International payments

Sending or receiving international payments as a South African doesn't need to be intimidating or time-consuming. When making an international payment instruction as a citizen of South Africa with a local bank account, here are some important things to know.

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Sending money overseas from South Africa

Sending money overseas has become simple and convenient with the availability of digital banking channels. All major banks in South Africa offer online and mobile banking services, enabling you to make international payments effortlessly from your computer or mobile phone.

couple making international payment on a laptop

Forex

Beneficiary bank details

Cross-border reporting

Include a SWIFT or BIC code

Exchange control regulations

Forex

As your payment may involve currency conversion, you must understand the exchange rate and any associated fees or charges for converting your South African Rand (ZAR) into a foreign currency.

Beneficiary bank details

You need to give accurate and complete information about the beneficiary’s bank . This includes their full name, address, and bank account details.
Double-check the details to avoid any errors that could delay or misdirect the payment.

Cross-border reporting

You need to say the purpose of your international payment (eg business transaction, personal remittance, payment for goods/services) by completing a Balance of Payments (BoP) report.
The BoP code is an electronic system for banks to report cross-border transactions to the South African Reserve Bank.

Include a SWIFT or BIC code

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) makes the transfer of funds and information across borders possible.
The SWFT code is a standardised format for transmitting messages related to payment instructions, securities transactions and other financial transactions between banks across the world.
Sometimes the SWIFT code is also called the Bank Identifier Code (BIC). Both the SWIFT or BIC codes are typically 8 or 11 characters long.
This is an important code for most international payments.

Exchange control regulations

You must follow any applicable regulations or restrictions related to international payments to ensure that your payment complies with these regulations.
Keep in mind, it is always advisable to consult with your bank for guidance when making international money transfers.

Receiving money from overseas

When receiving money from overseas as a South African citizen and bank account holder, it is vital you comply with applicable regulations, including providing accurate information and documentation to your bank about the sources of funds and the reason for the payment. Always speak to your bank if you have any queries or concerns.

Lady working on her tablet in an office space

South Africa strictly regulates exchange control are there are restrictions on the flow of money in and out of our country. It is important to be aware of these regulations and any limits or requirements that may apply when receiving money from overseas. Keep in mind, you may need to provide certain documentation or information to your bank to comply with the payment process.

Tax impact

Transaction fee

Tax impact

International transactions may have tax implications.
In some cases, you may need to declare and pay taxes on the money received. It is advisable to consult with a tax professional or contact the South African Revenue Service for guidance on your specific situation.

Transaction fee

When receiving money from overseas, there may be exchange rates and fees involved in the transaction.
Keep in mind, individual banks will often apply their own exchange rates, which may differ from the market rates.

Frequently asked questions

How long does it take for an international payment to clear?

International payments seldom happen in real-time and usually take one to five business days to clear through.

The time it takes for international payments to clear depends on the intermediary or receiving bank banks, converting the currency and the money transfer method you select.
What are the bank charges for international payments?

The transaction fees will vary from bank to bank.
Can I use my Single Discretionary Allowance towards an international payment?

Yes. A Single Discretionary Allowance (SDA) is a monetary limit of ZAR1 million for every calendar year.

The limit is set by the South African Reserve Bank and allows South African residents over the age of 18 to make international payments for certain purposes without needing to obtain specific approval.

It may be used for several purposes, including travel, gifts, donations, studying abroad, investments and medical expenses.

Common Monetary Area and cross-border payment

As of April 2024, South African banks can no longer process domestic electronic funds transfers (EFT) within the Common Monetary Area (CMA), which links South Africa, Namibia, Lesotho and Eswatini into a monetary union.

South African bank account holders cannot make EFT payments to or receive EFT payments from other CMA countries.

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