Your bank may offer one or more of these mobile banking options:

• Text, or SMS (short message service).  This service enables you to receive account information and alerts via text message. It is compatible with any cell phone that supports texting.  Typically, you cannot conduct transactions through this avenue.
• Online banking via mobile device. You log on to your bank account using the Web browser on a laptop, I-Pad, or desktop computer. It enables you to do all the same things you can do with online banking. This requires a Web-enabled device and a data service plan.
• Mobile banking applications. “Apps” are downloaded and installed on a smartphone, tablet or PDA. On a small screen, a regular website is cumbersome; the mobile app lets you act more quickly and navigate more easily. Most mobile banking apps allow you to conduct the full range of on-line transactions.

What are mobile payments?

Mobile payments are payments you make using your mobile device, instead of writing a check, handing over cash or pulling out a credit or debit card.

There are many types of mobile payments:

Mobile Web payments allow you to make purchases remotely, when shopping on your mobile device via a downloaded app or your Web browser. The purchase amount is charged to a pre-defined payment mechanism: a credit or debit card; a pre-registered Internet payment service account; or a “digital wallet” (a program that stores your payment and shipping information for Internet and electronic transactions).

Mobile text (SMS) payments allow you to make purchases via text message. This is also known as “text to buy.” The transaction might be added to your wireless service bill, or it might be charged to one of the pre-defined payment methods mentioned above. This type of mobile payment is used for small transactions, like downloading songs or ringtones, paying parking fees or transportation fares, or buying movie tickets.

Direct mobile billing allows you to have purchases added directly to your wireless service bill at checkout if the option is available.

Mobile peer-to-peer (P2P) payments are typically small, informal transactions between two people—for example, paying a handyman or covering part of a dinner bill. The payment may be made using an app or, less commonly, by touching two smartphones together.

Mobile point-of-sale payments let you make purchases at the cash register or other point of sale simply by tapping or waving your mobile device close to an electronic reader. This payment option is becoming more widely available as phone manufacturers and merchants install the necessary chips and chip readers.

What to know. Banking and making purchases by mobile device isn’t particularly risky, but that doesn’t mean it is absolutely risk-free. It’s important for anyone who uses mobile banking and payment technology to be aware that:

• You can lose access to your accounts if you’re outside your wireless service coverage area or if your phone battery is dead. Bill payments could be late if you can’t get service in time to place the payment request. (This is a great reason to pay bills at least two – three days early.)
• Because of its size, a mobile device can be misplaced.  A lost phone would not only be inconvenient, but might also enable the person who finds your phone to make purchases on your accounts and access your personal and financial information.
• Anytime you send sensitive information over an unsecured wireless network, it could be exposed.
• It is essential to keep your antivirus and firewall protection up-to-date.
• If your mobile plan includes text messaging limits or roaming fees, then mobile banking could cost you money.

Susan