Electronic banking involves conducting transactions using, as the name suggests, electronic means. This may involve the use of an automated teller machine, otherwise known as an ATM, or the Internet.
Online banking, which is one method of banking electronically, facilitates the completion of transactions on the bank’s website. Such transactions are protected by certain security measures and features programmed into such websites. Clients have their own individual passwords which are required to access their accounts. Also, such websites usually time out after a certain period of inactivity on the user’s end. In such a situation, the user will have to enter his log in details again to continue transacting. There are also various measures being taken to prevent the occurrence of phishing, which involves stealing a user’s personal information in order to access credit card or other bank accounts.
Online banking offers clients the convenience of engaging in a variety of transactions, such as transferring funds from one account to another, opening new accounts, paying credit card and other bills, as well as applying for loans. Aside from allowing customers to carry out such transactions, online banking also makes it easier for them to track financial activity and plan any financial activities more easily.
Another form of electronic banking involves the use of electronic equipment to read information from cards in order to facilitate electronic fund transfers. One can simply present a debit card to the cashier when making a purchase. The merchant then runs the card through a machine which can access bank account data. A deduction is then made from the account, this making payment cashless and quick.