Electronic banking, online banking and internet banking
Electronic banking or electronic funds transfer or EFT) uses computer and electronic technology as a substitute for checks and other paper transactions. It involves many different types of transactions. You can access your money through ATM (ATM), Internet (Internet and Online Banking), telephone (Pay-By-Phone) or direct deposit of wages into checking or savings accounts.
With internet banking, you can transact online through a secure banking website. E-banking is very useful for banking outside bank working hours and for banking from any place where there is internet access.
Electronic Fund Transfers (ETFs) are usually initiated through devices such as debit cards or codes that allow you to access your account in a secure manner. Many financial institutions, such as banks and credit unions, use ATM or debit cards and personal identification numbers (PINs) for this purpose. Some financial institutions use other forms of debit cards, such as those that require a signature or scan.
Electronic Fund Transfers (ETFs) offer various services to users.
1. Online banking (internet banking or personal computer banking)
It allows you to manage many banking transactions using your personal computer. With Internet access and a computer, you can view your account balance, request transfers between accounts, and pay bills electronically over the Internet. Online banking also offers such features as electronic bill payment and access to downloadable bank statements that can be imported into a personal finance program.
2. ATMs or ATMs (24-hour ATMs)
These are electronic terminals that allow you to bank almost at any time. You can use them to withdraw cash, make deposits or transfer funds between accounts by inserting a card into an ATM and entering your PIN. Some financial institutions and ATM owners charge a fee for this service, but they are required to tell you that they charge a fee and the amount before you complete the transaction.
3. Mechanism for direct deposits and direct withdrawals
Direct deposit allows you to authorize certain deposits, such as paychecks and Social Security checks, to your account on a regular basis. You can also pre-authorise direct debits so that recurring bills such as personal loans, insurance premiums, mortgages and utility bills, rent etc. are paid automatically.
4. Paying by phone
This allows you to call your bank or credit union with instructions to pay a bill or transfer funds between different accounts. To make such transfers, you must have an agreement with the institution.
6. Point of Sale Transfers
Allows you to pay for purchases with a debit or ATM card. A debit card purchase transfers money from your bank account to the store’s account.
7. Conversion of Electronic Checks
This system converts a paper check into an electronic payment at the point of sale or elsewhere.
Online banking services vary between banks, credit unions and other financial institutions. If you decide you want to use e-banking, then you should shop around for the most suitable package to suit your needs.
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