The African Bank credit card thread

[zerocool2009]

I understand the point, but its invalid. A salary can also stop tomorrow if you get fired or what not.

I know of a client who BS the bank .... and they just asked for an IRP5 (which they also manufactured .... L O L )

The bank gladly showed them the door !

Well, a bus can drive you over tomorrow ! S h i t happens I suppose hey.

 

[Zulfi]

So wait now.. this manufactured spend with th AB NA, is sars gonna bust our a$$ for it?

 

[HavocXphere]

I don't think they mind. It makes no difference to them whether it's real spend or artificial - they earn the same whether I swipe to buy a car for R50k or to deposit it in a notice account.

I don't think you understand how any of this works. Banks don't earn from this - it's loss making for them. They accept the loss since it translates to loyalty, hence the name loyalty program. Manufactured spending increases their expenses without a corresponding incremental loyalty boost.

That's why most of the major card companies close accounts for heavy manufactured spending.

Not saying don't do it...just pointing out that the banks take a dim view of this.

 

[MB00]

So wait now.. this manufactured spend with th AB NA, is sars gonna bust our a$$ for it?

I've been through SARS verification for the past 3 years... So I'm keeping all receipts related to the manufactured spend (take a pic, auto upload to Google photos), just in case I need to prove that this is not additional income etc.

 

[cr@zydude]

I'm not seeing much of a point unless the R68pm fee buys me a large life insurance policy. Is the charge to deposit only for cash? I'd consider it crazy to be charge for paying my bill via eft.

 

[silkenphoenixx]

You guys do realise that they'll catch on to manufactured spending right?

I have wondered about this. Don't engage in any manufactured spending myself (though I have rearranged some of my usual transactions to go through my CC instead of EFTs), but I wonder how big a problem it is for FNB.

How many people regularly post on these threads? Two or three dozen perhaps? Perhaps we can be optimistic and assume that there are about 10x more lurkers who never post. Two or three hundred people aren't going to break FNB.

They probably make more money from people who are now on their products instead of say Standard Bank or Absa because of eBucks, than they lose because of artificial spend.

 

[silkenphoenixx]

Actually know of people that got upgraded to pw because of extra deposits without irp5

I have never been asked for an IRP5 by a bank

Me neither - they gave me Premier purely on the basis of my regular salary deposits.

Don't think SARS will be an issue - you sign up with all your FICA documents when you open the AB account, either CC or ND, and transferring money around in your own savings accounts isn't taxable.

Just make sure that you do keep your statements.

 

[Speedster]

I don't think you understand how any of this works. Banks don't earn from this - it's loss making for them. They accept the loss since it translates to loyalty, hence the name loyalty program. Manufactured spending increases their expenses without a corresponding incremental loyalty boost.

That's why most of the major card companies close accounts for heavy manufactured spending.

Not saying don't do it...just pointing out that the banks take a dim view of this.

And R50 000 spent at Pick 'n Pay (or wherever) has a greater effect on my loyalty than R50 000 spent at African Bank how?

 

[Zulfi]

And R50 000 spent at Pick 'n Pay (or wherever) has a greater effect on my loyalty than R50 000 spent at African Bank how?

This is a good question..

 

[Zulfi]

I've been through SARS verification for the past 3 years... So I'm keeping all receipts related to the manufactured spend (take a pic, auto upload to Google photos), just in case I need to prove that this is not additional income etc.

Would it matter to SARS? That its manufactured spend?

So when you go to AB to swipe for Notice deposit, you keep the slip. Then when you call in to pay out to your FNB acc.. how do you record that?

 

[silkenphoenixx]

Would it matter to SARS? That its manufactured spend?

So when you go to AB to swipe for Notice deposit, you keep the slip. Then when you call in to pay out to your FNB acc.. how do you record that?

You'll get a statement both from AB and FNB. You can show that the references match up. They're both your accounts.

 

[Zulfi]

You'll get a statement both from AB and FNB. You can show that the references match up. They're both your accounts.

I dont get it.. are you saying taking pictures and **** are not necessary? Coz for example, i slide 25k over 5 days to wife's account, she pays out to HER fnb acc.. then EFT back to me.. doni need to take pics and screenshots o the transactions?

