In the early eighties Bank of America was the first to offer online banking, with a crude DOS based program. It didn't catch on as fast as many experts expected. There were many reasons that would begin to become less problematic in the following years. In 2002 it was estimated that fifteen million households would use online banking. The increased internet security, and more widely available internet access, helped online banking become more widely accepted.
             Without the capacity to handle direct electronic payments, online banking can actually take longer than mailing a paper check. The transaction is processed electronically, but the bank is required to print out a check and mail it to the recipient of the payment. When the bank sends out the check, there is no paper coupon included that many companies use to input the payment into the computer. Missing coupons have caused several payments go astray, which could be potentially devastating. As more companies become equipped to handle electronic transactions, this will problem will decrease. Another problem in the nineties was poor internet security; which has seen major improvement in the last decade. All web browsers are now equipped with encrypting procedures to scramble information from a secure server. These procedures have made the encrypted information much safer.
             One of the first benefits, realized by banks and retailers, is the decreased cost. The cost of a full teller transaction is $1.07, a telephone transaction is $.54, and an automatic teller machine transaction is $.27. Although the ATM transaction looks much cheaper than the alternatives, an internet based transaction costs $.01, which is enough to affect the bottom line. The added convenience is also a major reason online banking is increasing at such a rapid rate. Between 1998 and 2002, there has been a 68% rise in U.S. households with access to th
             ...