February 22, 2021, 8:34 AM
In our increasingly electronic world, debit cards are everywhere. They’re fast and convenient, they’re secure and, because they withdraw funds from your account immediately, you’ll find out instantly if you don’t have sufficient funds in the account to cover the purchase.
So why should you learn how to write a check? It’s pretty simple: Sometimes, you don’t have another option. And if you do it wrong, it can cost you.
When might you want or need to write a check?
· When a business charges an extra fee for card payments. Governmental agencies and utility companies may accept debit or credit cards, but their third-party payment processors charge a fee on each usage. By writing a check, you actually pay less.
· When a business requires a minimum amount for card payments. Because of the fee businesses must pay on card transactions, your small purchases using a card might actually cost them money. To prevent this, they may not allow card payments for small amounts.
· When a business doesn’t accept card payments. From insurance and governmental transactions to donations, organization dues and rent, a variety of purposes still may require a check.
· During outages. Debit and credit card transactions require electronic equipment, which may not work if the power or phone systems aren’t working. In that situation, you’ll need cash or a check.
· When gifting money. Gift cards restrict where a recipient can use the money, and cash can’t easily be replaced if it’s lost, whereas checks solve both problems. After the check is deposited, the money can be used anywhere by the recipient, and if the check goes missing, you can always void it and send a new one.
Now you know why you should write a check, let’s talk about how to do it.
Writing checks correctly is important because, if you don’t, the check may bounce – that means, the funds won’t transfer and you’ll end up paying a fee for the failed transaction.
If you write a check without sufficient funds in your account, it’s considered a “bad” check. The bank may charge you a fee and, if you do it repeatedly, you could lose the ability to write checks altogether, not to mention the legal problems you’re risking.
So, here’s how to write a check:
1. In the top right corner, on the line marked DATE, write the current date. While it’s not illegal to write a date that’s still in the future – called “post-dating” – it’s a good idea to tell the person you’re paying so they don’t deposit it immediately. Banks may return checks with a missing or future date.
2. On the line marked PAY TO THE ORDER OF, write the name of the person or business to whom you are writing the check.
3. In the box following the dollar sign, write the amount of the check in numerals, including both dollars and, after the period, cents. For instance, 174.29.
4. On the line below, write out the same amount in words for the dollar amount and cents as a fraction out of 100. For instance, One hundred seventy-four 29/100. Draw a line from the end of the cents to the word DOLLARS to make sure no one else can change the amount you’ve written. Double check that the written amount matches the numeral amount – this is one of the most common mistakes, and banks may return such checks.
5. On the line marked MEMO, write what the check is for. For instance, “Babysitting” or, if you’re paying a bill, the account number the check should be applied to. That way, if your check gets separated from the account slip, it can still be processed.
6. On the final line in the bottom right corner, sign your name. This is one of the most important parts. Banks absolutely will return unsigned checks.
7. You’re done writing the check. Take another look at each blank. If you see a mistake, it may be possible to simply cross through it, write the correct information above it and initial the change. For more serious errors, write VOID in large letters across the entire check, flip to the next check in your checkbook and redo it.
8. When you’ve double checked everything, and the check is ready to give to its recipient, don’t forget to list it in your check register so you have a record of it later on, particularly if you don’t have carbon copies in your checkbook.
Happy check writing!
February 01, 2021, 4:33 PM
If you are one of the millions of people planning to shop online this year, it will be vitally important to make sure you’re doing it wisely. One of the most important questions you should ask is, credit or debit?
What’s the difference?
A debit card is similar to a credit card in that it can be used to make purchases at millions of locations worldwide. But there’s one important difference between the two.
A credit card essentially gives you a small loan, letting you pay later for the purchases you make now. If you pay it back right away, it won’t cost you any more than the initial purchase. However, if you can’t pay it off that month, you’ll be charged interest, meaning you ultimately pay more. Whether you pay it back immediately or take your time, using a credit card and paying it off builds credit. That means when you need a good credit score for a big purchase – think, a car or a house – you’ll have it already, just by virtue of your normal, everyday purchases.
By contrast, a debit card purchase is immediately deducted from your checking account – there’s no borrowing, so no credit check is required to get a debit card, you won’t incur debt and there are no interest charges or late fees. However, because the money comes out immediately, if you try to spend more than you have in your account, you could incur an overdraft fee1 depending on how your account is set up. Keep in mind, also, that your card may have a limit on how much you can spend each day.
Which is more secure?
You know that new microchip on the end of your credit and debit card? It’s designed to make it harder for someone to fraudulently collect your card information. The bad news, and what you may not know, is that technology doesn’t extend to online purchases.
The good news, though, is that card purchases still carry certain protections online.
Federal protections are greater for credit card purchases. Thanks to the Fair Credit Billing Act, if your credit card number is used to make a fraudulent purchase and you report it within 60 days, your liability is capped at $50.
