Internet Banking – How Does It Work?

Internet banking works mostly like traditional banking. The basic difference is that all that you do with your bank account is through a computer – whether you’re accessing your account and information, making payments or reconciling statements. Instead of going to the bank’s nearest branch, you can do all this with a click on your mouse.

Online banking is rapidly gaining popularity, as more and more customers recognize its advantages. Most banks charge fewer fees if you use their online services. You could even avoid receiving paper statements if you like, and conduct 95% of your business online.

Internet Banking for Online Purchases

In a typical set up, the procedures for doing online purchases would go something like this:

• Make the purchase you want.
• Select the payment option using internet banking.
• You have to enter your User ID and Login Password.
• Then select the Bank using which we desire to pay.
• Your transaction password should be entered.
• Your selected account will be debited by the purchase amount.

The service provider will deliver the goods/services bought in due course as per their delivery norms.

Payment of Bills through Internet Banking

A typical procedure for bill payments would be like this:

1. If you are registered for Personal Internet Banking all you have to do is to simply log on and select “Pay Bills.”
2. From the menu choose ‘Add a Payee’ to create your ‘payee’ list i.e. the companies or the people you wish to pay. Enter the name, address and account number for each (keep your current bills handy for this purpose. Internet Banking will store the new payee information so we will only have to enter it once.
3. Log on to Internet Banking when you want to pay a bill, select the appropriate ‘payee’ from our list, then enter the amount and the date we want the payment to be processed.
4. That is all what you have to do. The bill payment will be processed on the date you selected.

Thus, if your bank provides online banking, opt for it. You will certainly find internet banking easier than visiting the bank personally.