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Banking can be confusing!

To make it easier, weve compiled this guide and a list of
common banking terms and defnitions associated with
Higher One and your Higher One checking account.
Intro / Chapter One

Chapter Two
Glossary of Banking Terms
Welcome to Higher Ones

Banking 101 Guide. This guide was developed to help students learn about bank
accounts and Higher Ones exciting checking account choices. The guide is divided into two chapters. Chapter
One provides answers to basic questions about bank accounts. This is a great resource for anyone who is new
to banking or would simply like to review the basic features and rules associated with having an account. Chapter
Two is devoted to specifc questions about Higher One checking accountsteaching you how to make the most
of your account. So, without further ado, lets get started!
Chapter One: Banking Accounts Made Simple
What is a bank account?
A bank account is a fnancial account with a bank or other fnancial institution that allows you to deposit and
withdraw money. In other words, it is a place to keep and manage your money safely. There are several types of
bank accounts. The most common are:
Checking Accounts:
A checking account is used to deposit your money including paychecks, cash or refund checks and to
pay for short-term expenses such as rent, groceries or insurance. You can take out (withdraw) money
from your checking account by using a debit or check card, writing checks or withdrawing cash from an
ATM (Automatic Teller Machine).
Savings Accounts:
The purpose of a savings account is to put money away for longer-term needs or emergencies. Money
deposited in a savings account earns interest. Interest is the amount of money you earn calculated as a
percentage of the money you have in your account. The bank or fnancial institution where you have your
account pays interest for the privilege of using your money for other purposes such as providing loans to
other customers.
Interest-bearing Checking Accounts:
Some banks offer interest-bearing (or paying) accounts. The amount of interest paid is usually much
lower than a traditional savings account and often you are required to keep a certain amount of money
(a minimum balance) in the account.

Certifcate of Deposit (CD) Accounts:
A CD is a type of investment account in which you agree to let the bank or fnancial institution keep your
money for a specifc period of time. The bank, in turn, agrees to pay you a specifc rate of interest on the
money you keep in the account. The period of time often varies from 3 months to several years.
The longer the timeframe and the greater the amount of money deposited, the higher the rate of interest
paid. However, there is usually a penalty if you take your money out before the end of the agreed
upon timeframe.
Why is having a bank account important?
There are several important reasons for having a bank account, including:
Keeping your money in a bank account is safer than keeping cash in your home where it could be stolen,
misplaced or lost in a fre. And you dont have to worry about the bank losing your money or not being
able to pay it back. Thats because the Federal Deposit Insurance Corporation (FDIC) insures bank
account deposits up to $250,000 per depositor, per insured depository institution, for each account
ownership category.
It is really easy to pay your bills with a bank account. Todays technology offers lots of choices including
debit cards, online bill paying, automatic bill paying, and checks. There also are easy ways to deposit
money. For example, you can have your paycheck directly deposited which saves you a trip to the bank
and provides you with certainty that your money will be there when you need it.
Money Management:
Having a bank account establishes a paper trail of all your transactions. Simply put, it helps you know
where your money is going. It also provides you a record of payments in case, for example, a company
denies receiving a payment. Many fnancial institutions now offer online banking which makes it fast and
easy to check your balances and keep track of your transactions, (although you should always keep your
own record of your deposits and withdrawals). Its also easy to set up an automatic schedule for paying
your bills on time. This will help you maintain a good credit history and credit score.
Long Term Financial Needs:
Opening a bank account allows you to establish a relationship with a fnancial institution that will be
benefcial to you in the future if you require things like a loan for a car or a mortgage for your frst home.
What is the difference between an online bank and other banks?
Online banks offer the same services and protections as regular banks (including things like check writing), but they
dont have a physical building. That means all your transactions are performed through a secure, web-based portal
or website. Online banking allows you to do all your banking quickly and conveniently.
How do I get money out of my account?
There are a number of ways to withdraw money from your account including:
Debit or Check Card Purchases:
Most merchants now allow you to make purchases by using a debit card. To avoid possible PIN-related
transaction fees, always choose credit and sign for your purchase (see how to use an account for free
below). If you dont see CREDIT as an option, simply select CANCEL or hit NO for more options. You also
can use a debit card to make online purchases. Be sure the site is secure and that there is a privacy
security system indicator in plain view on the site such as this:

Also, never enter your PIN online; select credit instead to ensure your protection and avoid possible
PIN-related transaction fees.

