Electronic banking is the use of computers and telecommunications to enable banking transactions to be done by telephone and computer rather than human interaction

1. ELECTRONIC
FUND TRANSFER
(EFT)-
THE BASIC

2. 6.1.1 ELECTRONIC BANKING
Electronic banking, is the use of computers
and telecommunications to enable banking
transactions to be done by telephone or
computer rather than human interaction.
E-Banking services are delivered to
customers through the internet and web
using Hypertext Mark-up Language (HTML)

3. HTML - mark up the content of a site
- Is used for creating web pages and
web application
- It allows users to create and structure
sections, headings, links, paragraphs,
and more on a website using various
tags and elements.

4. One of the main concerns of e-
banking is security. Without great
confidence in Security, customers are
unwilling to use a public network, such
as the internet, to view their financial
information online and conduct
financial transactions.

5. Some of the security threats include of
individuals’ privacy and theft of
confidential information. Banks with e-
banking service offer several methods
to ensure a high level of security:
•Identification and authentication
•Encryption, and
•Firewalls

6. 1. Identification and authentication of an
online bank takes the form of a knows
Uniform Resources Locator (URL), while a
customer is generally identified by his or
her login ID and password to ensure only
authenticated customers can access to
their accounts.

7. •In the digital world, authentication is
verifying a person’s identity or an
electronic device.
•Authentication becomes necessary
because it increases the security of
consumer’s data. No one can enter the
website and access your data without
verifying or authenticating oneself.

8. 2. Encryption, messages between customers
and online banks are all encrypted so that a
hacker cannot view the message even if the
message is intercepted over the internet.
•Encryption is the method by which
information is converted into secret code
that hide the information’s true meaning.
•Encryption is an important way of individuals
and companies to protect sensitive
information from hacking.

9. 3. Firewalls, Banks have built firewalls which
are software or hardware barriers between the
corporate network and the external internet, to
protect the server’s database known outside
intruders.
•It monitors all incoming and outgoing traffic
based on the rules set defined in its table.
•To prevent hackers from gaining
unauthorized access to your data, emails,

10. Electronic Banking also known as Electronic Fund
Transfer (EFT), uses computer and electronic
technology in place of checks and other paper
transactions. EFTs is initiated through devices
like cards or codes that let us, or those we
authorize, access the account. Many financial
institutions use ATM or debit cards and Personal
Identification Numbers (PINs) for this purpose.
Some use other types of debit cards that require
the signature or a scan.

11. SOME COMMON EFT SERVICES
1. Pay-by-Phone System
•Let we call the financial institution with
instructions to pay certain bills or to
transfer funds between accounts. We must
have an agreement with the institution to
make these transfer.

12. 2. Personal Computer Banking
•Let we handle many banking transactions using
the personal computer. For example, we may
use the computer to request transfers between
accounts and pay bills electronically.
3. Debit Card Purchase or Payment transactions
•Let we make purchases or payments with debit
card, which also may be the ATM card.
Transactions can take place in-person, online
or by phone.

13. Be careful with online and telephone
transactions that may involve, the use of the
bank account information. However, because
online and electronic debits do not occur face-
to-face. Be cautious about sharing the bank
account information.

14. To understand the rights and responsibilities for
the EFTs, read the documents we get from the
institution which may contain information about
EFTs that issued the “access device” the card,
code or other way we access the account to
transfer money electronically.

15. We also get two more types of information
for most transactions:
1. Terminal Receipts
• You will get a receipt at the time you make any
transaction involving your account using an ATM, POS
terminal, or Debit Card transaction with a participating
merchant.
• The receipt must show the amount and date of the
transfer, and its type, like from saving to checking. It
also must show a number or code that identifies the
account, and list the terminal location and other

16. 2. Periodic Statement
• Transfers and withdrawals made through any debit
card transactions, audio response transactions,
preauthorized EFTs, online/ Pc transactions, mobile
access device transactions or bill payment you make
will be recorded on your periodic statement.
• You will receive a statement monthly unless there is
no transaction in a particular month. In any case, you
will receive a statement at least quarterly.

