Many people take electronic banking as a 24 hours means of access to cash through a direct deposit of paychecks and an automated teller machine to a savings account. This method of trading involves many other types of transactions, responsibilities, rights and even fees. You can choose an electronic business which suits your lifestyle.
Electronic Fund Transfers (EFT)
Electronic fund transfer uses electronic technology and computer; it replaces the paper transactions and checks. EFTS is initiated through equipment such as codes and cards that let you consent to and access your account. Several financial institutions use debit cards and Personal Identification Numbers for this function. Other clients use kinds of debit cards that need your signature while others need to scan your information without direct contact.
Electronic Fund Transfer Services
• ATMS
These are electronic terminals which allow you to bank anytime. Once you insert the ATM card and enter your personal identity number (PIN); you can deposit cash, withdraw and transfer to other accounts.
• Electronic Check Conversion
It converts check into an electronic payment in a store or when a corporation finds your check in the mail. When you give a check to a teller, it is run through an electronic system which acquires your banking details and the amount of check. You are then given a receipt to sign and a copy of your records. Finally, the money is transferred to merchant’s account. When handling telephone and online transactions that entail your bank account you need to be more careful, you must not share your information with anyone. Be sure to check on your account more often.
• Direct Deposit
Direct deposits allow you to permit individual deposits such as social security checks and paychecks to your account on a frequent basis. You can also authorize direct withdrawals so that your bills such as insurance and others can be paid automatically. Take caution before pre-authorizing since there can be other similar companies and your money can be withdrawn wrongly. Check your bank accounts to ensure the correct payments are made.
• Personal Computer Banking
Using your computer, this allows you to handle some banking transactions, for instance, you can use the computer to pay bills and ask for transfers between accounts electronically.
• Debit Card Payment or Purchase
It allows you to pay or buy with a debit card which can involve the use of your ATM. These transactions can take place online, in person or by phone and it is same as using a credit card. Debit card transfers are speedy therefore you need to have sufficient funds in the account for a successful transaction. In this case keeping accurate transaction records is a must. Make sure you are familiar with the business before providing your debit card information to curb possible loss of money through fraud.
• Pay-by-Phone Systems
This system lets you contact your financial organization with guidelines to transfer funds to other accounts and pay some bills. For you to make transfers, you are required to have an agreement with the institution.
Online Security
Personal information is a priceless commodity. It is both your online and financial identity.
How to protect your information is paramount and here are the tips.
1. Limit Unnecessary Calls and Emails
Some emails and calls can be illegal, learn how to reduce those you get online and on the phone.
2. Protect Kids Online
Although socializing online is beneficial, it also involves risks hence educate kids on its safety and responsible decision. It will help them in future.
3. Identity Theft
Theft can affect anyone, and this risk can be reduced. If you think someone is using your details to file taxes, open accounts, make payments or purchases; report the issue to identifyTheft.gov to recover your identity.
4. Online Security
The Internet offers access to many products, information, and services. It also creates opportunities to hackers, scammers and burglars, therefore, learn how to protect all your online information.
Electronic banking is very helpful to those who use it although it accompanies a lot of challenges. Therefore, you need to educate yourself more regarding it to avoid disappointments.
Alissa Milano is author of this article. She is an economist and writer at amzn stock prediction platform.