Computers in Banks

Numbers printed in magnetic ink

• cheque number
• sort code- details of the bank and branch where the customers account is held
• customers account number

Cheques read by an MICR

This is quicker and more accurate than processing cheques by hand

Magnetic ink characters are difficult to forge and can be read even if the cheque is damaged or the characters have been overwritten

ATM stands for Automatic Teller Machine - cash machine or hole in the wall

Cards contain data stored in a chip or magnetic *****

The customer has to enter their PIN (Personal Identification Card)

Card and PIN are verified

ATM's mean banks can employ fewer cashiers and offer a 24- hour service

Home banking uses the internet or telephone to give the customer access to their bank accounts 24 hours a day.

Problems for banks:

High level of system security needed

Still not secure- accounts are still broken into and used by hackers

Benefits for the banks

Paper costs are lower

less storage space needed