How Online Banking Works

  1. Opening Accounts

    • Opening an account for an online bank requires the account holder to either sign up at a local branch, send in a paper application or apply directly using the online banking website. Typically, the applicant will be required to supply a full name (including a middle name), date of birth, personal address and telephone contact information. He will also need to provide a Social Security number (or government identification), work telephone and a driver's license number or military identification with issuing state and expiration date. Several days are required to load the information and set up the account to ensure the online security checks are working properly. Most banks have the option of accessing the account by cell phone, computer or PDA.

    Services

    • Once the general account has been set up, the user is able to select features. Users enter by logging onto the main site and entering a password. Access is then available to checking and savings accounts. Banks allow account holders to transfer money between savings and checking or checking to checking. This can also be done between accounts at different banking institutions. If the account is used for online and paper, many banks offer online scans of paper checks. Most banks also offer bill-paying services. Integrated budgeting and copyrighted services, such as Wells Fargo's service called "My Savings Plan," are available from many banks. This service allows a set amount of funds to be removed each month. Many banks, including Merchants & Southern Bank, allow the account holder to integrate files from Quick Books, Microsoft Money and Quicken into their online account.

    Security

    • Banks require security information to verify the user. The mother's maiden name or the last home address is usually used. Many banks allow users to also record a security word. This information is used if the bank believes that account security has been breached. A telephone call from an individual banker will substantiate identity and the account will then be reopened for online access. Passwords are typically issued using a combination of letters and numerals, but these may be changed once the information arrives via snail mail at the physical address listed in the contact information. Many banks also allow the user to select an online security image (called a security or site key) as a form of online bank identification. The site key is one way to quickly identify an authentic banking site. Another way online banks incorporate security is with the use of secure websites, which use special security programming to block others' viewing information and are easily identified by the use of an "s" in front of the web address.

    Disadvantage

    • One of the few transactions that online banking is not able to accommodate is a cash withdrawal. If the online bank partners with brick and mortar banks as part of a cooperative such as Star, LINK, PULSE, or Plus, then ATM cash machines displaying the appropriate affiliation may be used locally to obtain cash from the online account.

Related Searches

References

Resources

You May Also Like

  • PayPal Cancellation Information

    PayPal has become the largest virtual, online ecommerce banking interface. ... The payment solution works effectively for individual payments for goods online...

  • How Does Electronic Banking Work?

    Banking was once paper-based, meaning that people wrote checks and withdrew paper money to perform their everyday financial transactions. More recently, electronic...

  • How Do Online Bank Loans Work?

    The rise of online business transactions has resulted in more consumers choosing to apply for and close bank loans online. When applying...

  • How Does Foreign Currency Banking Work?

    There are several definitions for foreign currency banking. You may simply be exchanging currencies at your domestic banking institution or opening a...

  • How Bank Drafts Work

    Also known as cashier's checks or money orders, bank drafts offer a secure way to transfer funds. It works like a regular...

  • How to Make My Citibank Credit Card Payment Online

    Work for Yourself; Your Business. Starting a Business; Managing Employees; ... using your bank's online banking system, or using the Citibank website....

  • How Does Online Credit Card Processing With a Bank Work?

    Businesses that accept credit cards as payment have options to process online transactions. Typically, banks that already have a relationship with a...

  • Is Online Banking Safe?

    Online banking is a phenomenon that has grown in the last decade. However, many people question its safety. ... How Do Online...

  • The Definition of eBanking

    E-banking, or electronic banking, refers to all types of banking transactions performed electronically, without visiting a brick-and-mortar bank. ... How it Works....

  • Security Issues With Online Banking

    Security Risks With Online Banking. ... How Online Banking Works. Online Banking Laws. How Online Banking Started. Featured. Facebook Pages. Watch Video.

  • About Electronic Bank Transfers

    If you do your banking online, manage your own investments or send money to kids in college across the country, you know...

  • How Does a Bank Work?

    A bank works by taking people's money as a savings account and paying a bit of interest to the customer for letting...

  • Types of Online Banking

    Online banking offers you a quick and convenient way to manage your money. In fact, though it varies from bank to bank,...

  • Advantages & Disadvantages of Traditional Banks

    Online banking allows customers to complete their financial transactions over ... Companies use organizational structures to define their hierarchies and work flows.

  • What Is an Online Banking System?

    Work for Yourself; Your Business. Starting a Business; Managing Employees; Running a Business; ... Security is one of the biggest issues with...

  • What Is an Electronic Banking System?

    What Is an Online Banking System? ... An electronic check works in the same way as a traditional paper check. It is...

  • Online Banking in Quickbooks

    Online Banking in Quickbooks. ... business owner or team member that works on various projects during the day, it's imperative to your...

  • How Do Bank Deposits Work?

    Depositing cash or checks into a bank account is a process that can be done at a bank branch or through an...

  • How Does a Bank Repo Work?

    How Does a Bank Repo Work?. The term "bank repo" describes real property undergoing foreclosure by a financial lender. ... such as...

  • Online Banking Advantages & Disadvantages

    Online banking is less expensive for the banks because of the lack of paper and postage involved, ... How Does Internet Banking...

Related Ads

The infamous day of deals can be great for some, but there are alternatives Read Article

The infamous day of deals can be great for some, but there are alternatives