Internet bank

Traditional banking has expanded its services to include access from homes and offices via the Internet. Two major formats are the extension of local retail bank's services to include a personal pc-based interface, and the online, or virtual bank.

Most community banks and other consumer-oriented financial institutions now allow their customers to log into the bank's website. Using their unique user name and password, bank customers can access their accounts

online, move money between accounts, make deposits and withdrawals, and pay bills. These banks also issue bankcards, or debit cards, that are used in the same manner as credit cards but withdraw funds directly from existing bank accounts just as checks do, while taking little or no time to clear.

Software packages such as Microsoft's Money, Intuit's Quicken, and Kiplinger's Simply Money allow individuals to maintain detailed budget spreadsheets, pay bills online, and interface directly with their bank account for automatic updates. Add-on modules or product upgrades extend abilities to online tax filing, stock trading, and currency exchanges.

Some financial institutions are almost entirely Internet based, making them virtual banks. The advent of Internet sales and online stores created a need for a web-based interface with financial services. PayPal is an example of one such Internet banking solution. While it is not technically a bank, PayPal adheres to banking regulations and offers many of the same features as a traditional bank. You can deposit and withdraw money, bill for goods and services, use its debit card in stores, and it even issues its own credit card.

E-commerce, short for electronic commerce, evolved from industrial web use. Industries began using the speed and accuracy of email and more secure encrypted data packets to place wholesale orders, send and receive funds, and coordinate production and reorder schedules. As the Internet became more consumer-oriented, these practices included online retail shopping, credit card and electronic check, or e-check, processing, and other forms of commerce such as small private trade as epitomized by eBay.

Internet based stock trading has evolved to allow an individual to buy and sell stocks instantly from their personal computer. Companies that offer these services online also maintain one or more holding accounts for funds, or link to bank accounts that may pay interest or dividends on rolling balances.