March 30th, 2017
In the past few years, security enhancements have made online banking more popular as users become more confident in using the internet in conducting transactions over the internet. Banks have taken extreme measures to insure that information exchanged over the web is nearly impossible to compromise, enabling their customers to conduct most of their business through online banking from their home computers.
As people become more familiar with all the transactions that can be conducted with online banking and more comfortable with the bank's security, they are taking more advantage of the using the services. When online banking first became available, typically it was used to check balances and perhaps print a mid-month statement, giving users the opportunity to better track their account balances.
Today, the types of services available through online banking can virtually eliminate the need for a person to visit their bank. By using direct deposit, available through most employers, the person's paycheck is deposited into their account, which can be verified through online banking. They can then pay their bills, transfer funds to other accounts, such as savings, and use their branded debit cards to make purchases on and off line.
Instant Access Means Better Financial Control
At any time, day or night, a subscriber to online banking services can conduct financial business without waiting for the bank to open or on weekends when many banks are closed. Many will even allow the transfer of funds from one institution to another, although it may not be available instantly and could take a few days to complete, but the convenience of not having to visit two different banks may be worth the wait.
Most banks, in order to reduce costs, do not send cancelled checks to the account holder with their monthly statements, and if a person needs a copy of a check, the bank will print one and mail it to them. With online banking, most companies will make an image of both sides of a cancelled check available online, which the user can print out at home, to verify a payment was made and a check was cashed. Additionally, if the customer agrees, many banks make the monthly statement available online as well.
As part of most financial institutions' online banking security protections, if a person's financial information is compromised, the bank will not hold the user liable for any unauthorized transactions. Especially if someone gained access to a customer's account through no fault of the user, any money lost is typically returned to the customer within a reasonable time and any fees assessed due to the loss will be refunded.