Be careful about making Instant EFT payments

[Bradley Prior]

Be careful about making Instant EFT payments

The South African Reserve Bank (SARB) and the Financial Sector Conduct Authority (FSCA), in consultation with the Payments Association of South Africa (PASA), has issued a warning to consumers regarding the risks of using instant electronic funds transfer (EFT) services. [Bloomberg]

 

[Sapphiron]

It's a stupid system that should not exist

The only one that got it right was payfast, which supported manual EFTs, to allow for instant payment processing.

But they killed that off as well.

And now retailers need to pony up more money to credit card companies.

 

[MGRobinson]

All online stores that I have purchased from recently accept instant EFT this way, including the big ones such as Takealot, Loot, Bid or Buy, Makro.

The thing is that the fees for accepting instant EFT as a merchant are much less than accepting CC, Zapper, etc., payments - so why wouldn't they encourage customers to use this method of payment? I mean Ozow even give a year of no fees to any new merchants.

 

[maumau]

Pardon my ignorance ... Are they saying that if you buy from, say Takealot you should pay by credit card rather than logging into your bank through Takealot?

 

[deweyzeph]

I don't understand why anyone would want to pay for anything online via EFT. Even the most basic bank accounts these days come with a debit card that you can use anywhere online where a credit card can be used. There's really no excuse to be using EFT to buy stuff online.

 

[Praemon]

The method mentioned is absolutely dangerous, and glad regulators are taking a stance on it. HOWEVER, the whole reason these platforms even exist is because South Africa is years behind other countries like the UK and Australia who offer faster payments where payments are instant between banks with no additional fees, including open banking APIs which facilitate safe, easy and fast payments between bank account holders. If regulators like PASA actually did their jobs there wouldn't be a need for these types of platforms in the first place.

 

[deweyzeph]

The method mentioned is absolutely dangerous, and glad regulators are taking a stance on it. HOWEVER, the whole reason these platforms even exist is because South Africa is years behind other countries like the UK and Australia who offer faster payments where payments are instant between banks with no additional fees, including open banking APIs which facilitate safe, easy and fast payments between bank account holders. If regulators like PASA actually did their jobs there wouldn't be a need for these types of platforms in the first place.

There is no need anyway for these platforms anyway. You can just use your debit card. It's safer and easier than an EFT.

 

[backstreetboy]

Meh if your bank doesn't have 2fa move to a different bank...

 

[noxibox]

The method mentioned is absolutely dangerous, and glad regulators are taking a stance on it. HOWEVER, the whole reason these platforms even exist is because South Africa is years behind other countries like the UK and Australia who offer faster payments where payments are instant between banks with no additional fees, including open banking APIs which facilitate safe, easy and fast payments between bank account holders. If regulators like PASA actually did their jobs there wouldn't be a need for these types of platforms in the first place.

It's an improvement over UK banks not too long ago. Back then we couldn't even transfer immediately between two accounts belonging to the same person at the same bank.

 

[Swa]

There is no need anyway for these platforms anyway. You can just use your debit card. It's safer and easier than an EFT.

Not always. Credit card details have been intercepted so many times people feel safer using EFT. Some shops even give you discount for using EFT over debit card. It's also not a realistic option for things like investments where costs come back to the consumer. But a lot of shops had their own instant EFTs, except for Capitec that don't offer business accounts, until PASA wanted to kill this as well. Really our banking sector and their protectionism tactics are so far behind they're killing any innovation.

 

[SHL]

I always use instant EFT and never had a problem. Those who are gullible and ignorant about it shouldn't use it.

 

[deweyzeph]

Not always. Credit card details have been intercepted so many times people feel safer using EFT. Some shops even give you discount for using EFT over debit card. It's also not a realistic option for things like investments where costs come back to the consumer. But a lot of shops had their own instant EFTs, except for Capitec that don't offer business accounts, until PASA wanted to kill this as well. Really our banking sector and their protectionism tactics are so far behind they're killing any innovation.

They may feel safer, but it's just an illusion. Debit and credit cards come with chargeback protection. EFT does not. If you lose your money via EFT to some scam site it's pretty much gone forever. Paying by debit or credit card is infinitely safer than paying by EFT.

 

[Swa]

They may feel safer, but it's just an illusion. Debit and credit cards come with chargeback protection. EFT does not. If you lose your money via EFT to some scam site it's pretty much gone forever. Paying by debit or credit card is infinitely safer than paying by EFT.

Not true. You can reverse an EFT and debit card doesn't come with scam protection in any case so if you fall for a scam site you're on your own in any case. You may think it's safer yet nobody has had their EFT details stolen yet.