What is online banking?

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Online banking is an electronic payment system that lets bank account holders perform transactions online. The transactions flow through the online banking environment. Online banking is available for both individual and corporate clients. Also, online banking can be an Internet service of the brick-and-mortar bank as well as of the virtual bank.

For a variety of banks, it took some time to acquire clients online. But during the last decade, online banking became a popular payment method. To access the online baking service, a user needs to have an account in the offline/virtual bank. Then s/he has to use the online application and create an account. Various banks will require different data to create an account online.

A part of the online banking services is bank wires and bank transfers. Bank wires refer to the electronic messaging system that allows banks to fine-tune a variety of actions regarding customers’ accounts. Bank transfers are the online transmission of funds from one bank account to another one within one country or cross-border.

All-in-all, online banking let customer perform a wide range of operations. From checking balance to transferring money to other accounts between different banks.

What are the benefits of online banking?

So, we’ll talk about bank transfers as they are initiated via online banking. Probably, the biggest benefit of this payment method for both clients and sellers is security. Clients can feel totally safe as they are making the high-ticket purchase(s). Moreover, if the customer has no credit card, it’s still possible to pay online. The person simply needs to initiate the payment via the bank transfer. Of course, the client has to own a bank account to use this method.

On the other hand, the main pro of this solution for merchants is that it’s not reversible. That to say, once the customer initiates the payment via the bank transfer, s/he cannot reverse it. The shopper can only ask for a refund. On top of that, merchants feel much safer with this payment system as there is no chargeback threat. The bank transfer is also very safe for the merchant. The shopper can only initiate the transfer if s/he has enough money on the account.

How to use online banking

To employ bank transfer, the customer needs to choose it as a payment method. Then s/he has to enter the bank account number and the payment reference (which is his/her name or the merchant’s name).

Why you should use online banking

If you work in the industry that involves a high risk of refunds or chargebacks, a bank transfer is a go-for solution. Ikajo is ready to offer online banking solutions in SEA, EEA, and MENA regions. Here is the list of the banks we partner with to enable the wires: