There is no question that banking plays an essential role in our financial well-being. So, how can you make the most of it? Explore what credit cards have to offer in terms of rewards. Discover the difference between a money order and a cashier check. Learn more about the contingencies used by banks to address when their computer systems go down. For additional questions about banking, contact Alex, our expert banker, at: email@example.com.
Question: What type of rewards do credit cards offer? – Alvin from Grand Forks, North Dakota.
Answer: Rewards programs for credit cards are broken down to three categories: cash, points and travel. The cash rewards credit cards give their customers a certain percentage of cash back based on what is spent. For example, the Chase’s Freedom Unlimited credit card offers 5% cash back on travel purchases, 3% cash back on drugstore and dining purchases, and 1.5% cash back on all other purchases. The points rewards credit cards allow their customers to earn points based on the amount that is spent. Once enough points are accrued, they can be redeemed for valuable items. For example, the points for the U.S. Bank FlexPerks credit card can be redeemed to book travel (flights, hotel stays and car rentals), purchase merchandise and gift cards, be used as statement credit, or get cash back. The travel rewards credit cards allow their customers to earn miles that can be redeemed for airline tickets. Additionally, the United Explorer credit card earns two miles for every dollar spent at restaurants, on hotel stays and United Airlines purchases, and one mile for every dollar spent on all other purchases.
Question: What is the difference between a money order and a cashier’s check? – Gil from Little Rock, Arkansas.
Answer: Cashier’s checks and money orders are both monetary instruments whose funds are guaranteed. The biggest difference is that a money order can be purchased for up to $1,000 while a cashier’s check has no set limit. Because of that, the fee for a money order is generally less than that of a cashier’s check. Another distinction is that cashier’s checks can only be purchased at a financial institution while money orders can also be bought through the U.S. Postal Service, convenience stores, drug stores, grocery stores, and check cashing companies. Finally, in order to purchase a cashier’s check, the payee’s name is required, and it can’t be made payable to cash. On the other hand, with a money order, the purchaser fills in the pay to the order section.
Question: How do banks service their customers when their computers go down? – Danielle from Augusta, Georgia,
Answer: Banks have contingencies in place when something unexpected happens. The severity of the issue will affect the bank’s response. For a simple issue like the computers going down for a short period of time, the bank will typically have their branches stay open and process very limited transactions (i.e. simple deposits and small cash withdrawals). Handwritten receipts will be given, and the transactions will be officially processed as soon as the computers are back up. Keep in mind that the tellers and bankers will not be able to view the customers’ account information including account numbers, balances, signature cards and transaction history. If more complex transactions need to be processed, my recommendation is to use alternative channels like online/mobile banking and the ATM. Otherwise go back to the branch when the computer system is restored.
Written by: Alex Sanchez, Branch Manager
Important: For your specific questions about banking, contact your banking expert, Alex, at: firstname.lastname@example.org
Alex is starting his 17th year in the banking industry. He has worked for such notable banks as Bank of America, US Bank, and Chase. Alex has his bachelor’s degree in Business Economic from the University of California Riverside.