Tuesday, March 24, 2009

Electronic Banking

Research the positives and negatives of electronic banking. Share an experience you have had either way regarding electronic banking. How was the issue resolved. Was this an outcome you expected? Explain why or why not.


  1. The positives of electronic banking is it is 24 hour access to cash through an automated teller machine (ATM) and you have complete access for a direct deposit. It saves a lot of paper work as well and it could be a really useful tool when you are in a hurry or you need some cash quicky. You can deposit your paychecks in as well and Social Security checks that could be very private. You can even use personal computer banking where it lets you handle many banking transcations via your personal computer. Elecontric banking is a great form of technology as well because you don't have to fight with paper anymore and you can just use a machine. You don't have to wait in line at the bank either, it is very simple. There are not many negaitves I could think of except that when you deposit a paycheck through an ATM, it will only get credited to your account on the following work day but that should not be a problem. Another negative if someone could hack the system which is very hard to do and when you punch in your account on the ATM, some hacker could find out your information. That is very unlikely to happen, but you never know. Another negative is if power is down, the system gets messed up if it does not have a backup generator and then the whole ATM machine gets messed up. Those negatives rarely happen though. I have only had good experiences with electronic banking. For instance, one time it was around 9 pm and I needed money fast for something important and I just went to the ATM, went on my account, took out some cash and I was ready to go. It saved me a lot of time and it was very crucial in that situation. Electronic banking is 24 hours a day service and that is the luxury of it, it is opened any time. Electronic banking will be our future and no more standing in lines will be avaiable. It will all be computer based.

    "Electronic banking means 24-hour access to cash through an automated teller machine (ATM) or Direct Deposit of paychecks into checking or savings accounts. But electronic banking now involves many different types of transactions. Electronic banking, also known as electronic fund transfer (EFT), uses computer and electronic technology as a substitute for checks and other paper transactions. EFTs are initiated through devices like cards or codes that let you, or those you authorize, access your account. Many financial institutions use ATM or debit cards and Personal Identification Numbers (PINs) for this purpose. Some use other forms of debit cards such as those that require, at the most, your
    signature or a scan". - Facts for Consumers





  2. The positives of online banking are that it is convenient because people don't have to leave their home and they can see their whole account on their computer. They can save paper and check their spending more frequently stay on top of things.

    The negatives are that there may be a delay to be able to see your transactions, there could be online theft identity, and there is a good chance of having technical difficulties. People can hack into their account if they find out someones password and problems can occur. There may also be errors and you can't talk to a banker directly to fix it, so you'd have to print a hard copy and go to the bank to fix it.

    The foremost advantage of online banking is that it is convenient for customers. Rather than having to go to the bank lobby or drive-thru during business hours, they can sign on to see their account at any time. Once online, customers can see what deposits and withdrawals have been made as well as whether or not the transactions have been completed. It is easier to keep track of fees charged to accounts, especially those accumulated from using foreign ATMs. This constant visibility allows people to keep closer track of account balances, which saves them from overdrawing their account and incurring overdraft charges. Many services allow customers to view a copy of checks that have cleared simply by clicking on a link. Funds can be moved from one account to another instantaneously. If a person has signed up for Bill Paying, they can approve the electronic transfer of funds from their bank account to the recipient’s. There is no need to buy stamps, lick envelopes, or wait for bills to be received through the mail.

    Although the benefits of online banking are undeniable, there are some inconveniences and concerns of which customers should be aware. Many people have difficulty relying on the security of online transactions, fearing the very real possibility of identity theft. If you have these concerns, obtain safety information and guarantees in writing before beginning an account. There may be a waiting period between signing up for online banking and receipt of the ID and password necessary for account activation. Make other arrangements in case you are temporarily denied access to you bank account. Remember that it may take some time acclimate yourself to the bank's website and set up account information. Have at least an hour available to complete the process. If you choose to pay bills online, make sure that recipients are capable of processing electronic payments. Otherwise, it may take several days for the payment to be credited to your account, which could result in accumulated late charges. You can also avoid this problem by making all payments several days in advance of the due date. For these and any other online money transactions, remember to print out a hard copy. In the event of errors, this will be your only proof. Obviously, you will not be able to make deposits or withdraw cash from your account unless you go to a bank branch. Another occasional problem with online banking occurs when the website is down, either for scheduled maintenance or because of technical problems. Make sure that you are provided with a bank phone number in case you cannot access your account.