Using a debit card to make purchases has other advantages. It allows you to keep track of your spending
and often provides protection against fraudulent purchases.
ATM Withdrawal:
You can also use your debit card to make cash withdrawals at an ATM. Usually you can withdraw money
for free if you use an ATM operated by your bank or in its network. Be sure to check your banks fee
schedule to fully understand what fees you will be charged if you use another banks ATM (usually its called
a foreign ATM fee.) In some cases, both your bank and the ATM-owing bank will assess a fee.
Online Bill Pay:
You can also pay bills online. Its easy to use and very simple to set up. If you dont already have one, you
will have to establish an online account and create a username and password. Then you will be asked to
provide information about the merchant or vendor you wish to pay, your account number with that
merchant, when you want the bill paid and the amount. You can also set up recurring payments.
Recurring payments are bills that are paid every month (or other regular time interval) for the same amount
such as a car payment.

Be careful when using your debit card to set up recurring payment-type purchases such as furniture or
other rentals. Make sure you understand the terms of these purchases and have enough money deposited
in your account to pay for these bills when they hit or are presented against your account.

Personal Checks:
While declining in usage and popularity, you also can pay bills or withdraw funds by writing a personal
check. Most banks charge you for ordering checks to cover the cost of printing and shipping, so be sure
to check your banks fee schedule.
Cash Advance:
Some banks allow you to use your debit card for cash advances. This is not a recommended strategy,
however may be warranted if you require a cash amount quickly that is over your daily ATM limit. There are
fees associated with this kind of transaction, usually based on a percentage of the amount of the
withdrawal along with a minimum fee. Be sure to check your banks fee schedule for their current rates.
Offcial Check:
Offcial checks serve the purpose of showing the merchant, vendor or other recipient that you have the
funds available to make the purchase. They are issued by the bank and provide a guarantee that the
money is available. You might be asked for an offcial or bank check when you are making a large
purchase such as a car. Online banks usually allow you to order offcial checks through their online banking
site. There are usually fees associated with obtaining offcial checks, so be sure to check your banks
fee schedule.
Wire Transfer:
You can also request a wire transfer of money to another bank or fnancial institution. Once again, there are
fees associated with making a wire transfer, so please check your banks fee schedule.
How do I get money in my account with an online bank?
There are a number of ways to deposit money into your account if you are using an online bank or other fnancial
institution. The most common and easiest way is to have checks directly deposited. For example, if your college or
university owes you a Financial Aid refund, you can choose to have it directly deposited into your bank account. Its
also a good idea to have your paycheck directly deposited. Some online banks also allow you to deposit checks by
using their ATMs, scanning checks using your computer and more recently through mobile applications which allow
you to take a picture of the front and back of your check and send it to your bank. You can also mail checks, have
money transferred in from another bank account and wire-in funds. Some online banks provide an online way for
family and friends to send money to your account. Check out your online banks website to fnd out all the ways to
deposit money.
What is a debit card?
A debit card allows you to make purchases without using cash. It also can be used to withdraw cash from ATMs
and make deposits into your bank account. Debit cards are not credit cards. When you use a debit card to make
a purchase, the funds come right out of your checking account. When you use a credit card, on the other hand,
you are borrowing someone elses money to make a purchase and agreeing to pay it back. Money is not physically
stored on your debit card. The debit card contains account information so you can access money you have in your
own bank account.
What is a bank transaction?
A bank transaction is basically a change made to your bank account. Whenever you put money into your account
or take money out, it is recorded by the bank as a transaction. This is how you and the bank keep track of how
much money you have in your account at all times. When the bank deducts funds from your account to pay a
check, the check is considered cleared. Your monthly statement from a bank will include all transactions that
occurred on your account over the last month. If your bank is online, you also can check your online statement
to see recent transactions. If your bank does not offer online access, you can visit the bank or use a telephone
banking system if available to check on recent transactions.

