Elements of EB

Elements of Electronic-Banking

Electronic Data Interchange (EDI):

 Electronic Data Interchange (EDI) refers to the structured transmission of data between organizations by electronic means
 It is used to transfer electronic documents from one computer system to another, i.e. from one trading partner to another trading partner

Automated Teller Machine (ATM)

 ATM is a device that allows customers who have an ATM Card to perform routine banking transactions without interacting with the human teller
 The ATM cardholder can do most of the banking transactions like withdrawals, deposits of cash and cheque, balance enquiry, etc.
 The origin of ATMs can be traced back to June 1967 when Barclays' Bank installed the first cash dispenser in the UK

POS (Point of Sales)

 A point-of-sale (PoS) terminal is an electronic device that is used for verifying and processing card transactions
 Point-of-Sale Transfers let one pay for purchases with a debit card
 The process is similar to using a credit card, with some important exceptions
 The process is fast and easy, a debit card purchase transfers money - fairly quickly - from one’s bank account to the store's account

Plastic Card Currency

 Plastic cards, also known as plastic currency, involving electronic devices in their functioning is gaining popular as a convenient mode of payment
 By using these plastic cards, financial exchanges take place on line between buyers and sellers
 There are different types of cards which include Credit Cards, Debit Cards, ATM Cards and Smart Cards

Credit Card

 Credit Card can be called as an equivalent of a loan sanctioned by the bank to its customers
 Credit card facilitates and makes it possible to "Use First and Pay Later"
 Before issuing the card, the bank likes to know and be sure of the identification, age, level and source of income and repayment capacity
 This card facilitates the cardholder to purchase goods and services from the merchant establishments and shops through the collaborating credit card companies like VISA, MasterCard, Maestro, and Cirrus.
 Interest is charged by the bank, on a monthly basis, for the credit provided through the card. Service charges are collected from the cardholder/merchant for the transaction and processing.

Debit Card

 A Debit Card allows online electronic payment from savings or current accounts of the cardholder for purchases or cash withdrawals
 This card is a deposit access product where cardholder uses his own money in his bank account through the debit card on the principle of "Pay First and Use Later".
 Debit card can be used to make purchase at retail shops and merchant establishments in the same way as the credit card is used.
 But in order to use the debit card, the cardholder must have sufficient balance in his/her account. Debit card contains the symbol or hologram of the collaborating company such as VISA, MasterCard, Maestro and Cirrus, etc.

E-Payments

Payment is generally understood as a transfer of fund from one person (payee). In E-Payments, funds are transferred through electronic mode. These are:

S.W.I.F.T

 The society for Worldwide Inter-Bank Financial Telecommunication (S.W.I.F.T.) provides reliable, secure and expeditious telecommunications facilities for exchange of financial messages across the world
 The banks are mostly the member of this International Financial Messages Communication Network. The banks can carry out foreign exchange business, safely, using this network.