Internet banking is one of the easiest ways to conduct banking transactions. Several banking transactions can be conducted using a personal computer hooked up to the Internet. All one needs is a bank account that is activated for transactions on the Internet. All banks offer their customers an internet banking facility.
All transactions are performed over the Internet using a bank's secure website. The main reason why internet banking is very popular is that it enables banking even during non-banking hours.
Most of the banks' websites use web browsers as the interface to conduct transactions. These interfaces are made very user friendly so that customers do not have any trouble navigating through the transactions. Transactions like electronic bill payment, downloading of bank statements, online money transfers, and the like are the usual transactions conducted using an Internet banking facility.
For the protection of the customers' interests, banks use certain measures. Password authentication, encryption, etc., are some of these measures. Banks have to keep on updating the technology used for this purpose, as hackers keep on getting more and more skillful. Banks generally advise their customers to keep on changing passwords at frequent intervals. This lessens the chances of hackers being able to cash in on any passwords that they are able to lay their hands on.
Other protective measures taken by banks are the use of unique login names, transaction numbers, use of two passwords, security token devices capable of generating single use passwords, and digital certificates.
Generally, banks do not charge anything extra for internet banking services. Every time a transaction is made, the account details are updated automatically.
Internet banking is often perceived to be risky, as one may hear of many frauds being perpetuated. Certain automated checks are in place with all Internet banking websites. Multiple attempts to use an incorrect password automatically render the account inactive. The customer then has to go through a detailed procedure to get his Internet banking account reactivated. However, banks keep on updating their technological back ups to ensure that their customers feel safe banking with them.