Online banking and bill payment are useful resources for students.

They offer quick, efficient ways to automatically take care of mundane tasks.

But there are also some pitfalls online patrons face while managing their money on the Web.

PROS

1. You can do your banking anywhere, anytime, wearing whatever you want.

2. It quickens the process of banking, allowing for quicker returns on checks and loans.

Jeff Reynolds, an economics instructor at NIU, says of the improved efficiency, “Direct deposit and automated clearing houses make the system much more efficient. The money gets to the places and individuals, students for instance, that it is supposed to much quicker than normal.”

3. Some experts consider online banking to be much safer than traditional banking practices. Due to the Check 21 Act, banks can make a copy of a check, which is now considered as financially viable as the check itself. Besides drastically increasing efficiency, it eliminates potentially stray checks floating around.

“Now, I can send money to someone across the country without having to mail it, which is much more secure,” Reynolds said.

CONS

1. Users are still dealing with human error. For instance, if someone accidentally puts an extra zero on the end of a bill and it is not monitored carefully, it can go unnoticed for quite some time.

“People should handle their online banking in the same way they would handle traditional banking, by checking up on it regularly to make sure everything is in order,” Reynolds said. “When everything is done automatically, the consumer tends not to calculate everything as closely to the penny.”

2. Users are up against scam artists and online thieves. As encryptions have gotten better, so have the online criminals.

“With something like direct deposit, your routing and account numbers are out there. Even though the chances are low, there is definitely the opportunity for theft,” Reynolds said.

3. There’s a whole new set of risks. Instead of the risk of losing a check or a $20 bill, users have the risk of losing their PIN or login password. Losing one of these can result in the disappearance of far more than funds.

4. Things can become complicated in terms of fees.

“You have to make sure your account is set up correctly for what you wish to do, unless charges will follow,” Reynolds said.

Gil Grissom, senior forensics major, had a negative experience of this kind.

“I used to bank online, but soon I found out I was being charged a $5 monthly charge for doing so,” Grissom said. “Because of it, my account was overdrawn. I don’t bank online anymore.”