How do I keep track of my transactions?
Even though your bank keeps track of transactions made to your account, it is
important that you keep your own records. Most often banks will provide you
with what is know as a check register where you can record dates, check
numbers and amounts of deposits and withdrawals you make. However with
online banking and the growing numbers of ways to get money in and out of
your account, a traditional check register might not work for you.
Why is it important to reconcile my bank account?
There are two main reasons for reconciling your bank account:
1. To make sure the bank did not make a mistake
in recording your transactions.
2. To make sure you did not make a mistake or forget
about a transaction such as an ATM withdrawal
or debit card purchase.
Your monthly bank statement rarely matches what you have in your check
register because of delays in checks and deposits clearing the account,
automatic withdrawals you may not have recorded, bank services fees, etc.
Although banks process thousands of transactions a day, they can make
mistakes such as depositing someones check in the wrong account. It is
important to catch mistakes immediately. You typically only have 60 days to
correct an error so it is important that you verify that all transactions listed on
your statement are accurate. If you fnd an error, be sure to contact your bank
right away. In addition, reconciling every month gives you a chance to review
how much money you have been depositing in your account (especially if you
are saving up for something special) and how you are spending your money.
You can check your expenditure patterns against your budget plan to see
where you may want to make adjustments in your spending habits.
What does reconcile my account mean
and how do I do it?
It means making sure your bank statement is accurate by checking that the
transactions listed on the statement agree with your records. Often times there
are transactions you have made since the bank account statement date that
are still outstanding. This means they havent cleared or been posted to
your account yet. These transactions could include things such as additional
deposits, cash withdrawals and debit card purchases.
What is a PIN?
A PIN or personal identifcation number is a secret number code that is used
to authenticate a user within a system, such as an online bank account. To
withdraw funds from an ATM, for example, a user must insert his or her bank
card and then enter a PIN to let the bank know that he or she is authorized to
withdraw funds. It is important to keep your PIN a secret so that others cannot
gain access to your money. Never write the number on your card and never
share it with anyone.
Chapter Two: How to Use Your Higher One Checking Account
Can I use my account for free?
Its easy to avoid fees when using your Higher One checking account. Heres how:
Always SWIPE & SIGN when making purchases:
Select credit instead of debit when paying at the cash register with your card. It is a clever way to avoid
the PIN Based Transaction Fee. When you SWIPE & SIGN you are also protected against fraudulent
purchases with MasterCards Zero Liability policy. If you dont see CREDIT as an option, simply select
CANCEL or hit NO for more options.
Use FREE Higher One ATMs:
While you can use your card to withdraw cash at any ATM, use free Higher One ATMs at various campus
locations whenever possible to avoid Non-Higher One ATM Fees.
Frequently MONITOR your account online:
Keep track of the funds you have available for spending and avoid insuffcient funds fees by accessing
your free online statement or signing up for mobile alerts. It is updated in real-time and available 24 hours,
7 days a week.
What does MasterCard Zero Liability mean?
This means that you are eligible for protection against fraudulent purchases made with your card when you report a
card theft promptly. A complete description of this protection beneft can be found here:
What are the Terms and Conditions of my account?

