such as welfare or foodstamps, via direct deposit or point-of-sale technology (see POS). Therecipient can be given an identification card, similar to a benefit card,and a PIN number to allow them to access the benefits through an elec-tronic network.


16/19

16

Electronic Funds Transfer (EFT)A generic term describing any transfer of funds between parties or depos-itory institutions via electronic data systems.

EFT 99Part of the Debt Collection Improvement Act of 1996 that mandated thatregular federal government payments be made electronically beginning January 2, 1999.

Electronic PurseA specific type of smart-card (see below). A chip in the card providesmultiple payment options such as debit, credit, and direct payment froma stored balance. The electronic purse allows for transactions with differ-ent merchants in many locations.

FedWireThe Federal Reserve Systems wire transfer service, used to move largesums of money between depository institutions such as banks, savings& loans, and credit unions.

Personal Identification Number (PIN)A code number used by the customer to authorize transactions using

an access card or some other form of electronic funds transfer. The codenumber may be assigned by the bank or chosen by the customer and isnot issued to other parties. The PIN number should be kept secret bythe customer.

Point-of-Sale (POS) NetworkA network of banks, debit cardholders, and merchants that permits aconsumer to electronically make direct payment at the place of purchase.The funds transfer directly from the account of the cardholder to the

account of the merchant (see Debit Cards).

Smart CardA card-based payment system that stores value for transactions on acomputer chip instead of a magnetic stripe. As the card is used for trans-actions, the amounts are subtracted from a balance on the chip. Whenthe balance approaches zero, the chip can be reloaded through a number of methods. These cards are often used in closed-systems for specifictypes of purchases but do not have to be so restrictive. The chip alsoallows the owner to keep a variety of information with them at all times.


17/19

17

Additional ReadingsTo order the materials listed below, write or call the Federal ReserveBank of Chicagos Public Information Center, P.O. Box 834, Chicago, IL

60690, 312-322-5111, or contact the listed address.

ACHs (Fedpoints 31)(Updated 1997, brochure)Public Affairs DepartmentFederal Reserve Bank of New York33 Liberty StreetNew York, NY 10045-0001http://www.ny.frb.org

The Story of Checks and Electronic Payments(1995, 23 pp.)Public Affairs DepartmentFederal Reserve Bank of New York33 Liberty StreetNew York, NY 10045-0001http://www.ny.frb.org

The Electronic Purse

(Current Issues in Economics and Finance, Volume 1, Number 1 ,April, 1995, 6 pp.)Public Affairs DepartmentFederal Reserve Bank of New York33 Liberty StreetNew York, NY 10045-0001http://www.ny.frb.org

Making Payments in Cyberspace

(Economic Commentary, October 1, 1995, 4 pp. )Public Affairs DepartmentFederal Reserve Bank of Cleveland1455 East Sixth StreetCleveland, OH 44114-2566


18/19

18

For Educators

Lesson Plans on Electronic Banking

The Check is not in the Mail(On Reserve #34, May, 1996, 4 pp.)Public Affairs DepartmentFederal Reserve Bank of Chicago230 South LaSalleChicago, IL 60604http://www.frbchi.org

Lesson Plan on ATM Fees

ATM Fees: Burning the Consumer at Both Ends? (On Reserve #39, January, 1998, 4 pp.)Public Affairs DepartmentFederal Reserve Bank of Chicago230 South LaSalleChicago, IL 60604http://www.frbchi.org

Lesson Plan on EFT 99

EFT99(On Reserve #40, April, 1998, 4 pp.)Public Affairs DepartmentFederal Reserve Bank of Chicago230 South LaSalleChicago, IL 60604http://www.frbchi.org


19/19

Dec 1999 3m

230 South LaSalle StreetChicago, IL 60604-1413Phone: 312-322-5111Fax: 312-322-5515Web: http://www.frbchi.org

electronicmoney fed chicago

Documents