Banking safely online

Be smart. The best protection is to be smart. The online world is no safer (or more dangerous) than the real world. Just as you wouldn’t give financial information to anyone on the street who asks for it, don’t give it to anyone who emails asking for it. This means not responding to any unsolicited email from banks asking for account details and, in particular, passwords. Even if the email seems legitimate, it’s worth phoning your bank to check. The cost of a phone call is a small price to pay.

Take responsibility. Ultimately, business owners should take responsibility for the security and safety of their banking processes.  Take the time to understand the options and put in place security processes.  For example, the Australian Government website www.staysmartonline.gov.au and the Internet Industry Association website www.security.iia.net.au have a number of resources on online security.

And, of course, sometimes there is no substitute for having that personal contact at the end of the phone with the bank’s client manager.

Common sense electronic banking controls:

* Two company officers to approve all payments/transfers.

* Secure passwords. They should be input without others observing, changed regularly, and never written down.

* Bank reconciliations completed by staff not involved in the payment functions, with bank statements reviewed independently.

* Security arrangements confirmed regularly with the bank.

* Bank authorities of terminated employees removed as soon as they depart.

* Carolyn Patman is a director in business services for accountants and business and financial advisers HLB Mann Judd Sydney.

Safety For Sellers

PayPal has introduced Seller Protection for Australian eBay sellers, meaning sellers no longer have to bear the costs of buyers reversing their payment because of an ‘item not received’ dispute.

“For the first time, Australian eBay sellers will have confidence in knowing they could be protected against losses they’re not responsible for,” says Andrew Pipolo, PayPal Australia managing director.

Sellers who’d like protection need to meet the eligibility criteria, including proof that the item was posted to the correct address.

“Although this type of problem is rare, this new level of protection provides greater confidence when selling on eBay with PayPal,” says Pipolo.

Do You Bpay?

Over the past 18 months Bpay has noticed an increase in SME billers, and is now developing an SME offering. While it is essentially the same service currently available through a bank’s internet site, it will have a simplified sign-up and evaluation process.

Here’s why some SMEs are turning to Bpay:

* Cash flow. Manually processed payments, or those in transit, can significantly reduce the cash position of a business. Bpay reduces the cost of administration and reconciliation, and eliminates costs associated with tracking dishonoured or returned payments.

* Cleared funds overnight. The proceeds of Bpay payments are deposited into the biller’s nominated account by financial institutions every business banking day—no dishonoured cheques or stopped payments.

* Fee structure. Payments are primarily flat fee transactions so there is no increase based on the amount being paid.

* Customer relations. Consumers can pay bills with a phone call or online.