Its always a good idea to log in to review all the Terms and Conditions associated with your account.
What should I do if I think there is a mistake on my statement?
If you think your statement or receipt is wrong, contact Higher One via the website, telephone or mail as soon as
possible. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or
error appeared or 60 days from when your account history was frst made available to you through the website.
1. Tell us your name, card number and account number (if any).
2. Describe the error or the transfer you are unsure about and explain as clearly
as you can why you believe it is an error or why you need more information.
3. Tell us the dollar amount of the suspected error.
If you tell us orally, we will require that you send us your complaint or question in writing within 10 business days.
We will tell you the results of our investigation within 10 business days (or 20 business days for a new account) after
we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days to
investigate your complaint or question.
We may take up to 90 days to investigate your complaint or question for errors involving new accounts,
point-of-sale (POS) transactions or foreign initiated transactions. If we decide to do this, we will credit your account
within 10 business days for the amount you think is an error, so that you will have the use of the money during the
time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we
do not receive it within 10 business days, we may not credit your account. If we decide that there was no error,
we will send you a written explanation within three (3) business days after we fnish our investigation. If we have
provisionally credited your account during the investigation and determine that there was no error, you will be
required to return any credit of funds you have received from us. You may ask for copies of the documents that we
used in our investigation.
What are the fees that I might incur when using the account
and how do I avoid them?
Fees can be easily avoided. For example:
Fee for Using a Non-Higher One ATM:
Be sure to use a free Higher One ATMs. A list of ATM locations can be found on your banking website.
Merchant PIN-Based Transaction Fee:
Instead of entering your Personal Indentifcation Number (PIN) at checkout, choose CREDIT and sign the receipt to
avoid the PIN fee. When merchants process a transaction as a PIN-less debit, the PIN fee cannot be avoided. If the
merchant prompts you to enter your PIN, you may have to hit CANCEL to change the payment type to CREDIT.
Insuffcient Funds Fee, Returned Item or Paid Item:
This fee is only assessed if you spend more than the available funds in your account. The majority of account
holders never pay an insuffcient funds fee. To ensure youre among them, sign up for our Mobile Alerts, track
your purchases and pay special attention to purchases made with an e-check or paper check, and via ACH. A
complete list of fees and how to avoid them can be found at www.HigherOneAccount.com/StudentAccount/
How can I check my most recent transactions?
To check your most recent transactions, simply log into your account. Your most recent transactions are listed right
on the Account Summary page.
You can also see a list by visiting the Recent Account Activity page:
How do I know if I am running low on money?
You can check your account balance online anytime, anywhere simply by logging in. You also can sign up for Mobile
Alerts and Higher One will alert you when your account is running low, and use Higher Ones Mobile App to track
balances and stay up-to-date right from your smartphone. Lastly, if you are keeping your own check or transaction
register up-to-date, you should have a good idea of how much money you have left in your account and whether or
not you need to add money to the account.
What is a merchant hold and how does it affect access to my money?
When using your debit card to make a purchase, some merchants may place a hold on your account to ensure
funds are available to cover the cost of the purchase. Most debit purchases remain in a pending status for about
fve (5) business days to provide merchants enough time to capture and debit the respective cardholder accounts.
During this period, the funds are held and deducted from your Higher One account balance but have not yet
been transferred to the merchant.
Contrary to popular belief, this process is not instantaneous, and can take up to fve (5) business days for funds
to be deposited in the merchants account. The merchants hold on the funds is, however, normally released back
into your account if not captured within this timeframe.
When viewing your online statement, please take into consideration that merchants do not necessarily report
transactions to us in the very order they were originally performed. In some instances, transactions may not
appear on your online account activity for one or two days. This can create a false impression of your available
balance, thus causing you to spend more than you may actually have in your account. This is another important
reason to keep a record of your transactions.

