Application of this technology to consumer transactions includes Automated Teller Machines (ATMs) found in banks and other convenient locations, Point of Sale Terminals (POS) used in retail establishments, preauthorized payments
of mortgages and other recurring bills, automatic deposits of employee paychecks, telephone transfer systems, and internet banking services using personal computers.
This article examines changes over time in consumers' access to, adoption of, and attitudes toward various forms of electronic banking (e-banking), including the use of automated teller machines (ATMs), debit cards, direct deposit, preauthorized payments, phone banking, online banking, smart cards, and prepaid cards.
And the use of direct deposit and preauthorized payments, together with the availability of financial services via telephone and computer, means that consumers can initiate most transactions 24 hours a day, from remote locations.
Or they may use preauthorized payments and phone or online banking as complementary means of paying bills.
Does their increased use of online banking, phone banking, and preauthorized payments mean that low-and moderate-income consumers are better off?
A notable exception is the use of phone banking and preauthorized payments: a substantially smaller proportion of "other" consumers (predominantly Asians, Pacific Islanders, and Native Americans) reported banking by phone in 2006 compared with previous surveys, and a substantially larger proportion of this group reported using preauthorized payments.
Minimal users seem to make use of direct deposit and ATM and debit services (debit cards and preauthorized payments), but little else (table 7).
For example, they might point out that using preauthorized payments ensures that bills are paid on time, thus eliminating late fees.
The decline between 2003 and 2006 was accompanied by an increase in the use of debit cards and the number of ACH payments (for example, preauthorized payments).
For example, the proportion of older consumers using ATMs and preauthorized payment doubled from 1999 to 2006, the proportion using phone banking tripled, and the proportion using online banking increased tenfold.