For many, Internet banking is the easiest way to send and receive money. But there are some people who feel that banking on the Internet has a number of disadvantages. In this article, we will explore the pros and cons of Internet banking and see if they are real or just scare tactics.
One of the main advantages of Internet banking is the convenience it provides. You can set up an account and begin using it without even leaving your home. You can shop for goods from the comfort of your own home. Plus you don’t have to wait in long lines at the bank.
Another great advantage of online banking is the ability to access your money anytime, anywhere. You can pay bills or make purchases in person or online. Of course, there are other disadvantages as well. Let’s look at them one by one.
The first disadvantage is that you cannot access your money using a debit card. In other words, you can’t make payments with your debit card. You also cannot transfer your money to another bank.
Second, the fees that are charged by banks when you do an Internet banking transaction can be high. In addition, the rates can change frequently and abruptly. Even though there are ways to lower your fees, there is no guarantee that you will be able to get good rates when you are shopping for loans.
Third, when you are a business owner, you may have to pay extra fees when you use Internet banking. Some banks may consider you as the customer instead of the business owner. As a result, you may have to pay extra fees for transactions or other services.
Fourth, when you do an Internet banking transaction, you may have to have direct deposit. Direct deposit can be very expensive and sometimes your money doesn’t show up immediately. Plus, you have to use your ATM to withdraw your money.
Fifth, in most cases, you cannot decide when and how you want to spend your money. When you use your debit card to make a purchase, you can be sure that the money will be available when you need it. On the other hand, if you do an Internet banking transaction, you will never know when you will need to use your funds.
Sixth, there are only a few banks that allow you to do an Internet banking transaction. If you want to use Internet banking at any other bank, you will have to wait until the other bank is ready to accept the transaction. In most cases, only big banks like Citibank, Wells Fargo, Bank of America, and JPMorgan Chase offer this service.
Seventh, you may need to pay a fee to do a banking transaction with other banks. This fee can be very high. Furthermore, the fees can change frequently and abruptly. In some cases, these fees are completely arbitrary and their changes are not reported to the public.
Eighth Internet banking can be dangerous. Even if your personal information is safe with a trustworthy company, thieves can steal your data by breaking into your account. Plus, you may lose control of your funds when you send money to someone you do not know personally.
So, what are the real disadvantages of Internet banking? Are there really good reasons to get an Internet banking account? These are just a few of the disadvantages of Internet banking.