In today’s world, we have a wide selection of payment methods to choose from, with many modern payment methods on the scene that make older processes like bank transfers obsolete. These include contactless payments, e-wallets, and smartphone payments on apps such as Apple Pay and Google Pay.
But is this really the case and are older payment methods now worthless? We will explore why plenty of online platforms still use bank transfers today, even with the numerous contemporary alternatives in the market.
Simply put, bank transfers are incredibly safe and dependable. While the payment processing times can be slower, they remain one of the most secure payment options available. Many online platforms that require safe payments offer bank transfers as a payment option. For example, some of the best casinos offer bank transfers due to their safety. This steams from the fact that there is direct processing by the banks without intermediary involvement, which makes the process safer and simpler.
On top of this, there are stringent security protocols associated with bank transfers, as well as extra controls and regulations involved. This includes aspects such as data encryption, authentication, active monitoring of payments and financial regulation compliance.
As the risk of cybersecurity threats increases, lines of defence such as Data are increasingly becoming important. This is a process in which electronic data is turned into an unreadable form before being sent. For example, you may have entered your bank details on a payment form. Before the form is sent, the details are scrambled in such a way that they can only be decoded back into a readable form of your payment details by the bank at the other end.
This is essentially a foolproof method to prevent data interception by cybercriminals. If your payment details are intercepted, all the criminals will see is the encrypted gibberish, so they will not be able to do anything with the info. Bank transfers use data encryption to protect your sensitive information.
Data encryption in the world of business and online payments is imperative, but it is usually paired with user and payment authentication. Bank transfers usually include some type of authentication so that the sender and recipient banks know that it is you who is requesting or sending the payment and not someone who has stolen your payment details.
A simple type of authentication process for bank transferals is entering your card details, such as the long account number or security code on the back of your card. Additionally, it is now commonplace for two-factor authentication (2FA) to be required for bank transfers. This is where you enter a unique code sent via an email link, SMS, or authenticator app.
The security features do not stop at authentication and encryption as banks have entire departments dedicated to fraud. Fraud detection and prevention are two of the most important competencies in modern banking. Most of us have experienced this in action with our own bank accounts. For example, you are on holiday trying to make payment, or you have attempted to make a large bank transfer payment only to receive a phone call or have the payment blocked.
This is because banks actively monitor transactions and look for irregularities. This can be annoying, but it is also an effective security measure and is one of the main barriers to account fraud. Usually, you simply have to contact the bank or even reply to an SMS to prove that you initiated the transaction so it can be processed.
Lastly, remember that banks are regulated by bodies such as the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). This means that they must comply with industry standards and banking laws that include protecting customers and providing payment assurances.
If the bank does not do everything in their power to keep your transfers secure, they are falling short of regulatory standards, which would be a huge blow to their reputation and industry standing. It could also potentially have legal consequences.
As you can see, bank transfers are incredibly safe and they are one of the most reliable payment methods available, which is why they remain popular. Aside from the security features, there are some things you can do to help yourself and make your bank transfers run smoothly:
Vigilance and care are the keywords here and you just must think carefully about how, when, and why you use bank transfers, and always act responsibly with your payment details.
Despite the advancements in modern online payment methods, bank transfers continue to be one of the most reliable options and should not be discounted. Indeed, for larger sums of money, bank transfers offer greater protection and security features due to the rigorous financial regulations the banks operate under, and the monitoring they do to prevent fraud and scam payments.
