Programs, Providers Ease Internet Banking

Using a personal computer, a telephone and a modem, customers can go on-line with their bank in one of three ways:

Dial up the bank’s computer directly on a private telephone line, like placing a normal telephone call. The connection may be made to a bank’s proprietary system, or through a personal finance software program like Intuit’s Quicken or BankNow, or Microsoft’s Money.

Some banks give away the software a customer needs to communicate on-line, while others charge a start-up fee. Banks have varying policies on transaction fees.

Access the bank’s computer through an on-line service provider, such as America OnLine or CompuServe. This connection can also be made to a bank’s proprietary system or through a personal finance software program. The on-line service provider will charge a monthly fee, usually about $10, and the customer may also pay processing fees.

Some 28 financial institutions, including 23 in the United States, allow customers to bank on the Internet. Of the 23, five allow customers to transact business: Wells Fargo & Co.; BankAmerica Corp.; Huntington Bancshares Inc. in Columbus, Ohio; Security First Network Bank, an online-only bank; and First Union Corp. in Charlotte, N.C. The remainder allow customers only to view current information about their accounts.

Since Internet banking is not tied to a particular software program, it can be done from any personal computer. It has the advantage of costing the customer only for the phone call.

Some customers are leery of doing sensitive transactions over the Internet, although experts say innovations in encryption and coding have made it safer.