Online banking or Internet banking : How the system works

Online banking or Internet banking provides some extra advantages. How the technology works behind Online banking and who and what should better be avoided ? Here is a brief article on Online banking like our previously published article on ATM.

 

Important : Some technical terminologies will be used in this article, if you are not sure about it, please search on our website with the term using the searchbox on top right of this webpage.

 

How Online banking or Internet banking works ?

 

Electronic banking or online banking or e-banking is the execution of banking transactions via a kind of other form of Internet connection with the help of computers, smart phones and other electronic devices. Electronic banking is an umbrella term that covers Online banking. In case of Online banking, usually no special terminal (like payment terminal those accept credit cards) like instrument is needed. Online banking refers to the direct access to the bank’s computer via Internet via remote data transmission.

Browser-based Internet banking on the website of the bank are usually done through SSL secured domains to protect the privacy. PIN / TAN are usually used to verify the ownership in addition to normal password. Dedicated softwares are also available for Online banking.

Today everyone knows with Online banking, we can transfer money, pay bills or stop a cheque’s processing.

 

Who and what should be avoided for Online banking

 

If you really not much used with other normal usages of a computer and Internet accounts which has no relationship with Online banking but has some resemblance (like social site accounts) its probably better to avoid Online banking as its a matter of money.

 

Make sure the computer your are using for Online banking is preferably yours personal or limited to your kith and keens who normally has the access to your Banking Account in real life. The Computer should be free from Virus, Malwares and Key Loggers and a relatively safer operating system like a stable Linux distribution is preferable for Online banking as they are less liable to get Virus infected. Anti Virus, Anti Malware Softwares should be up to date and be very cautious about performing Online banking using a smart phone as it can be lost easily than a computer.