Disadvantages of Internet Banking
By Scott Cornell
It's easy to see the benefits of Internet banking. It's easy, convenient and, unlike a bank's physical location, the Internet doesn't abide by any business hours. Further, you can make instant transfers between accounts, pay bills electronically to save postage, and you can access your bank account from anywhere, as long as you have an Internet connection. But despite all the pros associated with online banking, there are some disadvantages and risks associated with it as well.
Most banks make sure that their websites are secure, but no bank website is immune from cyber crime and hacking. Hackers target bank websites to swipe account information. Not only can identity theft put you out of hundreds, perhaps even thousands, of dollars, but it can take time to correct the damage, and it's estimated that only 25 percent of cyber crimes are resolved. So even though your bank may claim that its site is secure, you should always proceed with caution, especially if you're banking from your mobile phone.
One disadvantage of Internet banking relates to withdrawing money. While most businesses accept debit and credit cards, people still like to have cash on them too. Hence, you can't withdraw cash over the Internet so you still have to visit your bank's physical location, or eat service fees by withdrawing money at an ATM that's not associated with your bank. This becomes even more challenging if you belong to an online-only bank, as you may be forced to withdraw cash through snail mail or paying ATM fees at every withdrawal.
It's likely that your paycheck is directly deposited into your bank account, saving you a trip to the bank. But there are still times when you'll have to make a deposit to your account. Although many banks have released mobile apps that allow you to scan a photo of your check for automatic deposit, this feature is beneficial only for people who own smart phones. Those who don't must visit their bank's physical location to deposit money or send the deposit in via snail mail for online-only banks.
Although online banks have implemented chatting features and offer customer service numbers for those with questions and inquiries, it still doesn't compare to the customer service you'll receive by banking at a physical bank location. For instance, if you are onsite, you can meet with employees and receive information on important topics such as financing, credit card rates and types of loans all in addition to standard banking.