  3. Electronic banking is using ATM machine. During this process, the person who uses the ATM puts in a pin number, and then lets the machine know how much money they want withdrawn from their account.

    "Automated Teller Machines or 24-hour Tellers are electronic terminals that let you bank almost any time. To withdraw cash, make deposits, or transfer funds between accounts, you generally insert an ATM card and enter your PIN. Some financial institutions and ATM owners charge a fee, particularly to consumers who don't have accounts with them or on transactions at remote locations."

    I personally have never had a good or bad experience with an ATM, because I have never used an ATM. My account is a checking account and I do not like to use ATM. I do not carry any credit cards with me because of fear of losing them.

    A positive when it comes to using an ATM are that you can withdraw money wherever there is an ATM. Say you have been on the road for a while and run out of cash. You can go to the nearest ATM, and withdraw some money from your account. Negatives of electronic banking like Michelle said, were technically difficulties. Since everything is online it could be hacked by someone and you could potentially lose all of your money. There could also be no banking systems available, they could be in repairs or upgrading the system.

    Having everything online could also save you trips to the bank, you can check the status of your account from the comfort of your home. It can save you gas and time, which is something that many of us do not have in our busy lives.


  4. The positives of electronic banking is that you can take out cash whenever you need it without the bank having to be open. You can take out cash where ever an atm is. Such as the movies in redwood city, if your short on cash for a movie ticket, the theatre has an atm so you can get the money you need. You can also pay off bills online without wasting gas and paper because you can just do it all at home.

    The negatives of electronic banking is that the machines can fail like Michelle said. I have heard of people hacking less than a penny a day from a handfull of bank accounts allowing them to receive huge sums of money everyday and no one notices because they take less than a penny. Another negative is that while your using an atm, someone could rob you right after because they know you just received money. I also heard that there is a camera on the atm but it is only on when money is being taken out of the atm.


  5. RobertinoS1,KyleL1March 29, 2009 at 4:10 PM

    Kyle and I believe that the positive of electronic banking is that you can access your bank account through the comforts of your home without having to drive down to the bank and waste your time doing so. Electronic banking is fast and convenient, and it is accessible for 24 hours. Another positive for electronic banking is that you would not need the bank to be open to withdraw money. There are many ATM machines available in almost everywhere it is needed. The negatives for electronic banking is that you do not have the confidence of handling your money electronically because it is being handled by the computer and not a banker. ATM machines are also a bad place to be in at night because of the danger of being robbed since it is a source of cash for a lot of people. Sometimes the machines fail and you take longer to access your account than if you just went to the bank and talked to a banker.

    One issue that I experienced using electronic banking was that it showed that my checking account was zero online but I knew that I had a reasonable amount of money still in place and I knew that I never purchased anything before, so I had to go to the bank and file a complaint and it showed that I was right. There are some flaws in the system of banking but it is not perfect and eighty percent of the time it works fine.
    There are many positives about electronic banking and a few negatives but all in all in gives us convenience and saves us money.

  6. The pros of oneline banking is that it is very convenient for customers. They are able to see their account at any time and are able to see what deposits and withdrawals have been made. They can also see whether or not the transactions have been completed. They also are able to keep track of fees charged to accounts especially those accumulated from using foreign ATMs. Banks also save money that they would be spending on paying tellers and printing paper records. The cons are Many people have difficulty relying on the security of online transactions, fearing the very real possibility of identity theft.There may be a waiting period between signing up for online banking and receipt of the ID and password necessary for account activation.Another occasional problem with online banking occurs when the website is down, either for scheduled maintenance or because of technical problems.

    I do not have a personal experience with online banking, my parents don't allow me to use anything but cash and I don't have my own account. I'd rather have it the way I do though, I wouldn't want the responsibility of my own banking account.


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  8. The only positive I see for electric banking is the fact that you can do your banking anywhere there's a computer or cell phone. For me, I'm too paranoid by the fact that some hacker can hack into my secure banking system and mess with my bills and account.

    Protection through single password authentication, as is the case in most secure Internet shopping sites, is not considered secure enough for personal online banking applications in some countries. Basically there exist two different security methods for online banking.

    Most of the attacks on online banking used today are based on deceiving the user to steal login data and valid TANs. Two well known examples for those attacks are phishing and pharming. Cross-site scripting and keylogger/Trojan horses can also be used to steal login information.

