DISADVANTAGES OF DEBIT CARDS

1. Record keeping is mandatory. When youre using a debit card you have
to note each transaction so youre not in danger of over drafting from
your account. You need to know what your balance is at all times. If you
over draw from your account youre going to accumulate banking fees
which can sometimes be as much for each transaction you conduct after
youve gone in the negative. You also run the risk of severe
embarrassment if youre rejected from a store with a long line of
customers behind you.
2. Convenience is not always guaranteed. If you happen to be at a place
that doesnt take a debit card, then youre up the creek. It only seems like
every store or restaurant takes a debit card. Youre bound to come across
a place that wont take your card at least once or twice a month.
3. Hidden fees are everywhere. If youre not using an ATM affiliated with
your bank then youre going to have to pay a fee. On top of that, many
banks then charge a foreign ATM fee. These fees can get as high as ten
dollars a pop. Always read the fine print before you take cash out with
your ATM debit card.
4. Internet scams are commonplace. If you use your debit card to
purchase goods online then you have to be careful. Your information can
get lost in cyberspace and fall into the wrong hands.
5. Is your card lost or stolen? This is the worst feeling in the world. You
want to believe that nobody would ever do anything wrong with your
information, but your card can fall into the wrong persons hands. If you
make a delivery order with someone over the telephone, they now have
your card number, expiration date and security code.
Credit card
A credit card is a small plastic card issued to users as a system of payment
when you used it, you can get the goods you bought without paying for it yet.
Credit cards are a widely used source of convenient credit for restaurants,
hotels, mail order, on-line shopping, gasoline stations, grocery stores, dental and
medical care, as well as telephone and television advertised products.
Disadvantages
Some people have been swindled by giving their credit card numbers to
dishonest salespeople over the phone.
It becomes a loan when the credit becomes due and you do not pay for it.
Adding monthly interest charges means you pay more for the goods and
services.
Consumers often have more than one credit card and each one has a credit limit.
When the credit limits for all cards are added up, the total can be in the
thousands of dollars. Consumers can fall into the habit of using credit cards to
extend their income.
Credit cards are easier to use than applying for loans even when a loan from a
credit union, bank or other financial institution may provide the funds at a
lower interest rate.
INTERNET BANKING
ADV.
One doesn't have to go to the bank's branch to request a financial statement.
You can download it from your online bank account, which shows you up-to-
the-minute updated figures.
Another advantage of Internet banking is that it is cost-effective. Thousands of
customers can be dealt with at once. There is no need to have too many clerks
and cashiers.
The administrative work gets reduced drastically with Internet banking.
Expenditures on paper slips, forms and even bank stationery have gone down,
which helps raise the profit margin of the bank by a surprisingly large number.
As far as customers are concerned, their account information is available
round the clock, regardless of their location. They can reschedule their future
payments from their bank account while sitting thousands of miles away. They
can electronically transfer money from their bank accounts or receive money
in their bank accounts within seconds.
You can buy or sell stocks and other securities by using your bank accounts.
Especially with the increasing acceptability of digital signatures around the
world, Internet banking has made life much easier and banking much faster
and more pleasant, for customers as well as bankers.
Comparing internet banks to get the best deal is easy. In a short time, you can
visit several online banks to compare what they offer re savings and checking
account deals as well as their interest rates.

Other things you can easily research are what credit cards are available, credit
card interest rates, loan terms and the banks own rating with the FDIC.
Disadvantages of Internet Banking

Impersonal. Doing transactions on the internet can be very impersonal. In other
words, you only do business with the use of a computer. No individual to
receive and check your money or correct some wrong information that you
might have written on a certain form. And so for Some people prefer talking
personally to a person in case of a problem. They prefer the personal touch
aspect of customer service.

Lack of trust. Let's face it, many people still don't trust the internet. For the
new users who have performed financial transactions for only a few times, they
may still have this doubt whether or not they did the right thing such as clicked
the right button and so on. They can only be comfortable once they print the
transaction receipt and the transaction appeared on the bank statement.

Difficult for first timers. For a first time user, navigating through a website of
an internet bank may be hard and may take some time. Opening an account
could also take time as some sites ask for numerous personal details including a
photo identification which can inconvenience the potential customer. Because
of this complexity, they may be discouraged to use this internet banking service.
Tutorials and live customer support may be provided, though, to help the client
in his or her needed tasks so it's best to take the time to know the virtual
environment.

Security fraud. Many people shy away from internet banking because of the
security threat. They can't help but worry about this aspect what with news on
fraudulent bank transactions that pop up every now and then. However, this
should not be a problem as banks that provide internet banking services
prioritize security above anything else. Since they value their customers, they
always use the most advanced security technology in protecting their websites.
TELEBANKING
ADV
saves time : You may not have time to visit your bank every week and if your
business is located out of town, getting to a branch can be time consuming and
expensive. With telephone banking, your bank is on the other end of the line
whenever you need it.
Tele banking has an edge over internet banking. In case of online banking,
you must have an internet connection and a computer. This is a problem in
developing countries. However, with tele banking, connectivity is not a
problem. You can find telephones connectivity in the remotest of places also
where having an internet connection is a problem.
reduces the risk of fraud : Banking through mobile reduces the risk of fraud.
You will get an SMS whenever there is an activity in your account. This
includes deposits, cash withdrawals, funds transfer etc. You will get a notice as
soon as any amount is deducted or deposited in your account.
DEMAT-
The term Demat, in India, refers to a dematerialised account. For individual
Indian citizens to trade in listed stocks or debentures. The Securities Exchange
Board of India (SEBI) requires the investor to maintain a Demat account. In a
demat account shares and securities are held in electronic form instead of
taking actual possession of certificates. A Demat Account is opened by the
investor while registering with an investment broker (or sub broker). The
Demat account number which is quoted for all transactions to enable
electronic settlements of trades to take place.
Conclusion
The potential of E-banking is huge. With the increase in connectivity, the
number of users will explode.
Technology in the form of electronic banking has made it possible to find
alternate banking practices at lower costs and more and more people are
using electronic banking products and services to meet their banking
needs.