Does Online Banking Work?Banks use a variety of names for online banking services, such as PC banking, home banking, electronic banking or Internet banking. Regardless of the name, these systems offer certain advantages over traditional banking methods. * Consumers can use their computers and a telephone modem to dial in from home or any site where they have access to a computer. * The services are available seven days a week, 24 hours a day. * Transactions are executed and confirmed quickly, although not instantaneously in·stan·ta·ne·ous adj. 1. Occurring or completed without perceptible delay: Relief was instantaneous. 2. . Processing time is comparable to that of an ATM transaction. * And the range of transactions available is fairly broad. Customers can do everything from simply checking on an account balance to applying for a mortgage. Services vary from bank to bank. What services are available varies from bank to bank. Virtually all of the banks that offer electronic services allow consumers to check the balances in their accounts, transfer funds among accounts, and order electronic bill payments. More sophisticated systems allow customers to apply for loans, download information about accounts into their own computers, trade stocks or mutual funds, and look at images of their checks and deposit slips. Online Banking: The Basics The following services are applicable to on-line banking. Most banks offer: Check account balances Transfer funds among accounts Pay bills electronically Some banks offer: Apply for loans Download information about accounts Trade stocks or mutual funds View images of checks and deposit Client-based online banking uses personal finance software The "client-based" systems, in which customers use their own software, generally use personal financial managers -- specialized computer programs that help customers carry out a variety of personal finance activities. The most popular programs are: Intuit's Quicken A popular financial management program for PCs and Macs from Intuit, Inc., Mountain View, CA (www.intuit.com). It is used to write checks, organize investments and produce a variety of reports for personal finance and small business. , MECA's Managing Your Money, and Microsoft's Money. These programs typically allow consumers to do much of their work off-line, and then dial in to complete their bank transactions. These client-based systems have the advantage of allowing consumers to integrate all their banking information with other personal finance data using a single program. Although these software products can be purchased at computer stores, the versions offered by the institutions are enhanced to adapt to their systems. Some banks will allow customers to download the program for free, or will mail a copy to customers free or for a small fee. Shopping elsewhere is likely to reduce the efficiency of the system. Why Bank Online? Most electronic banks offer basic services basic services, n.pl frequently insurance companies split dental procedures into basic and major categories. Basic services usually consist of diagnostic, preventive, and routine restorative dental services. such as the ability to check savings and checking account balances and transfer money between accounts. The draw is that customers can do these things "These Things" is an EP by She Wants Revenge, released in 2005 by Perfect Kiss, a subsidiary of Geffen Records. Music Video The music video stars Shirley Manson, lead singer of the band Garbage. Track Listing 1. "These Things [Radio Edit]" - 3:17 2. without waiting in line or listening to muzak while on hold waiting for telephone customer service. It's the extras that are enticing more and more people to use electronic teller TELLER. An officer in a bank or other institution. He is said to take that name from tallier, or one who kept a tally, because it is his duty to keep the accounts between the bank or other institution and its customers, or to make their accounts tally. services. Customers can schedule their bill payments, or even make sure that they add to their dividend reinvestment plan Dividend Reinvestment Plan (DRP) Plan which provides for automatic reinvestment of shareholder dividends in more shares of a company's stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. (DRP (1) (Distribution and Replication Protocol) A W3C protocol for downloading only updated Web information (differential downloads). The Web site maintains an index of its files, including HTML pages, images and applications. ) account at the same time each month. If your bank has a brokerage arm, you may be able to buy and sell stocks through your checking account and check the current value. If it issued your credit card, you can check your account balance and transaction status. And should it hold your mortgage, you can see where you are in your payment cycle. Some banks will even e-mail you a note when your account balance drops below a certain amount. Should You Bank Online? If you're reading this, chances are you're sufficiently wired to bank online. All it requires is about eight megabytes of RAM (if you're using a bank that requires customized software See custom software. ) and around 20 megabytes of free hard drive space for downloadable account information. The real question is whether you really need to do your banking electronically. How many accounts (checking, savings, money market, CDs, IRAs, credit cards) do you have with your bank? Do you frequently transfer balances among them? How many bills do you pay each month? Is the paperwork a monthly nightmare? If your