To maximize your time and money, explore the ins and outs of good banking with our expert banker, Alex. Delve into how contactless cards work. Find out if it is possible for your bank to run out of cash. Learn more about the penalty for robbing a bank.
Question: How do contactless cards work?
Asked by: Brad from Sandy Springs, Georgia.
Answer: With a contactless credit and debit card, a payment can be made by simply placing the card inches away from a contactless enabled payment terminal. These cards use radio frequency identification technology. When tapped, a contactless card emits a short range electronic magnetic wave that contain the card’s information along with a one-time security code that protects against fraud. These transactions are normally processed within one to two seconds and are up to ten times faster than swiping or inserting a card for payment. All the major card issuers like Visa, Mastercard, American Express and Discover offer contactless cards. They can be identified by a wave like symbol that looks similar to the Wi-Fi signal turned sideways. The symbol is located on the front or back of the contactless card and on the display screen of any payment terminal that processes contactless payments. Thousands of merchants accept contactless payments including 7-Eleven, Costco, Footlocker, McDonalds, Starbucks, Albertsons and Subway.
Question: Can the bank run out of cash?
Asked by: Jay from Des Moines, Iowa.
Answer: Bank customers can be momentarily inconvenienced when their local branch has a lack of physical cash inside the vault. This typically happens when several customers decide to withdraw large sums of cash at the same time. To discourage robberies, branches have a limit on how much cash they can have on the premise. When the supply of cash runs low, the branch might temporarily limit how much cash a customer can get until they receive their next cash shipment from the Federal Reserve Bank. A branch will usually receive a cash shipment at least once a week.
Question: What is the penalty for robbing a bank?
Asked by: Zoey from Paterson, New Jersey.
Answer: A bank robbery is defined as taking anything of value from a bank, credit union or related financial institution using force, threats, intimidation and/or violence. Bank robberies are typically tried as federal crimes because most banks and credit unions are federally insured. Under federal law, the sentence for such a crime is up to 20 years in a federal prison and fines up to $250,000. If the individual steals property of under $1,000 from a bank or credit union, they may face up to one year in jail. If the amount is $1,000 or more, the individual can be sentenced up to 10 years in a federal prison. The penalties can also increase if during the robbery a weapon is used, a person is taken hostage and/or someone is killed.
Written by: Alex Sanchez
Important: For your specific questions about banking, contact your banking expert, Alex, at: firstname.lastname@example.org
Alex has been in banking for almost 20 years. 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.
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