Lower cost method to receive overseas payment.

[AgentSmithZA]

Hi there,
I have a business, and starting next week I will only have 1 client - a international one.
The client will pay me a salary, twice a month.

If I get paid via PayPal and then withdraw to my FNB business account - My calculations show I may be loosing about R2000.00 just in transaction fee's?

Is there not a better way to do this?

Thanks
Webyep

 

[Speedster]

Hi there,
I have a business, and starting next week I will only have 1 client - a international one.
The client will pay me a salary, twice a month.

If I get paid via PayPal and then withdraw to my FNB business account - My calculations show I may be loosing about R2000.00 just in transaction fee's?

Is there not a better way to do this?

Thanks
Webyep

Direct transfer to your bank account?

 

[SaiyanZ]

I think there is a fixed fee of about R100 for direct transfer with most banks. Paypal is only useful for receiving small amounts around R3000 or less.

 

[NomNom]

Western Union charges nothing.

 

[ChilliGirl]

Let them transfer directly to your account. You might wait 3-5 days for it to reflect but then it won't cost you anything.

Be warned that the bank could tax you... I am not to sure about how much, why .....

The last time my mom sent me money as a gift i answered it was a gift. The lady then said ok there will be no charges.

PS . I got a call to confirm that I was expecting the money by someone in my bank's forex department.

 

[chrisc]

Different banks have different fees, but there are always fees. Even when you remit money overseas. My daughter had to pay HSBC £14.50 to receive the equivalent of £920.00. They said it was a "minimum transaction fee".

 

[ld13]

Have a look at Skrill/Moneybookers, Direct SWIFT Transfer, Western Union ... Will all depends on the Amount(s) being transferred.

 

[ABU]

Whichever method you use from those above, you are going to get charged quite a bit.
Whether it is called a "transaction fee", "commission" or worked into the exchange rate, you aren't going to get anything close to the market rate for the Dollar (or whatever currency you are getting paid in).

Here are some of your options:
1- Paypal:
You get hit with a transaction fee, unless the sender pays the entire amount.
Then, if the sender is sending anything but dollars, you get charged a commission when converting it to USD.
Then FNB hits you with their inflated exchange rate when converting to Rands.There rate right now is R8.04 compared to mid-market rate of R8.20
Thereafter you get charged commission of 1.5%.
So, if someone sends you $1000 (R8200), Paypal will probably take $40, leaving you with R7600 after FNB takes its share.
So the total cost is around R600 to receive $1000.

2- Western Union
While they claim not to charge anything on this side, their exchange rates are terrible!
It is typically 55c less per dollar than market rate. So for $1000, you would get R7650, effectively charging you R550 per $1000.

3- Moneygram
No charges on this side, their exchange rate is better than Western Union, normally around 30c-35c less than the market rate for the USD. The sender normally pays a bit more than with Western Union though.

4- Bank Transfer
Fee of around R100 plus the bank uses their own exchange rate. Enquire from them what rate they would use.