I am not sure what "online banking" means. If it means choosing an online bank, I would never do that. I want to be able to go down and see the people taking care of my money. If it means going online through my local bank that is another thing. I check my balance and transactions online.

Most local banks allow online bill paying, that's one criteria I used to choose my bank when I moved to a new state. But you said you already pay your bills online, what else is there? My paycheck is direct deposit right into my account, but if I get a refund check from somebody, I take it to the local branch. I've been paying bills online for something over 7 years. Never had a problem or late fee.

i have used online banking for the last several years. i love the fact that i can reconcile my checkbook everyday. I keep up with it so well that i do not even OPEN my bank statements anymore. every transaction is posted on the site, including any bank fees, so i know what has cleared at least a week before the statement comes in. plus they show pending transactions, so i know what will go thru that night.

my wife can go to the mall and i usually know what she spent before she even gets home since she uses her checkcard exclusively.

if you are paranoid about someone hacking your account, ask the bank not to allow money transfers or online bill pay to originate from your login. we actually have 2 logins, one that allows only transfers from one account to another at the same bank as well as veiwing all transactions, and another that allows everything including bill pay thru the bank. I setup the full access account and then typed in a random set of numbers and letters and promptly and intentionally forgot it. we use ONLY the limited login.

do not store your login info on your machine ANYWHERE. set your browser so that you must enter both the id and password on all secure sites, and you will be as safe as possible. since you already use online bill pay elsewhere, then you have already given someone the opportunity to take money from you. You just have to trust that your bank is as secure as the bill pay service(s) you currently use. and do your part to make sure no one else gets your info.

I'm so sick of my brick and mortar bank that I'm in the process of moving some accounts online. I don't know about pros and cons, just that I'm sick and tired of dealing with this bank and there don't seem to be any others locally that are any better. You should be okay with an online bank providing that you check with the FDIC to make sure they insure that particular institution. Don't take the bank's word for it, check with FDIC.

Right now if I want to access certain savings funds, I have to physically walk into a branch of the bank. That's a pro about online banking- the bank's always open. It also means I won't have to deal with our bank's security features, which include a very weird layout (which dumb me has trouble understanding the flow of) where all the tellers are placed at podiums around the bank and line formation seems arbitrary at best. As well as hating to go through the dead man's chamber at the door. I understand the reasons for their security measures, but it makes me feel insecure going into the bank- like it's a target for robbery every day. That's another pro to going online.

I would think your computer security would be the biggest hurdle. Need to make sure you have adequate protection so no one gets your bank information from online. That's the biggest con for me, but hardly enough to keep me away. A couple years ago someone stole the freshly delivered mail out of the mailbox and got a checking statement and some cleared checks (can you say wash and rewrite checks?), so there's yet another con to brick and mortar banking if you don't have a locking mailbox.

Since many do paperless statements, you have to decide whether that's a pro or con for you. My DH's current job s the first where he hasn't gotten a paper pay statement, at first it bothered me, but now I like having that much less to deal with. Banking will be the same way.

Q

Are we talking WAMU or is there more than one bank with that configuration?

I guess I wasn't clear about what I am asking! I already have an account at my local brick and mortar bank. I just want to be able to access it online as davidandkasie does, to be able to see when things are cleared, etc. I know a lot of people do it already, but was just wondering if there were any *cons* to the practice! Thanks to everyone who offered an opinion!! :>)

If some hacker has dropped some spyware into your machine, it'll check keystrokes and when you type in your PIN ... that info will be sent to the hacker.

Few get stung - but when one does, it's a hassle.

I have an old computer and obsolete, so inadequate, virus protection, and no firewall.

Which means I don't do online banking. Don't pay bills online, either.

Some hackers around here recently accessed a few people's investment accounts and had those accounts sell their good stocks and buy some junk. Quite a fuss over that.

Good wishes for a good result, whatever you decide.

As they say - messages over the internet are pretty well public property.

ole joyful

I have online banking with my bank which is a very large one with branches in many states. I can check the balances, transfer funds from checking to saving, the credit cards, and feel very secure. I do watch my suspect mail and do not open anything that seems to come from the bank, in fact have called them about it. I can print the statements, etc. Very convient.

I switched to paying bills online almost exclusively about 1-1/2 years ago. The only things I pay via hand-written check are those done on-the-spot such as car license, car inspection, household repairs when payment is wanted immediately, etc. Oh, and my grandmother's Medicare drug plan since they need the payment coupon with her account information. The only trouble I've had was apparently a glitch perpetrated by the post orifice -- a payment sent non-electronically (printed check, postal mailed to the payee) got misdirected to the wrong payee, *supposedly* due to envelopes sticking together.

