- Many companies pay their employees using direct deposit. The direct deposit process involves the company creating a deposit directly into the employee's bank account, rather than issuing a paper check to the employee. The employee provides his employer with his bank account information, which the company uses to deposit the funds into the account. The employee receives access to the funds immediately on the pay date, and he no longer needs to make a special trip to the bank to deposit his paycheck.
- Kiting refers to the process of writing a check from the consumer's bank account when they know they lack the funds to cover the check. The consumer writes the check anticipating a deposit will be made into the account before the check clears the bank. For example, if a consumer expects her paycheck to be deposited tomorrow, she may choose to write a check to the grocery store today knowing she lacks the funds to cover the check today.
- An overdraft occurs when the consumer withdraws money from his account, either through the use of a debit card or by writing a check, but the account lacks the funds to cover the withdrawal. Some banks pay the debit card withdrawal or the check written, even though the account lacks these funds. An overdraft refers to the process of the account attaining a negative balance. Consumers usually encounter a service charge when this occurs.
- Online banking refers to the ability of consumers to access their bank accounts via the Internet. In the online environment, the consumer can review his balance, transfer money between accounts, pay bills or request check copies.. Many consumers prefer the convenience of online banking, and choose their banking institution based on the online services offered.