Internet banking is an electronic payment system that enables customers of banks to conduct transactions on a website operated by the them, such as a retail bank, virtual bank, credit union etc. Internet banking is also referred as online banking, e-banking, virtual banking and by other terms.
To access a financial institution's internet banking facility, a customer with Internet access would need to register with the institution for the banking services, and need to set up a password and other credentials for customer verification. The credentials for online banking are normally not the same as for telephone banking. Financial institutions now routinely allocate customers numbers to customers, whether or not customers have an intention to
You can use electronic funds transfer to: • Have your salary deposited directly into your bank • Withdraw money from your account from an ATM machine with a personal identification number (PIN), at your convenience. • Instruct your bank to automatically pay certain monthly bills from your account, like your auto loan or your mortgage payment. • Have the bank transfer funds each month from your account to your mutual fund account. • Have your government social security benefits or your tax refund deposited directly into your account.
• Buy groceries, gasoline and other purchases at the point-of sale, using an electronic card instead of paying cash. E-BANKING VARIOUS FORMS OF E-BANKING: INTERNET BANKING: Internet Banking allows you to handle many banking transactions via your personal computer. For example you may use your computer to view your account balance, request transfers between accounts, and pay bills electronically. The system is capable of distinguishing between those customer service requests which are capable of automated realization and those requests which require handling by a customer service representative. The system is connected with the host system of the bank so that the remote customer can access other programmed services of the bank
The microprocessor is under a contact pad on one side of card.. The microprocessor is there on the smart card for security. The host computer and card reader actually "talk" to microprocessor. The microprocessor enforces access to the data on the card. The chips in these cards are capable of many kinds of transactions. For example, a person could make purchases from his/her credit account, debit account or from some other account. The enhanced memory and processing capacity of the smart card is many times that of traditional magnetic-stripe cards and can accommodate various different applications on single card. Smart cards can also used with a smart card reader attachment to a personal computer to authenticate a user. Smart cards are very popular in Europe. In Europe the health insurance and banking industries use smart cards