South Africans should say goodbye to cash

Unless you have something to hide, why bother with cash? It's just a pain in the ass to go to ATMs, carry cash, deal with change shrapnel etc.

The only advantage is for hiding its use.
 
TedLasso said:
Yup, sadly the informal sector uses it exclusively sometimes not by choice , i.e. high banking fees! Let's not forget the illegals who can't open themselves. (Applies to Europe too)

Perhaps they should mandate all banks to have a free tier of banking. The banks will make enough out of fees related to card use on high Street etc. Then legal South africans, can bank and perhaps the win is more traceability into flows.

They so need to kill Interbank payment fees. I am already forced to pay monthly for my bank account and then they still charge more?

Ridiculous then that interbank payments don't work on weekends, etc. Yet every other country , it's not a problem. Weekends and public holidays are just normal days in their banking systems.

I love my bank accounts in Europe and elsewhere that have no monthly banking fee. I mean I can upgrade to one, with more benefits like insurance, rewards , etc but why???
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Its not price.

80-85% of adults in the county have bank accounts. So it isn't access to them.
https://www.resbank.co.za/content/d...eepen-financial-inclusion-in-south-africa.pdf


Bank Zero is as close to free as possible. There are a couple of once off fees like getting the card, but that is it. I would wager I pay less on Bank Zero than someone using cash because I don't withdraw or deposit any cash (which I will explain in a moment). Using my card doesn't cost me any money, neither does Apple Pay. The biggest expense I have had with Bank Zero is I needed to pull some bank statements (because I am a clever person and deleted the ones they emailed me), and that cost a few ront.



There are other factors
1) The shops in the informal sector don't want their cash based business going through the banking system. Because then SARS's automatic systems are going to flag them.
2) If you have money in the bank, then your debt orders can go off and deduct it. Therefore the smart people go and withdraw their salaries/social grants/sugardaddy payment/child support/alimony in cash at an ATM the moment they get it.
3) Free Instant payments are not ubiquitous, despite the aptly named payshap.

If you wanted to get rid of cash, simply tax cash withdrawals and cash deposits above a certain amount every month.
 
konfab said:
Its not price.

80-85% of adults in the county have bank accounts. So it isn't access to them.
https://www.resbank.co.za/content/d...eepen-financial-inclusion-in-south-africa.pdf


Bank Zero is as close to free as possible. There are a couple of once off fees like getting the card, but that is it. I would wager I pay less on Bank Zero than someone using cash because I don't withdraw or deposit any cash (which I will explain in a moment). Using my card doesn't cost me any money, neither does Apple Pay. The biggest expense I have had with Bank Zero is I needed to pull some bank statements (because I am a clever person and deleted the ones they emailed me), and that cost a few ront.



There are other factors
1) The shops in the informal sector don't want their cash based business going through the banking system. Because then SARS's automatic systems are going to flag them.
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Good on them
konfab said:
2) If you have money in the bank, then your debt orders can go off and deduct it. Therefore the smart people go and withdraw their salaries/social grants/sugardaddy payment/child support/alimony in cash at an ATM the moment they get it.
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Yes, this is a real concern for people living hand to mouth existences - they should be free to do so.
konfab said:
3) Free Instant payments are not ubiquitous, despite the aptly named payshap.

If you wanted to get rid of cash, simply tax cash withdrawals and cash deposits above a certain amount every month.
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Please god no - the last thing we need is more tax.

The main thing is, if you get paid for something in cash, you should then be free to spend that cash again without being forced to put it into the bank.

Also, this whole nonsense of needing to report transacation above a certain amount, even in private transactions is nothing more than government overeach - just like our reserve banks obsession with exchange control.
 
MoHaG said:
Insurance companies seems to be demanding bank statements to process claims... That does not tell them if I spent R300 on tequila shots or Heineken 0.0 at the bar, they just see bar, likely drink, reject the claim...
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That's hideous. Unless confirmed as being over the limit that should absolutely not be allowed to happen.
 
MoHaG said:
Insurance companies seems to be demanding bank statements to process claims... That does not tell them if I spent R300 on tequila shots or Heineken 0.0 at the bar, they just see bar, likely drink, reject the claim...
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A guy at work got nailed like that.
 
ISP cash cow said:
is that discovery insure?
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I'm not sure which ones does it, if everything is at one company, they likely have the data already though.

(There is some indirect media coverage, a case (that was lost, but it was one component) and a few JustAnswer questions)

The ombud also indicated that it might be considered.

So, especially if you drink non-alcoholic drinks, consider paying cash at places selling alcohol an avoiding places that doesn't accept cash.
 
MoHaG said:
Insurance companies seems to be demanding bank statements to process claims... That does not tell them if I spent R300 on tequila shots or Heineken 0.0 at the bar, they just see bar, likely drink, reject the claim...
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LOL.

As manager you treat your staff for the standard annual Christmas lunch, which would obviously include a drink each, and pay per your debit card (HQ will settle amount within 24 hours of submitting). You, however, choose a bottle of Appletiser to accompany your meal ...

Assumption is the mother of all F-ups.
 
Zellephant said:
Yes, this is a real concern for people living hand to mouth existences - they should be free to do so.
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It doesn't help them. Eventually the garnishee orders come in and they pay anyway, with additional costs.

Zellephant said:
Please god no - the last thing we need is more tax.
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Tell you what, I will trade capital gains tax for this.

No taxes on inflation and economic growth, and rather taxes on using cash.


Zellephant said:
Also, this whole nonsense of needing to report transacation above a certain amount, even in private transactions is nothing more than government overeach - just like our reserve banks obsession with exchange control.
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This is how you protect against money laundering. And the reality for you is that it will never go away as it is likely an international requirement.
 
Lupus said:
A guy at work got nailed like that.
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Surely that should be fightable with the Ombudsman though.

I mean hell I know that my local runs a tab under my name, and I'd expect their POS system would keep those records for a while. Should be easy enough to prove the insurance company is overstepping massively at that point.
 
ToxicBunny said:
Surely that should be fightable with the Ombudsman though.

I mean hell I know that my local runs a tab under my name, and I'd expect their POS system would keep those records for a while. Should be easy enough to prove the insurance company is overstepping massively at that point.
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In his case, it would've just proved their point to be honest. If it happened to me, who's been a teetotaller for almost 6 years now, I would fight it, as I literally have coffee, milkshake or a cool drink, even at a pub.
 
Lupus said:
In his case, it would've just proved their point to be honest. If it happened to me, who's been a teetotaller for almost 6 years now, I would fight it, as I literally have coffee, milkshake or a cool drink, even at a pub.
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Ahhh ok, so he was having a few toots, then yeah kinda got what he deserved. Though I'm still a bit unsure about an insurance company repudiating a claim on you "might be over the limit" rather than actually being over the limit.
 
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