E Banking: The W’s (What, why, how)

ebankingWHAT IS E-BANKING?

E Banking is an up and coming hot new topic of discussion. Now before we dive into its benefits and how it’s new and modern in all its ways we need to go somewhere deep into technical terms. Electronic Banking is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick-and-mortar institution. The following terms all refer to one form or another of electronic banking: personal computer (PC) banking, Internet banking, virtual banking, online banking, home banking, remote electronic banking, and phone banking. PC banking and Internet or online banking are the most frequently used designations. It should be noted, however, that the terms used to describe the various types of electronic banking are often used interchangeably. One common type of electronic transaction is an automated clearing house (ACH) payment or deposit, which allows a merchant to deposit or withdraw money directly to or from a checking account. Bill pay transactions, which allow you to send a payment to another person or company from your bank account, also are classified as electronic transfers. Another common type of electronic banking transaction is a debit card purchase, in which the user swipes his card through a processing machine to make a payment or withdraw money from an automated teller machine (ATM) electronically. The consumer also can transfer funds between bank accounts electronically.

HOW DOES IT WORK?

Electronic banking transactions typically involve three parties — the bank, the consumer and a merchant. In some cases, only the bank and the consumer must participate to complete the transaction. The consumer initiates the transaction by either submitting the request online, going to a store or visiting an ATM machine. The bank receives the request and either approves or rejects the electronic transfer of funds based on the accuracy of the data provided in the request (card number, address, routing number or account number) and the available funds in the case of withdrawals. After processing is completed, the funds electronically transfer to or from the consumer’s account to reach the intended recipient.

TIPS AND TRICKS:

Okay now besides all of this, leaving all this informative knowledge behind, let’s get to how E banking can help you and well, some tips and tricks:

–         Always use genuine anti-virus software

To protect your computer from phishing, malware, and other security threats always use genuine anti-virus software. Anti-virus helps in detecting and removing spyware that can steal your sensitive information.

–         Avoid Using Public Wi-Fi or Use VPN software

The biggest threat of an open Wi-Fi network is that the hacker can sit in between the end user and the hotspot and can trace all the data without any difficulty. Hackers see unsecured connection as an opportunity to introduce malware into your device. So, usage of public Wi-Fi hotspots for internet or mobile banking and making payments on ecommerce sites should be avoided.

–         Change your password regularly and ensure it’s a strong one

This might sound clichéd but, it is important to keep your account safe and helps you maintain confidentiality. And needless to say, don’t share your details with anyone. Your bank will never ask for your confidential information via phone or email. If you have written your banking passwords in a notepad or a dairy, make sure it remains confidential.

Further, be sure to choose strong and long passwords.

–         Make sure your PC is sufficiently secured (for instance by installing an up-to-date version and a virus scanner or a secured WIFI connection)

–         If someone calls you up on behalf of your bank and asks you to provide personal data and/or to sign electronically, refrain from taking any action at all, for your bank will never ask you to provide this kind of information.

–         Put your electronic signature only for orders you expect or have initiated yourself.

–         In case of doubt, immediately abort the transaction and take contact with your bank, especially when the procedure for signing differs from the usual procedure. All banks have a help desk where you can find the answer to your questions about internet banking. Access to this help desk can be found on the bank’s website.

–         Check your statements of account at regular intervals for safety.

E banking is an extremely smart and reliable, practical and approachable concept that affects lives immensely, more than you can imagine. It has speed, lesser outcomes with errors and much easier when it comes to transferring funds from one to another. It’s convenient, it’s modern and its technologically growing. The wheel of progress peaks with e banking, and so should we.

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