40. Commercial bank services: internet banking system.

The precursor for the modern home online banking services were the distance banking services over electronic media from the early 1980s. Online banking-is an electronic payment system that enables customers of a financial institution to conduct financial transactions on a website operated by the institution, such as a retail bank, virtual bank, credit union or building society. Online banking is also referred as Internet banking. To access a financial institution's online banking facility, a customer with Internet access would need to register with the institution for the service, and set up some password (under various names) for customer verification. To access online banking, a customer would go to the financial institution's secured website, and enter the online banking facility using the customer number and password previously setup. Some financial institutions have set up additional security steps for access to online banking, but there is no consistency to the approach adopted. The common functions fall broadly into several categories:

• A bank customer can perform non-transactional tasks through online banking, including: viewing account balances, viewing recent transactions, viewing images of paid cheques, ordering cheque books, Download periodic account statements, Downloading applications for M-banking, E-banking etc.

• Bank customers can transact banking tasks through online banking, including: Funds transfers between the customer's linked accounts, paying third parties, including bill payments and third party fund transfers, Investment purchase or sale, Register utility billers and make bill payments

Some financial institutions offer unique Internet banking services, for example: personal financial management support, such as importing data into personal accounting software. In Ukraine allmost all banks have their own internet banking system. An important part of internet banking system is telephne banking. Telephone banking is a service provided by a bank or other financial institution, that enables customers to perform financial transactions over the telephone, without the need to visit a bank branch or automated teller machine. Telephone banking times can be longer than branch opening times, and some financial institutions offer the service on a 24-hour basis. From the bank's point of view, telephone banking reduces the cost of handling transactions by reducing the need for customers to visit a bank branch for non-cash withdrawal and deposit transactions.

41. Commercial bank services: check guaranteed.

Check guarantee: service provided by a bank or a third party that guarantees the payment of a check (up to a specified amount) provided the party accepting the check follows prescribed procedures.

A check guarantee refers to different services that assure vendors who accept checks that the funds for which a check is written will be covered through the guarantee. There are several different types of guarantee services available, some offered through banks upon which a check is drawn, but most of them available through third parties. Although these methods of guaranteeing a check — especially when offered through a third party — cost merchants money, they may save money in the long run. They give merchants the opportunity to more confidently accept payments in the form of checks without worrying that a check will bounce.

Banks may sometimes offer a check guarantee in different forms. This may be done on an individual basis, when a merchant calls a bank to simply verify that there are funds in the account to cover the check. This isn’t a promise that funds will still be available when the check is deposited and is instead for the purpose of verification only. For greater security, merchants could ask for more secure check forms like money orders, cashier’s checks, or even traveler’s checks. These are secure, since the bank has already been paid to produce them, and they are treated as “same as cash” due to the way they’re obtained.

Check guarantee is a service that a business can use to protect themselves from bad, bounced, and returned checks. When a business signs up for check guarantee services they significantly reduce the risk involved in accepting checks at their place of business. Check guarantee companies will pay them the full amount of a check if it's bad, bounced, or returned.

Checks are accepted at the point of sale or in the field by the business. If the check is rejected by the bank because of non-sufficient funds, stop payment, or account closed it is sent back to the business. If the business has a check guarantee service they have two options on how to submit the check for guarantee. The First option is to have their bank send all their returned checks directly to the check guarantee company; this option is the fastest and easiest. The second is for the business to have bad checks returned back to the place of business; from there they can decide which checks they want to send in for guarantee, this option gives more flexibility. If the check meets the basic requirements for of the guarantee company, the full amount of the check is reimbursed to the business. At this point most check guarantee companies take full possession of the check and attempt to collect the debt from the check writer.