Online Banking Key Terms

Learn more about online banking

Online banking is a popular way to take care of banking without having to leave home. Many consumers find online banking an easier way to pay bills and take care of other banking business. Online banking also offers a way for businesses and individuals to reduce paper waste and get quicker updates on the status of their banking accounts. There is a variety of tools that can be used with online banking that traditional banking may not offer.

Access device

An access device is is a personal card or security code issued by a bank for customers to access their account. In online banking, this is usually a banking password or bill payment code to transfer funds or pay bills electronically.

Data Encryption Standard (DES)

The Data Encryption Standard is a standard accepted by the financial industry that protects a consumer's access codes and other personal information when using online banking.
National Institute of Standards and Technology has posted the data encryption standard on its website.

Electronic check, echeck

An electronic check is a type of payment that can be made through an online banking account that is equal to a traditional paper check, but, because of the electronic format, it can be processed quicker.

Federal Reserve Board

The Federal Reserve Board is the national regulatory body that governs commercial and nationalized banks in the United States.
Federal Reserve Board provides regulations for electronic and online banking practices.

Digital wallet

A digital wallet is a type of software that allows consumers to complete electronic payments with some type of financial instrument, such as a credit card.
Digital Wallets Project from Stanford University offers information on the study of the use and characteristics of digital wallet software.

Direct deposit

Direct deposit is the process of sending a person's paycheck directly to his or her bank account. This is done through providing an employer with specific banking information.