How can I deposit money directly?
There are several different ways to deposit funds into your Higher One checking account. These include:
Transfer Money:
If you have another bank account, you can easily set up what is known as a Funding Account to allow
funds to be transferred into your account via ACH (i.e. electronic check).
Friends and Family:
You can also register to have family and friends transfer funds into your Higher One account.
Instructions on how to proceed with this option can be found in the Family & Friends section
of your programs homepage.
Wire Transfer:
There are no fees associated with inbound domestic wire transfers though in some instances, the fees
associated with international wire transfers from foreign banks may be passed onto the Higher One
checking account holder.
Direct Deposit:
Another great way to add money is to have your paycheck directly deposited into your account.
Deposit checks anytime to your Higher One checking account with just a computer and a scanner. Its the
innovative way to go paperless and get money into your account fast and easy.
EasyDeposit Mobile
Take a photo of the check you want to deposit and upload it to your Higher One account for instant
depositright from your smartphone!
Paper Deposits:
Personal checks, government-issued checks and money orders can be directly mailed to Higher One.
Cash-in with MoneyPak

Simply purchase a MoneyPak with cash from any participating retailer and redeem your MoneyPak online
to transfer the money to your Higher One checking account in record time. Then use it to make purchases
or pay bills online. Learn how, at www.HigherOneAccount.com/Landing/Cashin/Index.jsp

How can I pay my bills online?
To use our free Online Bill Pay feature, simply:
Log into your account (website is provided on the back of your card).
Select Online Bill Pay from the drop-down menu under the Transfers & Payment tab.
If this is your frst time using this feature, there are complete, step-by-step instructions for adding a bill recipient,
scheduling a one-time payment, editing existing recipients, scheduling a recurring payment, etc.

How do I set up Mobile Alerts?
To stay informed about the status of your refund or changes to your account balance you can sign up
for Mobile Alerts to your cell phone.
Signing up is simple and free:
Log into your online profle.
Select Profle, click Mobile Alerts from the sub-menu. Next, choose either Learn More for more
information, or Set Up Alerts to use the Mobile Alerts feature.
Select the Set Up Alerts option. Click the check box and the Accept Terms and Conditions button.
Enter your mobile phone number and service carrier in the new page and click the Submit button to
complete your entry.
Higher One will send a test alert to your mobile phone, containing a Mobile Confrmation Code. You are required
to retrieve the confrmation code for entry into a text box via the Mobile Alerts sub-menu. Follow the easy
on-screen instructions to complete the set-up. After successfully confrming your mobile phone number, the
next step will be to set up your Mobile Alerts preferences. The preferences consist of Higher One Account
Balance Alerts and Refund Status Alerts.
Mobile Alerts notify you when:
Your refund status changes and when it posts to your account.
Your balance changes by an amount you specify.
Your balance goes below an amount you specify.
Youll also be able to use Text 2 Balance to get your balance anytime.

Note: Text message fees by your mobile service provider may apply.
Where can I nd a glossary of Banking Terms?
For your convenience, a glossary of common Bank Terms can be found in the Appendix.
An abbreviation for Automated Clearing House, an electronic network for fnancial
transactions in the United States. ACH is responsible for processing large
volumes of both credit and debit transactions between fnancial institutions. Its
rules and regulations are governed by The Electronic Payments Association and
the Federal Reserve.
Electronic payments on utilities, loans and other types of bills are all examples of
ACH debit transactions. Specifc to Higher One, a student who opts to have their
refund deposited directly into an existing bank account would constitute an ACH.
In accordance with the rules and regulations governing ACH, no fnancial
institution may simply issue an ACH transaction (whether debit or credit)
towards an account without prior authorization from the account holder known
as the Receiver.

Automated Teller Machine (ATM):
A machine that allows you to get cash withdrawals, check balances and transfer
funds and in some cases make deposits. ATMs are generally accessible 24 hours
a day, 7 days a week.

Bank Routing Number:
Your banks unique identifcation number. It is also known as a routing transit
number or RTN. Your routing number is the nine numbers preceding your
account number at the bottom left of your check.

A negotiable instrument instructing a fnancial institution to pay a specifc
amount of currency from an account.

Bank Statement:
A record of all transactions and debit/credit entries in the form of
cash, check or transfer.

