Electronic banking has many advantages over traditional banking. It allows you to transfer funds between linked accounts, apply for loans and conduct bill payments 24 hours a day, seven days a week, at a reduced transaction cost.

With eBanking, you have greater control of your day-to-day business and personal needs.

Types of eBanking

• Electronic Funds Transfer (EFTPOS) – Allows merchants to accept credit card payments and have funds transferred directly into their account.
  
  
• Internet banking – Allows online access and control of accounts from any personal computer.
  
  
• BPay – Allows bills to be paid and funds to be transferred between different accounts online or over the phone.
  
  

Features of Internet Banking

Internet banking allows you to control most of your banking needs from your home or office computer. Some common Internet banking features and services are:

• View up-to-date banking details, such as account balances and transaction histories for up to 120 days.
  
  
• Transfer funds to linked accounts such as credit cards, business loans and personal loans, and transfer funds to third-party accounts with other banks.
  
  
• Pay bills to organisations that use BPay, such as phone, gas and electricity companies.
  
  
• Import and export transaction details to applications such as Microsoft Money, Quicken and MYOB to ensure your banking details are up to date.
  
  

Getting Started

If your financial institution offers Internet banking, all that is required is a computer, Internet access and a web browser. Simply contact your bank and tell them you want to create an online account.

Choosing the Right Bank

Almost all financial institutions in Australia offer Internet banking, including:

• ANZ: www.anz.com.au
  
  
• Commonwealth Bank (NetBank): www.commbank.com.au/NetBank 
  
  
• National Australia Bank: www.national.com.au
  
  
• Westpac: www.westpac.com.au
  
  
• B&E: www.bassandequitable.com.au 
  
  
• Connect Credit Union: www.connectcreditunion.com.au 
  
  
• Island State Credit Union: www.islandstate.com 
  
  
• BPay: www.bpay.com.au
  
  

eBanking Security

Financial institutions are at the forefront of Internet banking security to ensure customers are confident about submitting credit card and personal details over a network.

With their guidance, a range of standard procedures have been adopted:

• Username and passwords are required to access business accounts and other personal information, restricting access to authorised users. Note: This technique relies on users not disclosing sensitive information to outsiders.
  
  
• Encryption is used for transactions conducted between your computer and the bank, which prevents third parties from viewing your financial details.
  
  
• Automatic log off is used by some banks to disconnect you from an Internet session if the computer is idle for a certain period of time. This prevents other people gaining access to your details if you leave your computer for any reason.
  
  

Fees and Charges

The fees and charges associated with Internet banking are usually lower than traditional banking because you are responsible for your own transactions and there is no need for face-to-face contact. Some fees and charges still exist, however, and these vary from one financial institution to another. There is usually no fee for establishment of an Internet banking account.

Resources

The Australian Securities and Investments Commission has an Electronic Funds Transfer Code (EFT Code) to protect consumers who use electronic banking to transfer funds.

The Code sets out the information you must be given by financial institutions and provides rules to resolve disputes if something goes wrong, especially if someone else has made a transaction on your account without your permission.

For most effective results, some basic rules apply:

1. Read your terms and conditions document carefully.
   
   
2. Always check your bank or credit card statements to ensure there are no unauthorised transactions.
   
   
3. Tell your account institution immediately if your card is lost or stolen or someone else may know your PIN or password.
   
   
4. Never disclose your PIN or code to anyone, including friends or family members.
   
   
5. Make sure your PIN number is hard to figure out – don’t use your birth date.

For a full list of helpful hints, go to the ASIC website at www.asic.gov.au.