Online personal banking has become the preferred way for many consumers to handle their day-to-day finances. With the proliferation of online account access and options with even the smallest banks and credit unions, many banking customers have discovered the convenience of being able to write checks, transfer funds to another account, pay bills, make loan payments, and even check loan balances from the convenience and privacy of their personal computer screens. Since over 70% of the transactions are funds withdrawals of one type or another, writing an online personal banking check has become one of the most coveted conveniences offered by the online banking revolution.
How a Personal Banking Check Works
Most online banking services work in much the same way. The customer logs into an online access account using a login name and a password. Banks use sophisticated verification systems that protect customers from identity theft and unauthorized access. After the verification process is complete, the customer is able to view account balances. For some banks, this includes loan accounts, mortgages, savings accounts, and even retirement accounts that are controlled by the customer.
To write a personal banking check, the customer enters a program that authorizes withdrawals from the account. Most of these programs are provided by third-party vendors, rather than the bank itself. For the customer, however, the functionality makes this relationship transparent; as far as the user is concerned, he or she is simply authorizing a payment from the account to whatever party the customer wishes to send funds.
Many larger companies can accept electronic funds transfers from the bank account; such transactions can often be completed in two business days or less. For smaller companies or individuals, however, the personal banking check system actually prints a check that is mailed to the address of the payee as specified by the banking customer. These payments can take eight days to be completed, depending on the distance involved.
Keeping Track Of a Personal Banking Check
Most online personal banking check services offer users the ability to estimate the time needed for payment to arrive, which is a large help in planning ahead to make sure payment deadlines are met. Additionally, once the transaction is posted to your bank account, the online system will give you an up-to-date report of your available balance. If you have insufficient funds in your account to complete the transaction in the time frame you request, your account will make you aware of this, also, and will not allow you to complete the transaction.