 

[silkenphoenixx]

I dont get it.. are you saying taking pictures and **** are not necessary? Coz for example, i slide 25k over 5 days to wife's account, she pays out to HER fnb acc.. then EFT back to me.. doni need to take pics and screenshots o the transactions?

Don't think so.

On her statement it'll say "EFT to Hubby", and on your statement it'll say "EFT from Wifey". It's not counted as taxable income, and as mentioned before, spouses can "donate" money to each other with no limits without tax.

It won't cost you anything and won't hurt to keep the documentation for a few years though.

 

[Zulfi]

Don't think so.

On her statement it'll say "EFT to Hubby", and on your statement it'll say "EFT from Wifey". It's not counted as taxable income, and as mentioned before, spouses can "donate" money to each other with no limits without tax.

It won't cost you anything and won't hurt to keep the documentation for a few years though.

Ok thanks.. so i dont nee no screenshots and selfies?

 

[MB00]

Would it matter to SARS? That its manufactured spend?

So when you go to AB to swipe for Notice deposit, you keep the slip. Then when you call in to pay out to your FNB acc.. how do you record that?

No, the spend shouldn't matter to SARS at all, just that their systems might detect our transfers incorrectly.

I assume that FNB and AB are required to provide information about customers to SARS as normal, and I also assume that income over certain thresholds triggers questions from SARS, which the taxpayer would have to answer.

If I withdraw 50k from AB to FNB every month, or 600k every year, I think that this might trigger such questions.

My wife was verified by SARS last year and had to prove and justify a pension preservation transfer which never even touched her bank account, so I don't think my assumptions are too far fetched.

Taking 10 PnP photos a month showing WCW is tedious, but 1 ABNA receipt photo a month is straight forward. Everything else is on emailed statements so that's no problem.

Using the bank reference with Hubby and Wifey etc is a good tip as well, thanks.

Of course none off this might actually be necessary, we aren't doing anything against SARS or banks rules that I can see, but better to be safe than sorry.

 

[beefymoocow]

Guys are looking at this the wrong way. SARS will frown on these transfer but most of transactions will have a net nil affect. The aspect SARS could tax you is the Ebucks gain from checkers and etc. normally they don't care if you earn Ebucks coincidently when using your card. But shifting money to inflate spend is going above normality and could be seen as a income producing activity which SARS Could tax. It's a grey area in tax but even if you don't get taxed. You will probably still get audited which is a schelp.

 

[Zulfi]

No, the spend shouldn't matter to SARS at all, just that their systems might detect our transfers incorrectly.

I assume that FNB and AB are required to provide information about customers to SARS as normal, and I also assume that income over certain thresholds triggers questions from SARS, which the taxpayer would have to answer.

If I withdraw 50k from AB to FNB every month, or 600k every year, I think that this might trigger such questions.

My wife was verified by SARS last year and had to prove and justify a pension preservation transfer which never even touched her bank account, so I don't think my assumptions are too far fetched.

Taking 10 PnP photos a month showing WCW is tedious, but 1 ABNA receipt photo a month is straight forward. Everything else is on emailed statements so that's no problem.

Using the bank reference with Hubby and Wifey etc is a good tip as well, thanks.

Of course none off this might actually be necessary, we aren't doing anything against SARS or banks rules that I can see, but better to be safe than sorry.

Yeah i think im gonna move away from the wechat thing to increase spend... The ABNA seems a better choice

 

[MB00]

Has anyone managed to use their ABCC to buy online? Some branches say it's possible, others not, when I tried ordering online today it didn't work. It's a visa card so I don't see why it wouldn't work.

 

[Tinuva]

Has anyone managed to use their ABCC to buy online? Some branches say it's possible, others not, when I tried ordering online today it didn't work. It's a visa card so I don't see why it wouldn't work.

I used it online with payfast for black Friday special without an issue

 

[Speedster]

Has anyone managed to use their ABCC to buy online? Some branches say it's possible, others not, when I tried ordering online today it didn't work. It's a visa card so I don't see why it wouldn't work.

Used mine a couple of times too