The Increasing Benefits, Identity Theft Concerns, and Responsibilities of Electronic Banking

Electronic banking is continuing to flourish in today's society, as most banks offer some type of access through electronic or online banking. Most electronic banking services are designed to add convenience and ease for the banking consumer. However, they also have given rise to privacy and identity theft concerns. Hence, with more influence of electronic banking access and online transactions, the consumer must take a more active role in protecting their own privacy.

Below is a list of the 4 primary types of electronic banking and how they benefit the consumer.

1. Online Banking - When a consumer uses online banking they have the capability to keep track of their accounts more easily. In most cases they are able to actually see what is happening to their account in real-time. There has been some concerns over online electronic banking, however, due to privacy of their information and the increase in identity theft.

However, the banking industry has always been at front of many information privacy and protection initiatives. The responsibilities are therefore increasing to the actual consumer. Hence, it is necessary for the consumers follow general guidelines to ensure the safety of their information and accounts. This includes protecting there login credentials (e.g., logon id or password). Consumers must also periodically change the banking password often - suing difficult to guess passwords using (i.e., lengthy, but easy to remember, letters, numbers and special characters). The term pass-phrase is becoming more popular where you use the first letter of each word of a favorite phrase adding a capital letter and a special character in the combination.

2. Online Transfers - Many banks with online banking benefits may also offer online transfers. This can be very convenient. It allows customers to transfer money between their accounts or across banking boundaries (with savings or money market accounts) without having to go to the bank or call a branch. Using this service a person can look at their accounts through their online banking website, assess notice that their checking account is getting low, and transfer money from their savings account to cover any outstanding checks. With money market or investment accounts it allows for easy transfer of funds into an IRA account also.

3. Debit Cards - Debit cards are probably the most popular form of electronic banking. A debt card allows the consumer to pay for purchases either using their pin number or by using their debit card as a credit card (since most have a credit card logo) instead of writing a check. This service is also convenient since there is less time delay than with check writing. Also, it can be a way for the consumer to control debt risks of an actual credit card. Keeping track of debit card transactions will be shown on their online banking screen almost immediately - allowing for up to date and current financial condition.

4. Online Bill Pay - Finally, there is online bill. This feature is considered a complimentary product to online banking. It offers consumers the opportunity to pay their bills without having to actually use or pay for a stamp and envelope. The consumer may add the names and addresses of any liability accounts and are then able to pay their bills at any time with great ease. Some consumers have wondered about the safety of this type of electronic banking as well. However, statistics have shown that it is safer than paying bills through the mail or even over the telephone. The reason for this is due decrease in any intercept capability in either of the latter to methods. Often no physical paper needs to be transmitted with the consumer's account or personal information. Additionally, if the consumer decided to initiate the electronic bill pay at the bill payer's site, they themselves add anther level of comfort if this is what is desired.

It is obvious with increasingly busy schedules of today's consumers that electronic banking is a welcomed convenience. It is also obvious that the consumer now shares responsibility for the safety of his or her own privacy. There are services that specialize in identity protection. Some do what you as a consumer can do for yourself. You can monitor your credit reports and shred address labels before throwing out mail, contacting junk mail companies for address removal, etc. to develop other privacy protection habits. Honest and reliable services will reveal that and not act as though they do what you cannot.

However, since identity theft protection companies do what most people may never take the time to so, they are still worth investigating. Be sure to see what they provide, evaluate their cost, and see what type of guarantee they give you. Gain a sense of their honesty; this will contribute to your own piece of mind. If you are considering such a service,be sure to evaluate what type of track record they have or if they provide a guarantee. Keep in mind how much exposure you may have and the protection you feel you need, then make the best choice of the one that can and will do what they claim.

Deb Atkins writes articles to support life balance (http://www.avenueelite.com) - including financial balance, early debt elimination, and savings. Get her free Step-by-Step Guide to Reduce Your Debt with free excel budget spreadsheet template at http://bullionseed.com

Reprint Rights: You are granted permission to reprint this article as long as you leave all of the site links active, do not edit the article in any way, and give the author name credit.

My Elec Store
360 Store
Simon Camera store