17. 6.1.2 ERRORS
• The financial institution must be notified within 60
days of the date a periodic statement was sent that
contained a problem or error.
• In the event of an error, notifying the financial
institution via certified letter is the best way to protect
oneself. So that we can demonstrate that the
institutions received the letter, request a return
receipt. Copy the letter and keep it for your records.

18. • Under the federal law, the institution has no obligation
to conduct an investigation if we miss the 60-day
deadline.
• After we notify the financial institution of a statement
error, it has 10 business days to investigate.
• The institution must notify us of the outcomes of its
investigation within three business days of its
completion, and it must correct an error within one
business day of discovering it.

19. • An institution is usually allowed to take up to 45 days
to complete the investigation, but only if the money in
dispute is returned to the account and we are notified
promptly of the credit.
• If no errors are found at the conclusion of the
investigation, the institution may return the funds if it
provides us with a written explanation.

20. 6.1.3 LOST OR STOLEN ATM OR
DEBIT CARD
• Before anyone uses an ATM or debit card without
permission, we notify the institution that issues the
card. As a result, we are not liable for any
unauthorized withdrawals. But, if unauthorized use
occurs before we report it, the amount we can be held
liable for is determined by how quickly we notify the
card issuer of the loss.

21. • Report the loss within two business days – the owner
could lose $50
• Report the loss within 60 days – the owner will lose as
much as $500 due to an unauthorized transfer
• Loss card is not reported within 60 days, after the
card issuer mails the statement- the owner lose
unlimited loss or all of the money in that account

22. •If unforeseen circumstances, such as extended
travel or illness, prevent us from notifying the
card issuer within the time frame specified, the
notification period must be extended.
Furthermore, if state or contract law imposes
lower liability limits than the Federal EFT Act,
the lower limits apply.

23. 6.1.4 OVERDRAFTS FOR ONE-TIME
DEBIT CARD TRANSACTIONS AND
ATM CARDS
• For accounts that we already have, unless we opt-in,
the transaction will be declined if we do not have the
funds to pay it, and we cannot be charged an
overdraft fee. If we open a new account, the bank
cannot charge us an overdraft fee for the one-time
debit card or ATM transactions, either, unless either
unless we opt-in to the fees.

24. • The bank will give us a notice about opting in when
we open the account, and we can decide whether to
opt-in. If we opt-in, we can cancel anytime; if we do
not opt-in, we can do it. these rules do not apply to
requiring payments from the account for those
transactions, the bank can enrol us in their usual
overdraft coverage.

25. 6.1.5 LIMITED STOP-PAYMENT
PRIVILEGES
• When we use an electronic fund transfer, the EFT Act
does not give we the right to stop payment. The
notice may be written or oral, but the institution may
require a written follow-up within 14 days of the oral
notice. If we do not follow-up in writing, the
institution’s responsibility to stop payment ends.
Institutions may offer more rights or state laws may
require them.

26. 6.1.6 ADDITIONAL RIGHTS
The EFT Act protects the right of choice in two specific
situations:
1. Financial institutions cannot require us to repay a
loan by preauthorized electronic transfers.
2. If we are required to get the salary or government
benefit check by EFT, we can choose the institution
where those payments will be deposited.

27. For more Information and Complaints:
If we decide to use EFT, keep these tips in mind:
• Take care of the ATM or debit card.
• Choose a pin for the ATM or debit card that is
different from the address, telephone number,
Social Security number, or birthdate.

28. • Keep and compare the receipts for all types of EFT
transaction with statements so we can find errors or
unauthorized transfer and report them.
• Make sure we know and trust a merchant or other
company before we share any bank account
information or pre-authorized debits to the
account.
• Read the monthly statements promptly and
carefully. Contact the bank or the other financial
institution immediately if we find unauthorized
transaction and errors.

29. THANK YOU FOR
LISTENING
GROUP 4
REPORTER 1 –ELECTRONIC BANKING --THE BASIC
MEMBERS:
CRIZIAH MAE BALLITOC IVY ROSE UMILA
DANIELLE T. DINAMLING RIESHEL BANTAO