    A method to attack signature based online banking methods is to manipulate the used software in a way, that correct transactions are shown on the screen and faked transactions are signed in the background.

    A recent FDIC Technology Incident Report, compiled from suspicious activity reports banks file quarterly, lists 536 cases of computer intrusion, with an average loss per incident of $30,000. That adds up to a nearly $16-million loss in the second quarter of 2007. Computer intrusions increased by 150 percent between the first quarter of 2007 and the second. In 80 percent of the cases, the source of the intrusion is unknown but it occurred during online banking, the report states.

    There exist several countermeasures which try to avoid attacks. Digital certificates are used against phishing and pharming, the use of class-3 card readers is a measure to avoid manipulation of transactions by the software in signature based online banking variants. To protect their systems against Trojan horses, users should use virus scanners and be careful with downloaded software or e-mail attachments.


  9. Nathalie 1 & Sydney 1March 31, 2009 at 12:58 AM

    We have had many experiences and first hand accounts dealing with electronic banking. Some pros to the banking electronically include access to you checking, savings, and other accounts at all times. It also decrease the amount of people at the bank, giving tellers and members with important financial questions, unlike making transfers or checking their balances, more time to assist those in need. It also decreases the amount of paper used. All information is accessed via internet or through an electronic teller. This helps the environment and helps people not loose papers with valuable information on them because they can just look up the information on the computer when ever they need it. Generally, electronic banking is very convenient for people on the go, who need to make quick deposits, transfers, withdrawals, or check their balances.

    Some negatives on online banking are technical glitches. Using any piece of technology, automatically gives you regular glitches and sometimes crashes in servers. This can be irritating because if you need to access your account and cant long into the bank system, you have to go to the bank and do the easy work in person.
    Another negative could be identity theft or people trying to hack into your account. Cameras are placed at bank atms that try and reduce problems but if you leave a valuable piece of information behind, like your card or a printed receipt, someone could try and access your account.

    My issue with electronic banking was with an atm machine at a fair. My parents used an atm machine at the San MAteo County Fair one year and apparently, the machine recorded their credit card number. LAter, while my mom was doing her book keeping, she noticed may charges on one of our cards, in out of state locations. Luckily, the bank contacted my mom and asked her if the purchases were hers. They froze all the cards and stopped the transactions from the other parties. They sent new cards with new numbers. In this case there is a good and bad. The bad part is that you cant really trust random atm machines because you don't know who they belong to or if they will try and steal your information, and the good this is the fact that the back was connected with my parents electronically, they could realize very quickly that the recent activity on the card was not from them. They froze the money so the card number couldn't be used and contacted my family quickly.
    The outcome was much higher than expected and the fact that the back had electronic alerts and could alert us before it was out of hand was very impressive.



  10. My experience with online banking has been quite positive. I have an account with Bank of America and I use their online banking sometimes to check up on my account. Typically, I use online banking to see how much money I have in my debit account or to transfer money from my checking account to my savings account and vice versa. Online banking is quite convenient. You can save paper, money, and gas by not having to go and do your bank at the actual bank. In addition, “Bank customers who pay bills online are over 15% more profitable and 76% more loyal than those that don't, according to a study sponsored by Fiserv”. The negative aspects are security, but banks are doing more these days to ensure that your money and account are safe.


  11. The big positive with electronic banking is the convenience. People now have twenty-four hour access to their money through an ATM. Electronic banking allowed people to access to their money at anytime, even after banks closed. It is now more convenient since now most banks offer banking online, which allows people to do a lot of the services where ever they want and they don’t have to go to the bank.
    One major drawback to banking online is the risk of identity theft. Some could hack the system and be able to access your account. That is unlikely. A more likely situation that happened to my family is that a laptop was stolen from one of the employees of the bank. The laptop contained information about my and my parents account. That was only bad experience I’ve had. Almost every other experience I’ve had with electronic banking has been positive.

