International bank transfers from South Africa can cost R870 – This is why

Bradley Prior

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International bank transfers from South Africa can cost R870 – This is why

If you have ever sent money overseas, you will know that it can be an expensive endeavour and can take a considerable amount of time.

While it can be frustrating to wait over two days for an international payment to go through or to pay transaction fees on small amounts, there are reasons that these charges and wait times exist – according to banks.
 

eg2505

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SARS wants gravy, and Zuma wants more wives.

why is anything expensive in SA anyway, Taxes to pay for all those blue light convoys, for the minister of pencil sharpeners.
 

HOLY MAnIAC

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I have made multiple international payments over the last year (over 10) and have payed less than R10 in fees and payment never took longer than 20 minutes.

This is all thanks to Bitcoin, I made 1 payment using Absa last year and payed over 100 000 times the fee's (not an exaggeration).
 

Aragon

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I have made multiple international payments over the last year (over 10) and have payed less than R10 in fees and payment never took longer than 20 minutes.

This is all thanks to Bitcoin, I made 1 payment using Absa last year and payed over 100 000 times the fee's (not an exaggeration).
What were your rates of currency exchange?

Every time I investigate the possibility of using Bitcoin or similar, the forex rates offered by the banks are at least 2-3% better than the rate of exchange offered by ZA crypto exchanges. Those few percent make a very big difference to large transfers.

eg. going ZAR -> USD/EUR with the banks is cheaper than ZAR -> BTC -> USD/EUR
 

LCBXX

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Use cryptocurrency to move money, people! And no, you are not restricted to only Bitcoin.
 

lenosb

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I transfer money regularly from the UK to SA online, and regardless of the amount I send it costs a flat fee of £10.00 (around R170.00)...so I take it that my bank must be special and does not incur the additional fees that SA banks do? :confused:
 

hj007

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What are the spreads on these banks, all of them charge 1-2% spread which you need to take into account.
I've enjoyed alternatives such as E4F which has been c.1% spread.
Crypto? hopefully one day it will be a more viable option, for now it's still too high a spread, but I like the wallet idea. My best solution at the moment has been to make the conversion into an offshore bank account (local banks, Shyft etc) and keep the $/GBP in that account until payments
 

Praemon

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What were your rates of currency exchange?

Every time I investigate the possibility of using Bitcoin or similar, the forex rates offered by the banks are at least 2-3% better than the rate of exchange offered by ZA crypto exchanges. Those few percent make a very big difference to large transfers.

eg. going ZAR -> USD/EUR with the banks is cheaper than ZAR -> BTC -> USD/EUR
Yeah, also looked into this - crypto currencies are far more expensive than doing a normal SWIFT transfer due to the volatility and poor buy/sell rates. You'll end up paying way more going that route. I think the only real answer with crypto-currencies is something like Ripple where it's used as a medium for tracking rather than anything else.
 

lotus123

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Simpler and cheaper by far to hook up (if you can) with family and friends working and living in the UK , who also want to send money home to family. Whatsapp group is useful for this.

Did this twice last year, and we split the Forex difference. My EFT goes to their local account, and they EFT in GBP to whoever I want to pay. Done in minutes, and cheaply.
 

HOLY MAnIAC

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What were your rates of currency exchange?

Every time I investigate the possibility of using Bitcoin or similar, the forex rates offered by the banks are at least 2-3% better than the rate of exchange offered by ZA crypto exchanges. Those few percent make a very big difference to large transfers.

eg. going ZAR -> USD/EUR with the banks is cheaper than ZAR -> BTC -> USD/EUR
I actually didn't take this into account, although in my case I was not purchasing Bitcoin for the purpose of transferring it (I already owned the Bitcoin)... I needed to make some transfers and I chose to send it from my Bitcoin wallet as it would be faster and I assumed cheaper.

The inflated price of Bitcoin(lack of liquidity) should be taken into consideration when choosing, hopefully our prices can reach an equilibrium with international exchanges soon.

The issue of speed, however is still in Bitcoin's favor.
 

SaiyanZ

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Use cryptocurrency to move money, people! And no, you are not restricted to only Bitcoin.
Yeah sending crypto is a lot cheaper than this. Think it cost me around R8 to send 10BTC last year from Luno to Bitmex and it was transferred in a few hours.

Though I'm just working with BTC and not converting to USD or Rands (yet).
 
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