Tom Houston, President, T. Houston Technology Group, has published “Cash Management–Desk Reference©, an invaluable reference book and training guide for Cash Management.

Cash Management. The term sounds simple—but until now, delivering the products and services was not. For years, smaller institutions have been understandably reluctant to enter the highly profitable electronic world dominated by mega-banks. It took a lot of money and skilled people to achieve any measure of success. Round two—and the Internet is the referee. Now–to remain competitive, financial institutions must provide advanced Cash Management products and services and key employees must understand the features and benefits, pricing and how to identify sales opportunities.

Houston said one of the main reasons for publishing the guide was “To provide key employees with the right answers before their customers asked.” Houston’s added, “I’m not sure–but I will check and get back to you, only plays for a short time.”

Few products have enjoyed such quick success as debit cards. Millions of consumers use the card that combines the convenience of a credit card with the ever-faithful characteristics of a check. Debit cards are producing record numbers of customers, and its strongest selling points may be that it does not require a credit check and is "risk free" from unauthorized transactions.

The appeal for debit cards may lie in its ATM-like foundation. Since the card is not a credit product -- millions more customers qualify for debit cards that would not qualify for a credit card. The acceptance among young people was predictable since debit cards fit well into a lifestyle of mobility and online purchasing. The same card can be used at restaurants, gas stations or estores, such as Amazon.com.

To overcome the number one concern of Americans shopping on the Internet -- security, Visa and MasterCard implemented "Zero Liability" policies, which dramatically changed the liability rules for consumers and banks.

According to Visa and MasterCard, if a customer is not "grossly negligent" then they are not liable for any unauthorized purchases. With the stroke of a pen, the liability was shifted to the banks that issued the cards. Trying to prove a customer was grossly negligent is a daunting task and certainly one that would require significant legal expenses. However, Visa and MasterCard rules do not infringe on ATM use and Regulation E still prevails.

Parents have discovered that college campuses are included in the 22 million locations where the debit card can be used. This new method of "monetary reach" provides parents with a highly controllable way to fund tuition, meals and educational supplies on an as-needed basis. When parents tie a college account to their regular checking account with Internet banking, they can easily monitor the balances of the college accounts and instantly transfer funds to cover any unplanned expenses.

College students are not the only group to benefit from immediate availability of cash. Many workers in the United States support families in other countries. Again, tying a second account to a primary account with Internet banking allows immediate access to funds. The American worker can set up a regular transfer from the primary account to the secondary account and the family has funds available immediately for groceries or cash. Obviously, in these cases the debit card is faster and less expensive than using a money order and the mail system.

Debit cards are becoming a staple for banking products, and despire their failure to generate significant revenue they are allowing banks to replace expensive check processing with fast, convenient and inexpensive electronic transactions.

The debit card program is available in an easy-to-use guide with a CD-ROM or workshop in your bank.

Both delivery methods include:

• Marketing Strategies
• Customer Criteria for Mass Issue
• Marketing Materials
• Policies and Procedures
• Security and Controlling Risks