Also, if your purchase arrives broken, doesn’t arrive or if the wrong item arrives, you are able to dispute a charge or withhold payment. All card issuers will help you file a dispute but credit card companies are especially helpful. Think about it this way: With a debit card, the money has already come out of your account, so it’s your money on the line. With a credit card, the card company’s money is on the line – which situation will they work harder to remedy?
With debit cards, because the funds come out of your account immediately, fraud could cost you everything you have – plus overdraft1 charges if the thief tries to use more than you have. City Bank mitigates this with daily limits and the option to opt out of overdraft completely but this may not be the case for all debit cards. Under the Electronic Funds Transfer Act, if your card is Compromised –– you have 60 days to report a fraudulent charge with no liability. Remember, though, that 60 days begins on the first day of the statement period in which the charge occurs, so you need to monitor your statements carefully.
Which is the better choice?
A credit card almost certainly offers more fraud protections, but not everyone can get a credit card. If you don’t have a credit card, you can still limit your potential loss by taking a few simple steps. One option is to limit the amount of money in the account you’re spending from, so no more money is at risk than you intend to spend immediately. Another option is to use a prepaid card onto which you’ve loaded only a set amount of money.
You should know, using a debit card works slightly differently for online purchases than for purchases in stores. Unlike purchases at a checkout counter, you will have the option to provide your personal identification number, or PIN. Online purchases are processed as a “credit” transaction, meaning funds may be pending on your account until hard posting about 2 – 4 days later.
City Bank, like most credit card issuers, offers rewards on their cards2. This could be in the form of cash back, travel rewards or some other benefit. Why not cash in on your spending, especially if you plan on paying it all off at the end of the month.
Another point to consider is where you’re shopping. If you’re shopping from a reputable, well-known online retailer, the debit vs. credit card debate is probably a moot point, as the company likely will work to rectify any problems without involving your card issuer. But if you’re buying from a company you aren’t familiar with, a credit card might be the way to go.
So, which is the better choice? In short, it depends on the situation and, especially, on you. If you’re more likely to overspend while shopping, it might be a better idea to use a debit card to limit yourself. If you’re more concerned about potential fraud, a credit card might be the better call. Don’t hesitate to contact your local City Bank representative for more info on our Credit and Debit Card offerings.
Either way, happy shopping!
Here are some tips to make the most out of your online shopping experience:
· Check the URL. Sites that begin with https:// and show a locked padlock icon in the URL space have added security measures to protect your card information. Sites that begin with http:// do not. Remember, no “s” = not secure.
· Use a secure Wi-Fi connection. Not sure if it’s secure? Wait until you’re at home or work to do your online shopping.
· Use common sense. If a website seems unprofessional or if something just feels wrong, it probably is.
· Be vigilant. You can’t fix fraudulent charges if you aren’t looking for them, so check your account regularly.
· Pay off your balance. If you pay your credit card balance every month, in full, you will never have to pay interest. This ultimately could save you lots of money.
1Always a discretionary service: Overdraft Protection does not constitute an actual or implied agreement between you and City Bank. 2Subject to Credit Approval. Ask for details.
April 02, 2020, 11:06 AM
As we continue to navigate through evolving safety measures, we must make the choice as a community to embrace our new normal. Now more than ever, local businesses are facing some of the most challenging, unprecedented times — and they need all of us.
We can all play a part in flattening the curve and boosting our local economy by supporting our local makers. Small business owners have adapted and retooled the way they do business to better serve our community, so let’s celebrate their efforts by shopping, eating, engaging and supporting all things local.
Here are some of our favorite ways to support the local businesses you love:
- Shop online
- Purchase gift cards
- Order takeout (perfect for date-night-in or family game night)
- Pickup food at the drive-thru
- Reschedule salon services instead of cancelling (or pre-pay for appointments)
- Subscribe to online workout classes from local workout studios
- Review, comment, like and share your favorite businesses on social media
March 24, 2020, 4:45 PM
A Legacy Cornerstone Partner of 25 years steps up to pledge $150,000
[Lubbock, TX] – City Bank will present a check that will provide relief to the South Plains Food Bank immediately with $30,000 toward the COVID-19 Pandemic and a total of $150,000 over 5 years. An original Cornerstone Partner, City Bank has been a supporter of the mission to End Hunger, Give Hope and Enrich Lives since 1994.
The donation is coming at a pivotal time for the food bank, according to South Plains Food Bank CEO, David Weaver. “In these very uncertain times, this gift will help make an immense impact on our neighbors who are and will be struggling for months to come.” says Weaver. “With needs increasing and changing daily we are all attempting to navigate the COVID-19 pandemic. Once again City Bank is stepping up to help with critical basic needs on the south plains. This contribution will help for years to come as our community works to come back from this crisis.”
“City Bank is proud to partner with the South Plains Food Bank in these unprecedented times and in the brighter days ahead. As a long-time community partner, we know the needs are great and we want to do all we can to provide the resources to meet those needs today, and in the years to come,” said Cory Newsom, City Bank President and CEO.
