Instant EFT for betting deposits: what happens when you log in to your bank

How an instant EFT deposit works, step by step

Instant EFT sits between you, your bank and the bookmaker. The South African Reserve Bank describes it as a payment method offered by a third party in partnership with online stores, which automates the start of a payment and gives the store immediate confirmation that it was made. Ozow, one of the best-known providers, sets out the same flow on its FAQ page. In practice, a deposit looks like this:

1. Choose instant EFT on the deposit page. The bookmaker hands you over to the payment provider's screen, with the amount and the bookmaker's reference already filled in.
2. Pick your bank. Ozow's FAQ names 9 banks: Capitec, FNB, Standard Bank, Absa, Nedbank, TymeBank, Investec, Bidvest Bank and African Bank.
3. Enter your internet banking login. A screen styled with your bank's logo asks for the username and password you use for online banking. This is the step that matters most, and it is explained below.
4. Select the account to pay from. The provider reads the accounts on your profile and asks which one to debit.
5. Approve on your phone. Ozow states that every payment must be authorised with two-factor authentication, which in practice is your bank's app approval or one-time PIN.
6. Confirmation. The provider tells the bookmaker the payment was made, so the balance can be credited straight away. Your bank sends its usual payment notification.

Behind the scenes, the money itself moves as a normal EFT from your bank account. Ozow says merchants get real-time payment notifications, while the funds settle in the merchant's account the same day or under standard interbank EFT rules. The speed you see is the confirmation, not a faster kind of money. Our page on instant EFT at gambling sites lists where this method is offered.

What the bank login step really means

When you type your banking username and password into the provider's screen, you are letting a third party log in to your internet banking as you, for that session. The technique is called screen scraping. In a consumer alert dated 26 November 2020, the SARB and the Financial Sector Conduct Authority (FSCA), in consultation with the Payments Association of South Africa (PASA), said they and the payments industry do not support screen scraping to make payments. The alert names four risks:

• Data privacy. You have no control over how your credentials and other data, such as account numbers and statements, are accessed and used by the third party.
• Fraud. Rogue sites can pose as instant EFT providers to capture banking logins and then make payments, apply for loans or raise limits in your name.
• Breach of your bank's terms. Sharing your internet banking login may breach the terms and conditions of your bank, which could cost you recourse if you suffer fraud.
• No dispute route. EFT payments are final and irrevocable, so you cannot lodge a dispute to reverse one the way you might with a card.

The alert's advice is to check with your bank, prefer card payments and not share internet banking logins with third parties. Providers put their side too. Ozow says payment and banking information is encrypted end to end, that it follows PCI-DSS Level 1 processes, that it does not save payment or banking details without your permission, and that it is licensed by PASA as a system operator and third-party payment provider. Both positions are on the record; the decision is yours, with the risks above in mind.

Instant EFT, card and ordinary bank transfer compared

Card payments to gambling merchants have their own rules on fees and blocking; our guide to bank cards and gambling transactions covers them, and the bank wire page covers manual transfers.

When a payment goes wrong

Ozow says it does not hold any funds and acts as a payment gateway. That shapes who you call:

• Money left your account but the betting balance did not move. Ozow's advice is to get proof of payment and contact the merchant, which here is the bookmaker. Send the proof of payment with the deposit reference and time.
• You cancelled, but think the payment went through. Ozow says to confirm with the merchant that the order was not processed and to contact your bank.
• You paid a fake site. Call your bank's fraud line at once and change your internet banking password. The SARB alert warns that a rogue site with your credentials could go on to use your online banking for other transactions.

Remember the cost side too. The SARB notes that where an EFT is paid from a credit card or overdraft facility, you may also be liable for interest on that amount.

Safer habits if you use instant EFT

• Start the deposit only from inside your logged-in bookmaker account, never from a link in an SMS, email or social media message.
• Check the provider's page address before typing anything. A login box with your bank's logo proves nothing on its own.
• Approve only the exact amount you chose. If the approval on your phone shows a different amount or payee, decline it.
• Change your internet banking password if you stop using instant EFT or suspect a problem.
• Use a transactional account rather than a credit facility, so a deposit cannot run into interest.

Fast deposits make it easy to chase losses. If that is happening, the South African Responsible Gambling Foundation's toll-free line is 0800 006 008, open 24/7, and deciding on a monthly deposit budget before you start makes a fast payment method easier to live with.