  12. To me, like many, electronic banking just means weekly or even monthly usage of the ATMs. To others however, it many mean other electronic banking sources such as Direct Deposit, Pay-by-Phone systems, E-banking, etc. Using the ATM, doesn’t seem like it would pose many negatives, other than the outrageous fee of using another bank’s teller, because one can withdraw cash, make deposits, and transfer funds easily without hassle. To avoid the one negative, one would just need to check their bank’s policy on fees, or only use their bank when making transactions. However I have the biggest problem with E-banking, because it seems as though it’s fairly easy to ‘hack the system’ in order to get one’s banking data. Although the pro of its convenient usage is very appealing, its negative of aspect of the possibility of identity theft is far less. A friend of my mom’s years ago was telling me how she found extra charges on her debit card, that she nor husband had made. They did their banking online, and found out someone had hacked their account. Fortunately they addressed the issue, and called their company, but had they not found out of the charges, the person draining their account could have persisted until they were forced to notice long bills of charges. In a world where making a daily habit more convient, whether by E-banking or even Ipod-banking, problems are more likely to arise, because hackers are cracking the system hoping to find a way to drain your accounts.



  13. To me electronic banking is a big convenience. It allows for the checking of ones personal banking status almost anywhere, and allows you to effortlessly manage your money and pay bills online. So to me it's sweet. But the problem I have with it is when canceling a credit card and trying to unlock the account, it won't read the new card, even when the card is activated. But this will be resolved with a trip to the bank.

  14. I think electronic banking is super convienent. You can do it from your house or on your phone and it makes life a little easier. For example, my sister has the iPhone and we were at a store, and she happen to buy a lot of clothes than expected, so she quickly transfered money on her phone to her card in a matter of seconds. It was so easy and just saved a lot of time. ATM machines for me are also convienent as well because you don't have to go inside and there is always an ATM nearby. A disadvantage of electronic banking is that sometimes paying bills online can be risky. You can't always trust paying online because your computer may freeze or it can be a scam website. I do go inside banks to deposit money though, you can't fully put trust in machines, I need to actually see my money go into the right hands and in my account.

    "This can be very useful, especially for banking outside bank hours and banking from anywhere where internet access is available. Since the internet revolution most retail banking institutions offer access to current accounts via online banking".


  15. With online banking you still pay your bills by mail and deposit checks at your bank branch. You can shop online for loans, life insurance, or home mortgage. When it comes time to commit you feel more comfortable working with your banker. Online banking does not change your money habits. It uses technology so you have the option of skipping time-consuming, paper-based aspects of traditional banking. Some advantages our that is way more conveient, if you are out of country you can still log on to your online bank and take care of problems, and online banking is much more sophisticated and effective. Some disadvantages of online banking are: Sometimes banking sites can be difficult to use at first, banking sites always upgrade the online programs adding new features in unfamiliar places, and many people do not trust online banking and question if they are doing things right. I think online banking is way more convienent. I rarely ever go inside the bank and just make stops at the atm to deposit checks, or get some money. I check my bank account online all the time. Some things you just have to handle by speaking to a banker and getting it resolved but overall online banking saves me a lot of time




  16. Anabel, Hayley P 1April 28, 2009 at 9:27 PM

    Electronic banking allows you to manage your money while you're at home. It saves you time from going to the bank and it also saves you gas. It's easier for us to control our money. But there are times when activating a new credit card is easier to do it at the bank to avoid delays when purchasing something. I have trouble managing my account because of the fact that I can't get an online account so it's a little more difficult figuring how much money I have to pay bills. Since December I've over drafted about ten times or maybe more. It's crazy.

  17. Online banking has its positives, but it also has its negatives. Some of the positives are its convenient because it is always open, you can always access your money even when your out of the state or country, it is faster that most ATM's. The negatives would be registering, the learning curve, bank website changes, and the trust thing. Personally I'm going to stick with the actual bank. I just feel safer putting my money in the bank in person.

  18. With electronic banking, you can see your account balances, transfer funds from a savings account to a checking account, pay bills, and often even apply for a loan- all on the Internet. You can access money from your ATM at any time which makes it really easy. ATMs are very common so you won't have a problem finding one. Online banking is very quick and eliminates the use of paper and taking the extra time to write things instead of type and click, which takes less time. iT also saves money on making transactions. You can even call and do it over the phone.

    The negatives of online banking is that the possibility of tampering and lack of provacy are increased because all records are stored in a computer. A person on a computer terminal could call up and read over or even alter the account files of a bank customer in any city, if he or she knew how to get around the safeguard built into the system. Mnay people also make computer mistakes which could mess up their account.

    I don't have a credit card or have an ATM card so I do not have a personal experience with it. But using these things seem to be very helpful. ATMs are very convenient. I like the electronic banking system and think it is a good idea except that it does make you vulnerable to hackers and identity thieves.