Banking Applications (Cambridge (CIE) IGCSE ICT)

ATM

What is an ATM?

• An Automatic Teller Machine (ATM) is used in the banking industry to provide customers with convenient access to financial transactions 24/7

• Characteristics and uses of ATMs:

  • Withdrawing cash: Obtain money from a bank account

  • Depositing cash or cheques: Add funds to a bank account

  • Checking account balance: View the current balance of a bank account

  • Mini statements: Obtain a summary of recent transactions

  • Bill paying: Settle utility bills and other payments

  • Money transfers: Sending funds to another bank account

Advantages and disadvantages of ATMs

EFT

What is EFT?

• Electronic Funds Transfer is a way of moving money from one account to another

• EFT is used primarily for:

  • Salary deposits

  • Bill payments

  • Online purchases

EFTPOS

• Electronic Funds Transfer Point Of Sale (EFTPOS) is used by retailers to allow customers to make purchases using a debit/credit cards

• The process involves:

  • Data being read from the chip (using RFID / NFC if it's a contactless payment)

  • The business bank's computer contacts the customer’s bank's computer

  • The card is checked if it is valid

  • If the card is valid the transaction continues

  • If it is not valid the transaction is terminated

  • An authorisation code is sent to the business

  • The price of the item is deducted from the customer’s account

  • This money is added to the business' account

Advantages and disadvantages of EFT

Internet Banking

What is internet banking?

• Internet banking is a secure online platform for accessing and controlling a persons bank account

• Internet banking can be accessed via the internet through a secure website or by using the bank's official app on a smartphone

• Internet bank allows for transfers, bill payments, account management and much more

Advantages and disadvantages of Internet banking