The Jamaica Star :: Star Cents :: Electronic banking - making banking easier

by Karen Blair, Features Writer

Gone are the days of waiting in a long line at the bank. Although one may miss the friendly teller, time and money are being saved with the age of electronic banking. This system allows patrons the ease and convenience of making transactions, paying bills and recently, a myriad of other activities that can be done from the comfort of our homes and offices.

Here are a few of the electronic fund transfers that banks have made available to you.

Automated Teller Machines (ATM) 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. Generally, ATMs must tell you they charge a fee and its amount on or at the terminal screen before you complete the transaction. Check the rules of your institution and ATMs you use to find out when or whether a fee is charged.

Direct Deposit lets you authorise specific deposits, such as pay cheques to your account on a regular basis. You also may pre-authorise direct withdrawals so that recurring bills, such as insurance premiums, mortgages, and utility bills, are paid automatically.

Pay-by-Phone systems let you call your financial institution with instructions to pay certain bills or to transfer funds between accounts. You must have an agreement with the institution to make such transfers.

Personal Computer Banking lets you handle many banking transactions via your personal computer. For instance, you may use your computer to view your account balance, request transfers between accounts, and pay bills electronically.

Point-of-Sale Transfers let you pay for purchases with a debit card, which also may be your ATM card. The process is similar to using a credit card, with some important exceptions. While the process is fast and easy, a debit card purchase transfers money - fairly quickly - from your bank account to the store's account. So it's important that you have funds in your account to cover your purchase. This means you need to keep accurate records of the dates and amounts of your debit card purchases and ATM withdrawals in addition to any checks you write. Your liability for unauthorised use, and your rights for error resolution, may differ with a debit card.

Electronic Check Conversion converts a paper cheque into an electronic payment at the point of sale or elsewhere, such as when a company receives your cheque in the mail. In a store, when you give your cheque to a store cashier, the cheque is processed through an electronic system that captures your banking information and the amount of the cheque. Once the cheque is processed, you're asked to sign a receipt authorising the merchant to present the cheque to your bank electronically and deposit the funds into the merchant's account. You get a receipt of the electronic transaction for your records. When your cheque has been processed and returned to you by the merchant, it should be voided or marked by the merchant so that it can't be used again. In the mail-in situation, you should still receive advance notice from a company that expects to process your check electronically.

Although banks have made it conveniently easier to do trading, it is important that you ensure that you exercise caution at all times while using electronic banking services. It is advised that you do not give your PIN number to anyone unless it is extremely necessary. Do not leave your PIN number in your wallet or written on the back of your card. If it gets lost or stolen, it would be too easy for someone to empty your account before you get a chance to report it.

Ensure that all bank websites are secured sites. If you are uncertain, ask the bank to tell you how you can be sure a website is secured. Remember you give sensitive information to pay bills and make transactions.