About the South Plains Food Bank
Food banking solves two problems ... hunger and waste. The South Plains Food Bank, Inc. is a humanitarian resource responsible for securing, growing, processing, and distributing food to charitable organizations and persons in need. South Plains Food Bank, Inc. also strives to provide opportunities for persons to break out of the poverty cycle. The South Plains Food Bank is committed to alleviating hunger and giving hope to the hungry. We touch 1 in 8 people across the South Plains and serve over 57,000 people each year. The South Plains Food Bank also supports programs that improve food security among the people we serve through our Kids Cafe program, Mobile Pantry program, and GRUB, Growing Recruits for Urban Business, program. Our vision is to see a hunger-free community.
Original Press Release and Source: South Plains Food Bank March 24, 2020
September 03, 2019, 10:20 AM
(LUBBOCK, Texas) – City Bank, headquartered in Lubbock, Texas, has been named one of the Best Banks to Work For in 2019. This is the seventh year in a row City Bank has received the award. City Bank credits its company culture and employee-focused programs as two of the many reasons for receiving the distinct award.
The Best Banks to Work For program, which was initiated in 2013 by American Banker and Best Companies Group, identifies, recognizes and honors U.S. banks for outstanding employee satisfaction.
“We are honored to be recognized as a Best Bank to Work For. A great deal of effort goes into improving and sustaining the financial, physical, and emotional wellbeing of our employees,” says Cory Newsom, President and CEO. “Our company culture reflects the attention and unique opportunities we give our employees and their families. We absolutely recognize that the success of our institution is dependent on their support.”
Employees are at the heart of the City Bank culture as shown by an ultra-competitive benefits package, along with an industry-leading product referral program that pays employees cash for being advocates for the customer. Within the organization, there is an employee-administered H.O.P.E. (Helping Our People in Emergencies) fund that helps fellow coworkers with financial assistance in emergencies. The voluntary contributions to the fund are generously matched by City Bank. Plus, there are a number of themed events held outside of the bank where employees (and their families) can get together to celebrate and unwind throughout the year. Last, a leading corporate wellness program provides frequent education and screenings which also rewards employees for a healthy lifestyle in the form of money or paid days off. City Bank invests heavily in the opportunities, wellbeing, and livelihood of its employees.
Determining the Best Banks to Work For involves a two-step process. The first step involves an evaluation of participating companies’ workplace policies, practices, and demographics. In the second step, employee surveys are conducted to directly assess the experiences and attitudes of individual employees with respect to their workplace. The combined scores determine the top banks and the final ranking.
Best Companies Group managed the overall registration and survey process and also analyzed the data and used their expertise to determine the final ranking.
January 04, 2019, 8:54 AM
Whether you're going to owe big this year or get something back, it's still a chore to go through the motions and get everything submitted by that April deadline.
But, have you considered whether you are taking advantage of the right deductions? Before you submit your return, here are some of the most overlooked tax deductions that you may want to include this year.
A Second Home.
Use Schedule A to itemize any expenses related to a second home such as property taxes and mortgage interest. Remember you can count a boat or RV as a second home as long it has a bathroom and kitchen.
Not every investment is a winner, and you can take deductions on those that you sold at a loss in the prior tax year. This would be shown as reduced earnings against the same class of stocks, such as other long or short-term stocks.
FSA and HSA Contributions.
Healthcare is expensive, and you still have some hefty deductions in the form of Flexible Spending Accounts ($2,650 for 2019) and a Health Savings Account ($3,500 for an individual).
Military Moving Expenses.
While most moving expense deductions have been eliminated, members of the armed forces are still permitted to use this valuable deduction.
2018 marked a year of several natural disasters from major hurricanes to flooding to massive wildfires. If you were the victim of one of the tragedies and in a federal disaster area, you are eligible for some tax relief.
Home Office Space.
If you are self-employed or make some extra cash on the side using a home office, you can claim a deduction for up to 300 square feet of home office space.
Service Animal Training.
IRS Publication 502 states that dog owners can deduct the cost of training and maintaining a service animal to help with hearing-impaired, visually-impaired, or other physical disabilities.
If things didn't go as planned at the casino, you can deduct gambling losses (with the right documentation) up to the extent of your winnings.
Student Loan Interest.
Student loan interest is tax-deductible, and a child can even write off up to $2,500 per year even if their parents are making the payments, provided that child is not considered a dependent of those same parents.
There is now a tax credit equal to 100 percent of the first $2,000 paid in college expenses each year, plus 25 percent of the next $2,000. College expenses refer to payments for tuition, fees, and books.
Stress-Free Banking with City Bank
Whether your goal this year is to buy a home or car, save more, or start a business, City Bank can help. We offer local relationship banking combined with innovative online and mobile tools. Contact us now to learn more about how our services can help you achieve your goals.
*This is for informational purposes only and you should contact a professional tax advisor with any specific tax filing questions.