accounts are spread across several institutions, or you write just a few checks a month, it may not pay to do your banking online. How Much Does it Cost To Bank Online? Banks calculate fees for online transactions much the same way they do for their off line clientele. Many charge a flat rate for the account (usually from $5 to $10 per month) and additional transaction fees for the extras. When banks first went digital, they charged for the software that enabled customers to use their services. Now those that require special software give it away. Here are a few things to look for when comparing fees: * Is there a free trial period? How long does it last and what exactly is "free"? * Does the institution charge a flat-rate monthly fee or is it based on account activity? * Is the online banking fee in addition to or in lieu of Instead of; in place of; in substitution of. It does not mean in addition to. your regular checking account maintenance fee? * Will the bank waive To intentionally or voluntarily relinquish a known right or engage in conduct warranting an inference that a right has been surrendered. For example, an individual is said to waive the right to bring a tort action when he or she renounces the remedy provided by law for such any fees if you keep a minimum amount in your checking account? * Is there a charge to get a paper copy of a cancelled check? * Is there an additional charge to pay your bills online? (Those that do typically charge between $3 and $6 for the privilege.) * Is there an additional charge to use any teller services? * Are there any time/transaction limits when you're online? * If you transact An earlier e-commerce system for the Web from Open Market that included order capture and secure order fulfillment using credit cards, ecash and other payment systems. It included customer service and subscription administration capabilities as well as an integrated database for reporting via your bank's brokerage or money market accounts, are you charged a percentage of your assets or a flat rate? Other Things to Consider Before you make your final decision, consider the following: * If you often use the ATM machine (Automatic Teller Machine machine) A banking terminal that accepts deposits and dispenses cash. ATMs are activated by inserting a cash or credit card that contains the user's account number and PIN on a magnetic stripe. to withdraw cash or transfer balances among your accounts, you should probably use a local electronic bank. Otherwise you'll be forced to pay heavy fees you use another bank's ATM. * Make sure the merchants, lenders, and utility companies that you pay most often are on your bank's payee The person who is to receive the stated amount of money on a check, bill, or note. payee n. the one named on a check or promissory note to receive payment. PAYEE. The person in whose favor a bill of exchange is made payable. list. * Make sure the monthly statements are readable read·a·ble adj. 1. Easily read; legible: a readable typeface. 2. Pleasurable or interesting to read: a readable story. . In fact, see if you can get a sample monthly and yearend account summary. The bank's record-keeping prowess PROWESS Infectious disease A clinical trial–Recombinant Human Activated Protein C [Zovant™] Worldwide Evaluation in Severe Sepsis may be key around tax time. * Want to access your bank account from your home, your office, or any computer? Choose a bank that offers Internet services. Otherwise you're beholden be·hold·en adj. Owing something, such as gratitude, to another; indebted. [Middle English biholden, past participle of biholden, to observe; see behold. to the computer on which you downloaded the bank's software. * If you'll be transferring data from your online bank account to other personal finance programs, you should probably choose an Internet bank. * If you're concerned with security, ask the bank what measures it takes and if it can handle encrypted en·crypt tr.v. en·crypt·ed, en·crypt·ing, en·crypts 1. To put into code or cipher. 2. Computer Science messages. If you're accessing your account through the Internet, most of the newer browsers scramble messages. The Online Banking Battle Bankers fight for profits online while consumers win. Secure Electronic Transactions Secure Electronic Transaction (SET) is a standard protocol for securing credit card transactions over insecure networks, specifically, the Internet. SET is not itself a payment system, but rather a set of security protocols and formats that enables users to employ the existing are in place as Internet moves to the forefront for financial institutions. The competition is global. Financial institutions and technology firms want to set standards that advocates say will mean cheaper, quicker and more complete services. Online banking is a multibillion-dollar battle. It's an opportunity - and a threat. By connecting retailers with consumers, capital with borrowers, and investors with securities, the Internet threatens to push bankers and other middlemen to the sidelines Sidelines Hypothetical position referring to noninvolvement in a stock; merely watching. . The nation's biggest banks are bringing their customers onto the Internet, cutting costs and boosting choices for borrowers, investors, savers and bill-payers alike. But first, they have to learn to talk the same language. In a race to set safe, reliable ground rules for online commerce and streamline the often antiquated array of computer systems, IBM and Microsoft See Microsoft and IBM. have set up competing software standards and are rushing to sign