Oh, one other glitch I recall: Payment application for a magazine subscription renewal got *SERIOUSLY* delayed because there was no remittance coupon included .... thus the hand-written payment for the abovementioned drug plan.

PinkCarnation, if you set up online access to view account information, but online bill payment and transfers is not activated, then perhaps that'd ease any fear of hackers.

One should always use STRONG passwords for online financial access. NO real words. Use the LONGEST password allowed, a nonsensical mix of letters, numbers, uppper/lower case, and include "special" characters when allowed. Use DIFFERENT usernames/passwords for EACH financial service you may have.

I have been doing online banking for about 8 years. My husband and I have a joint account for paying small household bills online. The only problem I ever had was entirely due to user error: I had switched cable companies and forgot to delete the old account number for bill paying, and I clicked on the old instead of the new number. Fortunately, the cable company refunded my money when I explained what had happened. I can also pay my income tax through the bank's website.

Some banks in Canada still charge extra for Internet services.

This is something that really intrigues me but I'm too afraid of MY own ability to follow proper protocol to keep my accounts safe and isolated. I have a very great fear of MY inability to pick up the "bread crumb trail" and thereby provide a "welcome mat" to would be hackers.

I see the great convenience such accounts could provide. But I'm afraid of taking such a step. I understand what I do every month; I'm afraid of the potentially catastrophic mistakes I might commit... out of PRACTICAL ignorance of the computer world, not because I don't know how to manage my finances.

I do all my banking online - all my bank accounts accesssible online and I use the banks electronic bill paying function for all my regular bills. I also download all my transactions into Quicken where I keep my check register. I reconcile my account to the penny every month and I'm prone to mathematical errors so this has saved me many hours of time - I can reconcile in minutes vs. hours that it sometimes took me in the past.

All that said, I'm very careful about backing up my data, running antivirus and antispyware regularly, changing passwords, and being smart about phishing scams. The big pro to me is that you can see all your finances realtime, anytime, anywhere. It also saves me time since I use the download to Quicken. The only con I think is that you do have to be careful about security measures to avoid having someone getting access to your account. It's not onerous but you have to pay attention to technology scams and how they continue to evolve - and how to prevent them. On the other hand you also have to be careful about what happens with the mail in your mailbox to avoid identity theft.

I've been on-line banking for about six months. The two big pros are-1. the postage I save and 2. No late fees. I set up some bills as "recurring"-that is, pay the exact same amount on the same day each month, once a month (mortgage,cable TV, oil company contract,and a credit card I'm trying to pay off). I still write some checks, for things I think are "unique" (pay once) like charitable contributions and magazine subscriptions. The cons-none yet. I have not yet encountered any "disputed" bills where I need a copy of the cancelled check or similar proof of payment. That might be the only pitfall. Oh, and I have anti-virus and firewall and my computer,so I'm not overly concerned about hacking.

Here's a 'pro' for you. Our bank no longer sends either cancelled checks or even images of cancelled checks. Last week I looged on and happened to click on a >$750 check that had cleared.

It wasn't our check. Wasn't even our state.

Apparently the check had been damaged which caused the machine to read the acct number wrong.

If i didn't have online access, i might not have discovered the error; certainly it would have taken longer--the check hasn't appeared on our statement yet.

So, I'm all in favor of online banking.

Nine years with online banking experience. The ONE guy that claimed he never got his check and wanted cash in advance for his services (last summer) and didn't deliver will be in small claims court soon.

Online banking rocks! Also, since I can type better than I can write anymore, I love it. Hands are getting old and feeble for writing, but I can still type 70 wpm.

I started online banking 10 years ago and never had a problem. I don't consider it any less safe than in-person banking, which also relies on computers and the integity of the tech staff that you never see. If you're paranoid about keystroke loggers, just go to Start, All Programs, Accessories, Accessibility, On-screen Keyboard. The On-screen Keyboard lets you type by using your mouse; since no keystrokes are involved, keystroke loggers are unable to capture your entries.

Even IF someone got your log-in information and blocked you from seeing your account by changing your password and attempted to send money to themselves I doubt they would get too far.
it takes my bank about 2 days to send money out if I log on and tell them "send 5 bucks to so and so"

By then I would have logged on ( I log in everyday) seen I couldn't get on my account and closed it down. No money would have left the account and if it did, it is insured by the bank.

