What are some basic online banking terms?

Online banking terminology

Online banking services offer several types of electronic transactions that the account holder can perform directly.

Online bill pay
The most well known of these is online bill pay, which allows the account holder to pay bills over the internet, effectively transferring funds from the consumer’s account to that of the creditor.

EFT
Electronic Funds Transfer (EFT) is a term few consumers think about, but is an important part of the management of electronic transactions. This is the process by which banks transfer money between accounts and between systems like the bank and its ATMs.

Automatic payment
Automatic payment is a form of online bill pay – for certain creditors, a consumer sets up the account so they can withdraw funds at regular intervals. Consumers use this for things like mortgage payments, rent, or paying off a long-term loan.

Automatic transfer
Automatic transfer is similar to automatic payment, but in this case, the consumers are transferring funds between their own accounts.

Direct deposit
Direct deposit is a form of electronic transaction by which a deposit is automatically made into a consumer’s account – things like wages, benefits, and income tax refunds.