Payments to crypto exchanges blocked from Capitec's app and business web interface

[ld13]

It sounds like more than that

https://guide.luno.com/hc/en-gb/articles/22313178210717-Bank-transfers-from-Capitec-are-not-available

If you read between the lines then this is an instant pay option and not truly Capitec Pay. Note that Stitch is not actually an officially supported channel in SA and charges extra fees as well.

Capitec started blocking eft payments directly to (crypto) exchanges. The exchanges were told to now use capitec pay. The issue is that the exchanges had to contend with extra fees, and at a minimum it was a 0.55%-0.70% commission whereas to receive an EFT was free. This was crazy and the industry revolted. Capitec saw the error in their ways and very generously (/s) capped the commission to R7 per transaction.

Stitch's instant pay option uses Capitec Pay outright from what I can tell


Yes the exchanges end up paying that R7 fee as well as some stitch fee, while it used to cost them R0. Capitec maintains that it is for security reasons as they can now trigger a face scan for these risky payments.

 

[neoprema]

This was my guess too.

We've often seen Capitec accounts used as the exit point for a scam.

FNB and Standard Bank accounts too, but Capitec has had most success in the lower-income demographic that scammers target with a sob story and a fee to use their bank account under some false pretence.

With intensified surveillance between banks and cash withdrawals being inconvenient, perhaps criminals were using crypto exchanges as a way to get their ill-gotten gains out of their patsy's bank account.

The crux here will be then - can I phone Capitec call center and say I have a legitimate reason to transfer to X exchange can you approve the Auth. If, like Nedbank, they refuse to authorized any crypto or digital bank loads it’s more likely that they have blocked it for perceived “forex” bypass restrictions. That’s what my banker and Nedbank told me. That it presents a risk because I can move ZAR into other currencies using Crypto as the transfer mechanism and it bypasses forex controls.

 

[Swa]

Capitec started blocking eft payments directly to (crypto) exchanges. The exchanges were told to now use capitec pay. The issue is that the exchanges had to contend with extra fees, and at a minimum it was a 0.55%-0.70% commission whereas to receive an EFT was free. This was crazy and the industry revolted. Capitec saw the error in their ways and very generously (/s) capped the commission to R7 per transaction.

Stitch's instant pay option uses Capitec Pay outright from what I can tell
View attachment 1827135

Yes the exchanges end up paying that R7 fee as well as some stitch fee, while it used to cost them R0. Capitec maintains that it is for security reasons as they can now trigger a face scan for these risky payments.

Ok I haven't tested it myself.