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Choosing Between Online Banking and Traditional Banking

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What exactly is a small business online banking? Small business online banking, or simply be-commerce, refers to the capability of individuals and small businesses to conduct regular financial transactions online in their behalf. Some examples of small business online banking are e-commerce websites, like those operated by Amazon or Overstock. Online banking allows small business owners to receive funds from a bank account almost instantly. Small businesses may also use online banking to obtain or transfer funds directly to their checking accounts.


Some options available to small business owners who are interested in using online banking include free checks, unlimited transactions, and no minimum balance for the ATM fee. No interest charge is also commonly offered for some transactions made via the Internet. However, it must be noted that most banks require clients to maintain an appropriate balance in order to offer free checks. As a result, some small businesses choose not to use online banking because they do not wish to have to maintain a checking or savings account in order to process deposits and make unlimited online transactions. This can be particularly important if the business processes a large amount of deposits each month.


There are a number of differences between conventional and online banking. For example, most banks require at least a TAN or VISA debit card in order to process any deposits and provide the option of making unlimited debit card transactions. Online banks do not require such cards and many banks do not offer the option of free checks, as is the case with traditional banks. Online banks generally require clients to maintain appropriate balances in order to offer free checks and require only a small balance for ATM fees.


The majority of small banks now offer online access through a variety of web applications. Some banks, such as Bank of America and Wells Fargo, are incorporating ecommerce into their core banking services. Many banks also offer mobile access via cell phones and PDAs, as well as the ability to conduct online transactions from an iPhone or iPad.


Marcella-Moro provides online banking to small businesses in the San Francisco Bay Area. Online banking options include business checking, and savings accounts, as well as credit card financing and wire funds transfer services. Business checking provides employees with a digital means of keeping track of their personal and business finances. Savings accounts can be used to save for start up costs or for expansion, while credit-cardcard financing can be used to purchase products and services. Wire funds transfer services include automatic bill payment, which eliminates the need for employees to write checks.


Small business owners have several options when it comes to choosing the type of bank they would like to use for their business financial needs. Businesses can also choose between traditional, online-only banking and Internet-based business banking. With an online-only banking, businesses can conduct all of their banking transactions over the Internet. Online businesses, however, may not be able to accept payment through electronic methods. Internet-based businesses usually provide businesses with the option of online banking that uses secure connections.

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