Types And Features Of Online Financial Transactions

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Online Financial Transactions
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​These involve movement of funds or payment of goods or services done through a computer or any device connected to the internet.

Common Types Of Online Transactions

​​Bills Payment
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Payment of bills (e.g., credit card, utilities) through internet banking.

Remittance

Money sent or transferred to another account through an intermediary known to provide remittance services. Remittance commonly refers to the sending of money by Filipinos overseas to their beneficiaries.

Fund Transfer

• Intrabank transfers - money transferred from a depositor’s account to another account in the same bank.
• Interbank transfers - money transferred to an account in another bank.

Online Shopping

Buying or selling of goods or services over the internet.

Online Investment

Buying or selling of investment products (e.g., Unit Investment Trust Fund, stocks) over the internet.

Bank Account Monitoring

Tracking and recording activities or data related to a bank account.

Loan Monitoring

Tracking of loan payments and balances.

Features Of Online Financial Transaction

Generally Secured

Security features such as One-Time Passwords (OTP) are provided to protect against security risks (e.g., identity theft and phishing scam). 

Accessible and Convenient

24/7 accessibility from virtually anywhere is possible, provided you have internet connection. 

Efficient

You don’t need to contend with long and time-consuming queues in banks or in merchant shops.

Balance Alerts

Some services offer setup alerts to keep you updated on your account activities. This feature helps you monitor your accounts and avoid fees (e.g., transaction alerts and bill payment alerts). 

Important Considerations When Transacting Online

Security Risks

While we say that online transactions are generally secured, these are still susceptible to security risks. Be sure to protect your personal information online. 

Internet Disruptions

Secure a reliable internet provider as poor connection/server may disrupt and cause delay on your transaction or payment procedure.

Incorrect Information

For payment and fund transfers, make sure to double check the entries made before confirming the transaction to prevent sending either an erroneous amount of money or to the wrong recipient.

Delayed Posting Of Transactions

Not all online transactions are posted real time. Some are subject to the same over-the-counter transaction parameters. Make sure to keep a record of your transactions.