up big banks as clients. Either way, online banking advocates say the changes will mean more choices and better prices for bank customers. It's an arcane ar·cane adj. Known or understood by only a few: arcane economic theories. See Synonyms at mysterious. [Latin arc struggle of changing alliances between longtime long·time adj. Having existed or persisted for a long time: a longtime friend; a longtime resident of Detroit. longtime Adjective competitors who admit they're having a hard time following their rivals' moves. The effort echoes the banks' creation of Visa and MasterCard, which unified a confusion of credit-card labels into a worldwide payment system in the 1960s. Switching banks doesn't have to be difficult For those who already own a personal finance program or enjoy learning how to use new software, the client-based approach works well. However, switching accounts from one bank to another may also require switching to new personal finance software, and customers will have to invest some time (and possibly the purchase price of the new program) in order to make the switch. It could also entail transfer of a lot of information from one program to another. A few banks have developed proprietary software for online banking, which is usually free. Again, changing banks would present the drawbacks associated with learning a new program. A handful of banks currently allow customers to choose between the older online banking systems or the Internet. However, this is expected to be a transitional approach that will stay in place only until all the online banking customers switch to the Internet. Less versatile, but less expensive The newer Internet-based systems allow users to dial in and then use the bank's own software (or that of an Internet service provider Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. , such as AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. ). Many consumers will find them easier to use than the older systems, especially customers who want electronic banking services but are not interested in doing a lot of other personal finance calculations. This interaction can be initiated from any computer, anywhere. But an Internet system is less versatile as well. It cannot consolidate extensive personal finance information within a single program. Using an Internet-based system, however, may be less expensive in most cases. In general, a bank's costs will be lower when it provides a single electronic banking service via the World Wide Web section of the Internet. The bank then supports a single computer system instead of a multitude of personal finance programs that its customers may use. Cost savings allow the banks to charge lower fees for online banking, or to simply eliminate them completely. A few large banks that have set up Internet-based systems charge no monthly fee for online banking services and electronic bill payment. Banks originally viewed PC banking as "a pilot program" or a process to be tested. But the Internet is finally taking online banking mainstream. Nick Harper
Nick Harper is a Van Nuys-based Internet consultant. Credit Card Fraud Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card or any similar payment mechanism as a fraudulent source of funds in a transaction. The purpose may be to obtain goods without paying, or to obtain unauthorized funds from an account. Avoidance Tips In today's "information-age" environment of internet purchasing, credit card fraud causes more financial headaches than ever before. Compiled below are twenty practical tips to avoiding credit card-related crimes being committed at your expense. 1 Protect your card as if it were cash. 2 Save your receipts and compare them with your monthly statement. 3 Keep a record of account and phone numbers for reporting lost or stolen cards. 4 Only give your card number over the phone if you have initiated transaction. 5 Do not write your card number on any check. 6 Do not reveal personal information when using your credit card. 7 Check your carbons and tear them up. 8 Avoid putting your card payment into your home mailbox A simulated mailbox in the computer that holds e-mail messages. Mailboxes are stored on disk as a file of messages, a database of messages or as an individual file for each message. The standard mailboxes are usually In, Out, Trash and Junk (Spam). , where thieves look for such information. 9 Report lost or stolen cards and suspicious activity immediately. 10 Know who has access to your card. 11 Do not leave cards unattended at your workplace. This is where most credit card thefts occur. 12 Do not leave your card in a vehicle. A high proportion of cards are stolen from vehicles. 13 Make sure it is your card that is returned to you after a purchase. 14 Sign or destroy your card as soon as you receive it from the credit card company. 15 Carry your card separately from your wallet, if possible. 16 Try to keep an eye on to watch. - Shak. See also: Eye your card after you hand it over to a clerk or waitress. 17 Notify your issuers of any change of address before you move. 18 Guard your PIN! Make sure it is not similar to information found in your wallet. 19 Draw a line through any blank spaces Noun 1. blank space - a blank area; "write your name in the space provided" space, place surface area, expanse, area - the extent of a 2-dimensional surface enclosed within a boundary; "the area of a rectangle"; "it was about 500 square feet in area" above the total so that charges cannot be added. 20 Do not sign blank charge slips. |
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