Cashiers Check:
An offcial check issues by a bank. Cashiers checks are usually treated like cash
since most banks clear them instantly.

CIP (Customer Identifcation Program):
Federal banking regulations require all fnancial institutions to obtain, verify
and record the identity of their account holders.

Credit Card:
Plastic cards that can be used by the holder to make purchases or obtain cash
advances using a line of credit from the card-issuing fnancial institution.

Debit Card:
Plastic cards designed to allow you to access funds in your checking account
to purchase goods, obtain cash or transfer funds from one account to another.

Direct Deposit:
A pre-authorized payment such as a paycheck automatically deposited to
your checking account.
General Banking Terms
EFT (Electronic Funds Transfer):
The computer-based systems used to perform fnancial transactions
electronically. The term EFT is used to describe a number of different
concepts including:
Cardholder initiated transactions in which a cardholder
makes use of a credit or debit card.
Electronic payments by businesses.
Electronic check clearing.
Federally insured deposits protected by the Federal Deposit Insurance
Corporation (FDIC) for up to $250,000 per depositor, per insured depository
institution, for each account ownership category.

Fee Schedule:
List of fees charged for various banking services including: wire transfers,
overdrafts and Non-Higher One ATM activity.

Insuffcient Funds:
Account status when the account holders available balance is lower than
an amount being debited against the account.

Personal Identifcation Number (PIN):
A code used by the account holder to authorize a transaction or obtain
information regarding his or her account.

Stop Payment:
Your legal right to give instruction to the bank for stopping payment
of a check before it has been presented for payment.

Uncollected Funds:
Funds deposited or cashed against an account with a check that has not yet
cleared. Financial Institutions typically place a temporary hold on uncollected
funds, making those funds unavailable for withdrawal until the time period of
the hold expires.

Wire Transfer:
The electronic transfer of funds from one fnancial institution to another.

Transfer Money:
The transferring of funds from an outside bank account to your
Higher One checking account.

Available Balance:
The amount of funds available minus any amount on hold.
This includes all activitydeposits, credits, withdrawals or debits.

Higher One checking account online help available through Higher One
24 hours a day, 7 days a week.

Funding Account:
The bank account used to add money or fund your Higher One checking account.
The funding account is directly linked to your Higher One checking account.

Online Bill Pay:
The ability for an account holder to pay bills online.
Note: This feature is set up through your Higher One checking account.

Higher Ones cash back program that offers cash back from merchants when using
your Higher One card to make purchases.

Payeethe party at the receiving end of a payment.
Payerthe individual or entity making the payment.

Pending Transaction:
Once your card is swiped at a merchants card terminal, the transaction total may
be held for a certain length of time, allowing the merchant enough time to debit your
Higher One checking account.

Refund Preference:
The selection of how youd like to receive any refund owed to
you from your school.

Send Money:
The transferring of funds from your Higher One checking account or outside bank
account to another Higher One checking account.

Swipe & Sign:
Phrase used to promote signature based transactions with your Higher One
checking account. When using your card for purchases, you can authorize a
purchase by using your PIN or by selecting CREDIT and signing the receipt.

Note: Signing the receipt is safer and backed by MasterCards Zero Liability Policy.
When you dont see credit as an option, simply select CREDIT. MasterCard Zero
Liability policy means you are eligible for protection against fraudulent purchases
made with your card when you report the theft promptly.

Learn more about terms and details of the Zero Liability provided by Higher One at
Higher One
Specic Terms

Accounts held at Customers Bank and WEX Bank, Member FDIC.
The Higher OneCard Debit MasterCard

is issued by WEX Bank pursuant to license from

MasterCard International Incorporated. The card is administered by Higher One, Inc.
2013 Higher One, Inc. All Rights Reserved.
MasterCard is a registered trademark of MasterCard International Incorporated.
All other names and logos are owned by their respective owners.