Now sure, they have my account number, but everyone I give a real check to has that information also. Your account number is on the check! Now, if someone is browsing my online account what would they be able to do? It doesn't have my SS# so they can't get that. I don't even think my address is listed. Now if they took my account number to my bank and tried to withdraw money this wouldn't work either. You need an ID to withdraw money. The bank would see that it wasn't me and not give out the money AND anyone who has seen a check could try this.

So I actually feel that doing it online is better as I am not giving out checks left and right. This prevents my checks from falling into the wrong hands and maybe being copied or changed.

What do we hear about happening most often 1) credit card fraud 2) identity theft. Stealing money from someone's bank account (without identity theft first) is pretty rare. In fact I have never heard of it. I am sure it must happen sometimes though.

-renee

I've never been asked to show ID before getting cash from my bank.

Once I went for a walk downtown. I didn't take a purse because I didn't intend to buy anything. I came across a sale that I really wanted to take advantage of and the bank gave me cash with no ID whatsoever.

If my bank, apart from the local branch where they know me personally, ever gave me cash without asking for ID, I would switch my account immediately. The president and the branch manager where I got the money would get a letter telling them why. I would not trust them with my money.

Yes, I agree with Sharon! with how EASY it is to get someone's information today it is so important to make sure that the money is being given to the correct person (this is good for the bank and the individual!)

Our bank is a small local credit union. I HATE those big banks.

Many times we have to show our bank card also.

Online banking for 7 years, no problem or late fees

I've used online banking for many years and love it--it's a huge timesaver. I log on once a day and feel confident that I know what's current with my accounts. No more balancing the checkbook, no more paper bank statements to deal with. Many companies (mortgage, cell phone, utilities, credit cards, insurance, etc.) provide electronic bills which you can review and pay online, or set up for automatic payment, without having to ever see a paper bill again. Customer service with my bank has been excellent and responsive.

Online banking feels more secure to me that the old style because I can so easily track my accounts and catch anything that looks out of line (nothing ever has been). The log-in procedure (I'm with BofA) has several levels of security and my home computer also is protected by firewalls.

Online banking is great for the traveler because you can keep track of your accounts and pay bills while you're on the road. Also, you can link your account to other financial institutions (I link to ING Direct and Vanguard), which greatly simplifies the money transfer process.

There are so many plusses and conveniences I would never think of going back to the old way of banking.

I've been using online banking for nearly 10 years!

I am also a web developer... taken a ton of courses in online security and developed some pretty secure systems myself.

I actually bank with an exclusivly online bank. No brick and morter branches. I love it. Can check everything, anytime, anywhere. Can set up and pay my bills and can invest in my RRSP.

With our bank, you have to actually select who you are paying abill too (so someone could not log in as me and pay a 'bill' to their account) and any tranfers between banks (say to my husbands account) need to be set up ahead of time via a paper form.

I think you are much more likley to have financial issues with a credit card # being taken off a receipt at a restauant then via your online banking.

Most cases of identity theft are committed by relatives or people you know well,such as roomates,who would have addess to personal information about you,such as your middle name,parents names,etc. Banks, the government,and big businesses have all sorts of tools to prevent fraud. Be more worried about leaving papers around your home or office than about your keystrokes. I know personally of one case where a man had his military discharge paper stolen by his own brother,who used it to obtain credit cards and then ran up large debts. Another where an ex-wife used her minor childrens Social Security numbers to get credit. She charged $400 worth of goods and ended up owing about $2000 in penalties and interest. She went to jail for fraud.

"I've never been asked to show ID before getting cash from my bank."

I have a note on my checking account file to ask for my ID and a password if I'm withdrawing a large amount of money. I must be one of the few who have done this because each time I go in to my bank the teller has to ask a supervisor what code 3 and 27 mean! I pick up my statements at my bank ever since they mailed an unsealed statement to my p.o. box.

I still use checks, but have my P.O. box address on them and just my first and last initials. My signature is illegible. If someone washes a check they wouldn't know what my full name is unless they stole the check from the company they work for. I also don't use a debit card. I prefer a card that requires a pin number. If I lose my ATM card, one has to at least know that much in order to use it.

I have a Citibank credit card. When I order online, I don't use my regular card, I create a virtual credit card number for a one time use. I did this after an employee with my internet provider used my credit card number to purchase a cell phone and direct TV. I had used a brand new credit card to sign up for autopay for my monthly service. I never used it for anything else. The executive I contacted denied it could have originated with his company so I now use a money order or a virtual credit card for online services. Virtual credit card numbers are great. Here is a link about them and some of the other things mentioned.

