Electronic Banking Definition

Electronic Banking Definition
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Electronic banking takes several forms. Using a debit card, visiting an automated teller machine and banking by cellphone are all types of electronic banking. If you set up an online account with your bank, you can access your bank accounts from anywhere at any time as long as you have Internet access. In general, electronic banking includes any banking service or feature that is computer-based and accessible using electronic devices.

Do Just About Anything

Electronic banking offers a wide range of features. You can transfer funds between accounts and pay bills. You can send funds to a friend's bank account. Some banks let you make deposits merely by transmitting images of the checks through your cellphone. Banks offer other tools as well, such as the ability to make investment transactions and view recent, even same-day transactions.

Practice Safety

You do need to be prudent. Banks work to keep their websites secure, but if your information is lost or stolen, thieves can empty your accounts in short order. Protect your passwords. The Federal Trade Commission says to be particularly careful with debit cards and the personal identification numbers that go with them. If you report a lost card within 48 hours, your loss is limited to $50. If you delay, the cost could mount up to hundreds or thousands of dollars.