EFT is basically an electronic check which uses the same financial network as ATM transactions.

When you use EFT, you authorize a company to send an electronic notice to your bank authorizing them to send a payment to the companys bank. These transfers are made across the Automated Clearing House (ACH), a financial network run by the Federal Reserve that acts as a clearing house for electronic debit and credit transactions.

Back to top

All you need is a valid checking or savings account. You will be required to give your bank account number and routing number found on the bottom of your check. Certain poker rooms will only accept bank accounts based in the United States.

Back to top

The first time you use EFT you must give the poker room the same information available on a paper check: Your banks name, your bank account number, and your banks routing number.

Next, the poker room will verify your identity through one of three ways:

1. Initial Deposits. The poker room will make two small deposits into your bank account. Once you receive the deposits, you must contact the poker room and tell them the amount of the deposits. This process usually takes two to three business days.
2. A voided check. You can fax or email a photocopy of a voided check to the poker room. This process usually takes less than 15 minutes.
3. Security Questions. The poker room may ask you a few security questions such as your birth date or place of birth. This process usually takes less than 15 minutes.

We recommend you verify your identity through the initial deposits method, because it reveals the least amount of personal information. Emailing or faxing a voided check is the least secure method of verification, as many email servers and phone lines are not secured.

You only have to go through thi setup process the first time you use EFT with a particular poker room. You do not have to enter this information every time. Once set up, all you have to do is enter the amount you want to deposit or withdraw from the poker room.

Back to top

EFT requires you to share your bank account and routing number with the poker room. In the wrong hands, this information can be used to withdraw money from your bank account without your consent. Therefore, security experts recommend that you only share your bank account information with trusted merchants.

EFT is a safe process if you take the necessary precautions. Only use EFT with trustworthy and financially stable poker rooms. Before sending your personal information over the internet, make sure the website you are dealing with secures transactions with 128-bit encryption technology. More specifically, look for websites carrying security seals of Thawte or Verisign, two of the worlds top security firms.

Despite its drawbacks, EFT is still much safer than writing a paper check. All paper checks display your bank account number and routing number at the bottom. Anyone who sees your checksyour landlord, a store clerk, your mailman, etccan steal this information. EFT, on the other hand, transfers your bank information through encrypted electronic transmissions. Therefore, your account information has less chance of being intercepted by third parties.

Back to top

There are several ways you can increase the safety of your EFT transactions.

1. Never give poker rooms your bank account number over the phone or email. You should only submit your banking information through a poker rooms secured website.
2. Review your bank statements every month to see if there are any suspicious account activities.
3. Record all your EFT transactions in your checkbook.
4. Set up a separate bank account specifically for your poker transactions. In case anything happens, your main bank account will not be affected. Having a separate bank account also help you keep track of your wins and losses.

Back to top

If you see suspicious debits from your bank account, contact your bank immediately. Under federal law, your liability for fraudulent EFT transfer is capped at $50 if you report it within two business days of receiving the first bank statement showing the unauthorized transfer. If you report it within 60 days, your liability is capped at $500. Beyond 60 days, you "risk losing all the money in your account and the unused portion of your maximum line of credit for overdrafts." (Source: Federal Trade Commission)

You can notify banks in person, by telephone, or in writing -- the notice is considered given, even if bank employees don't acknowledge receipt of it. A certified letter is probably the best bet; that way you have a copy in case the bank challenges you on the issue of timely notification.

Banks must investigate disputed charges within 10 days, and report results to the consumer within three days. Errors must be fixed within one day. If the investigation cannot be completed within 10 days, banks must issue a provisional credit to the consumer for the disputed amount, less $50. (Source: MSNBC)

Back to top

All EFT transactions are regulated by the Federal Trade Commission and the Federal Reserve Bank. EFT transactions are covered by the Electronic Funds Transfer Act of 1978, which set out the rights and obligations of consumers regarding the use of electronic fund transfers. This act is implemented through the Federal Reserve Bank's Regulation E.

According to the US Treasury, "EFT is safe, secure, efficient, and less expensive than paper check payments and collections."

Back to top

Yes. The EFT transaction will show up on the account statement you receive from your financial institution. However, the transfer may be in a different place on your statement than the place where your checks normally appear. For example, it may appear under other withdrawals or other transactions. You will not receive your original check back from your financial institution.

Back to top