26-08-2017, 03:06 PM
Online banking, also known as Internet banking, electronic banking or virtual banking, is an electronic payment system that allows customers of a bank or other financial institution to conduct a series of financial transactions through the institution's website Financial. The online banking system often connects or is part of the central banking system operated by a bank and is in contrast to branch banking, which was the traditional way in which customers accessed banking services.
To access the online banking service of a financial institution, a client with Internet access must register with the institution for the service and establish a password and other credentials for verification of the client. Credentials for online banking are usually not the same as those for phone or mobile. Financial institutions now routinely assign customer numbers, regardless of whether or not customers have indicated their intention to access their online banking facilities. Typically, customer numbers are not the same as account numbers, since multiple customer accounts can be linked to a customer's number. Technically, the customer number can be linked to any account with the financial institution that the customer controls, although the financial institution may limit the range of accounts that can be accessed, such as checks, savings, loans, credit cards And similar accounts.
The client visits the secure website of the financial institution and enters the online banking facility using the customer number and previously established credentials. The types of financial transactions that a customer can make through online banking are determined by the financial institution, but generally include obtaining account balances, a list of recent transactions, electronic invoice payments and transfers of funds between the accounts of one client or another. Most banks also allow a customer to download copies of bank statements, which can be printed at the customer's premises (some banks charge a fee for sending hard copies of bank statements). Some banks also allow customers to download transactions directly into the client's accounting software. The facility may also allow the customer to request a checkbook, statements, report credit card loss, stop payment on a check, advise the change of address and other routine actions.
Today, many banks are Internet institutions only. These "virtual banks" have lower overall costs than their brick and mortar counterparts. In the United States, many online banks are insured by the Federal Deposit Insurance Corporation (FDIC) and can offer the same level of protection for client funds as traditional banks.
To access the online banking service of a financial institution, a client with Internet access must register with the institution for the service and establish a password and other credentials for verification of the client. Credentials for online banking are usually not the same as those for phone or mobile. Financial institutions now routinely assign customer numbers, regardless of whether or not customers have indicated their intention to access their online banking facilities. Typically, customer numbers are not the same as account numbers, since multiple customer accounts can be linked to a customer's number. Technically, the customer number can be linked to any account with the financial institution that the customer controls, although the financial institution may limit the range of accounts that can be accessed, such as checks, savings, loans, credit cards And similar accounts.
The client visits the secure website of the financial institution and enters the online banking facility using the customer number and previously established credentials. The types of financial transactions that a customer can make through online banking are determined by the financial institution, but generally include obtaining account balances, a list of recent transactions, electronic invoice payments and transfers of funds between the accounts of one client or another. Most banks also allow a customer to download copies of bank statements, which can be printed at the customer's premises (some banks charge a fee for sending hard copies of bank statements). Some banks also allow customers to download transactions directly into the client's accounting software. The facility may also allow the customer to request a checkbook, statements, report credit card loss, stop payment on a check, advise the change of address and other routine actions.
Today, many banks are Internet institutions only. These "virtual banks" have lower overall costs than their brick and mortar counterparts. In the United States, many online banks are insured by the Federal Deposit Insurance Corporation (FDIC) and can offer the same level of protection for client funds as traditional banks.