Perishable credit card numbers take the fear out of Web shopping
http://www.bankrate.com/brm/news/cc/20021011a.asp

prepaid card accounts
http://www.post-gazette.com/pg/06162/696746-243.stm

Keep thieves out of your bank account
http://articles.moneycentral.msn.com/Banking/FinancialPrivacy/KeepThievesOutOfYourBankAccount.aspx?page=1

Banking industry needs to tackle account hijacking
http://www.bankrate.com/dls/news/bank/20050126a3.asp

3 Reasons Not to Use Online Bank Accounts
http://banking.about.com/od/savings/a/3onlinebankacct.htm

dreamgarden,

I don't really understand this statement you made:
I also don't use a debit card. I prefer a card that requires a pin number. If I lose my ATM card, one has to at least know that much in order to use it.

In Canada, a debit card and an ATM card is the same thing (ie. you can use it at a bank machine or in a store and a PIN number is always required).
Is it different in the States? If so, what are the differences?
Just curious.

no, it's the same here at least I have never heard of a debit card that wasn't an ATM card and they all require a PIN number, but maybe I am missing something.

greg_h
This might explain why it is different in Canada.

"In countries that don't have debit cards proper, such as Canada, an ATM card is also known as a "debit card"."
http://www.answers.com/topic/atm-card

I prefer to use a simple ATM card (versus a ATM/Debit card) for the following reasons. A "simple" ATM always requires the use a 4 digit pin number in person. If I lose or have a debit card stolen, I have less options for dispute resolution. Different banks have different policies concerning disputes for credit cards vs ATM/Debit

I try to pay cash or use a credit card for most purchases. I don't want too many entities having direct contact with my bank account. I have a set limit on how much can be withdrawn from my checking account each day. If someone steals my pin they won't get very much because I don't keep a lot of money in this account to begin with. When I have bills to pay, I go to the bank in person and transfer funds from my savings to my checking. I do not have (or want) overdraft protection. That is just more money for thieves to steal.

If I travel, I take two credit cards. My spouse has their own (separate account) ATM card and credit cards in case there is a snag. Every now and then I lay my cards on a printer and copy these (with the number to call) just in case my bag is lost/stolen. I keep a copy at home in a locked file cabinet and take one with me. I block out part of the information on the copy I carry with me (in a separate place), so it won't be helpful if IT is stolen. Do most people know the numbers of who to call if this is lost and they are away from home?

I have an arrangement with my credit card providers that I will call them before going on vacation or making any high ticket purchases. If it seems like there is unusual activity on the card, they will call my cell phone to confirm it is me. They have a password on file that is NOT my mother's maiden name.

When I dine out, if I use a credit card I always leave a cash tip. If you don't have to resubmit the card number to include the tip, then the merchant doesn't need to have your cc number on file. They have already been paid. I have noticed an interesting thing with merchant/customer copies of receipts. Even thought Visa/MC has said merchants should not have the whole number after the transaction has gone through, many merchants have not changed their machines to reflect this. The machine prints the entire number on THEIR copy, but the customer copy only has the last 4 digits. Watch out for this when using a credit card. When signing receipts, I always scratch out all but the last 4 digits of my number on the MERCHANT copy.

More links you might find of interest

Worldwide information
http://www.answers.com/topic/debit-card

ATM Card vs. Check Card
http://money.howstuffworks.com/atm1.htm

ATM Debit Cards
http://www.pirg.org/consumer/banks/debit/fact.htm

Crooks Who Use Your ATM Card As A Passport To Your Account
http://www.kevincoffee.com/money/atm_debit_card_fraud_information.htm

Your liability under federal law for unauthorized use of your ATM or debit card or Credit cards.
http://www.ftc.gov/bcp/conline/pubs/credit/atmcard.htm

Debit card thieves get around PIN obstacle
Wave of ATM fraud indicates criminals have upped the ante
http://www.msnbc.msn.com/id/11731365/

Nov 24, 2006 -- Servers skimming your credit card?
http://clarkhoward.com/shownotes/category/6/23/178/

So in some places in the States, debit cards and ATM cards are the same thing (like in Canada), whereas in some other places in the States debit cards and check cards are the same thing?

You crazy Americans!! :)
Just kidding, but it seems kind of confusing.

I have banked online for about 8-10 years now. Never had a problem. The main "pro" is convenience. For example, I keep most of my money in a high-interest savings account at ING, then transfer it to my checking at my local bank as needed. The drawback to this is that it can take several days for the transfer to go through, so the money is not instantly available. The biggest "con" is exactly that - con artists. However, fraud existed long before computers and the Internet. Now, it's more anonymous and harder to find the con artists. Always check with the bank to find out their policies on fraud liability for online banking. Ditto for a debit card. Once online, check the activity on your account several times a week. Report any fraud immediately by phoning the bank, and follow up in writing.

greg_h:

In the US, "ATM Cards" can only be used at ATM's (and a very limited number of retailers.)

