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Internet Banking - Pros And Cons For Your Business

Dec 15, 2007
Many businesses now use internet banking as they deem it to be even safer than the traditional method. Once suppliers' details have been entered in correctly the payment goes directly to their bank account within 3 working days.

Traditional Method

With the traditional method you get to deal with real people but there is a lot that can go wrong. The teller might punch in the wrong amount or you might arrive at the wrong time and end up queuing.

You might run out of cheques or even forget your chequebook at the office when you most need it.

Once you have written a cheque and mailed it you are relying on the post office to deliver your mail on time and to the right address. They often get it wrong.

You need to wait for a statement to find out your account balance unless you are brave and have hours to kill whilst you listen to "your business is very important to us, please hold while we transfer you to the next available operator."

Opening Hours

With the traditional method you are tied down to normal working hours. Online banking is available 7 days a week, 24 hours a day as long as you have access to the internet.

With internet banking you cut out the middle man and transfer the funds directly to your supplier's bank account. It is also possible to access your bank statements day or night without having to wait weeks / months for the banks to deal with your request.

Speed

Bank transfers are often dealt with speedier than traditional banking. Some of my transactions definitely happen quicker through online banking. I can also access all my accounts from one secure site. You can check your bank statements for any period in the past without having to search for a long lost file!

Offers

Some banks now offer special deals for their online business customers only. It is possible to get cheaper loans with lower setup costs, credit cards with lower transaction charges and applying for a loan online is also quicker.

Security

Be very careful with your login details and do not write down your password anywhere.

Always log out once you have finished your business and regularly run anti-spyware software on your computer. Spyware tries to monitor your usage of your computer and collect your personal information and use it against you.

There have been breaches of internet banking in the past but now online banking technology is more sophisticated and secure.

Suitability

Internet banking might not suit you if you like to see who you are dealing with. If you are a "technophobe" & feel insecure about doing large transactions online then it is definitely not right for you.

On the other hand if you hate queuing, despise the time it takes for duplicate statements and hate being bogged down by traditional opening hours then the convenience of online banking can not be beaten.

I use a mixture of online and face to face banking. Some things can only be discussed face to face with my bank manager.
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