Debit Cards labeled Mastercard or Visa function as ATM cards, plus can be used at retailers that accept MC and Visa. I would guess that the vast majority of cards today are Debit Cards.

Debit Cards labeled Mastercard or Visa function as ATM cards, plus can be used at retailers that accept MC and Visa.
So these debit cards look exactly like a credit card, don't require a PIN, and you sign the receipt (like a credit card). From my understanding, these are the same as check(cheque) cards. Right?

However, devorah says that his/her debit card is like the ones in Canada. Here, practically everywhere where credit cards are accepted, debit cards are accepted too. You swipe your card, punch in your PIN, and the money is transfered to the stores account. These debit cards are not associated with MasterCard or Visa. They are your bank's card.

So it seems to be that different regions of the States have use the term 'Debit Card' differently. Or are some Americans mistakenly using the term debit card, when they mean ATM card?

My bank debit card (which I assume is also an ATM card, but I never use ATM machines so I can't say for sure) apparently can also function as a pseudo credit card. In the majority of instances where I run it through a card reader myself (such as at a self-serve gasoline pump or in Wal-Mart or the local grocery), I have to enter a PIN and don't sign anything. However, in a few instances where there is no customer-accessible card reader and I hand the SAME card to the sales clerk to be scanned on his register, I don't have to enter the PIN and I get a receipt to be signed and handed back to the clerk. The transaction is still deducted directly from my checking account.

I'd say that any card which pulls the funds for the transaction directly from a bank account is a Debit Card (or a Check Card).

A Credit Card would be one that applies the funds to a credit account, which is then paid at a later time in response to a statement sent by the carrying bank.

ATM or Debit. One has limited uses, the other can be used practically anywhere (with or without a PIN). I prefer the first one, but thats just me.

pinkcarnation is holding off on online banking and I can relate. Until the government can fine tune the security of online accounts to my satisfaction, I prefer less avenues for thieves to drain my account(s).

greg_h
About "crazy Americans". How would you classify fellow native Jim Carrey?! ;)
In all seriousness, I think Canada is a great country and am glad to have it for a neighbor. Have a good day.

greg_h:
That's correct. They look like a credit card, with the Mastercard or Visa logo on the lower right corner.
When using at an ATM, you MUST use a PIN#. When using at a retailer, generally you can choose between a signature transaction or a PIN# transaction. In the US, there was a huge dispute over this. Fees to the retailer are much higher for signature transactions, which are processed through the Mastercard/Visa network, than for PIN# transactions, which are processed by smaller, regional systems. At Walmart, for example, the payment pad automatically prompted you for the PIN# if you swiped a debit card. It did not give you the option to do a signature transaction. In the examples I have seen cited, service fees to the retailer on a $100 transaction are about $3 for a signature transaction and 35 cents for a PIN# transaction.
Personally, I have ceased using my debit card, except at ATM's. If the number is boosted, your account could be cleaned out before you realize it. Although you would likely receive reimbursement under fraud protection, you are still without the money until then. With a credit card, fraud still creates a hassle, but at least your bank account is not cleaned out.

My debit card has a daily limit, so if it was stolen and the person somehow knew my PIN, they wouldn't be able to clean out my account. Only up to $1000, I believe. But I could lower or raise that limit at the bank, if I chose too.

The daily limit is a good feature. Mine has a $500 daily limit for cash withdrawals with a PIN, but NO limit for Visa debit transactions. It's not the PIN transactions that are a big concern, but rather, the "signature" transactions, and online transactions that do not ask for the CID#, the cardholder's name, or verify when the shipping address differs from cardholder's address. With a credit card, you suffer no loss while the fraud is being resolved. Of course, Canadian and US regulations may differ.

Since we are on the subject of debit cards...
FYI. If this is merely a rumour then please disregard.

Monex Canada Is A SCAM!
A must read for small business in Canada
www.mytruston.com/blog/identity_theft/another_database_with_your_information_k.html

Dreamgarden,

The website you linked to was an article that had nothing to do with Monex.
In the comments section, someone posted a link to their own site about Monex, but it seems like a very amateurish website with spelling mistakes and a bad layout. I'm not saying it isn't true. I'm just saying that it doesn't seem like a credible source.

Just my 2 cents.
Greg