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Updated 15.08.2021

Best Ways to Receive Money From Overseas in South Africa

Receiving money from overseas in South Africa is now easier because of the many options available to people. An individual can decide to use a bank account or a private company for international transfers. You can also opt for online transfer services.

However, choosing the right option and form of receiving money from overseas in South Africa may depend on the frequency with which an individual receives international remittances. The amount involved, and how quickly you want to have access to the funds. Understanding these factors will help you decide which method of receiving money from overseas suits your needs best. The following are a few options you can use to receive money from overseas in South Africa.

Private Companies as Receiving Option for Money From Overseas in South Africa

Using a private company is another option through which one can receive international remittance payments from overseas. Private firms provide service and handle payments through various channels, such as:

  • ATM cards
  • Online
  • Telegraphic services

Private money transfer companies are helpful, especially for people who receive large sums of money regularly. However, the services offered by private companies often involve more administrative charges compared to bank-to-bank transfers.

Besides, some private money transfer companies operating within South Africa may not have offices in all countries from which an individual can receive payments. Some of the best private companies include:

Bank of Africa

This is the bank I used to receive my first transfer to South Africa. Once you’ve opened a bank account with them, deposit an initial amount of R5 000, which will get refunded back in two days. They also ask for proof of income certificate (after 24 hours).

Johnson Trading & Investments CC (PTY) LTD

They offer a free R3 000 monthly account with a withdrawal maximum of R4000 per month from their bank account. The company charges no fees for withdrawals or deposits. They allow you to view your balance online via internet banking. That is once they approve you as their new client. This account will allow you to receive money from anywhere around the globe. They also boast a free western union account and no fees. For withdrawals, you can also withdraw a maximum of R4000 per month from your account.

Bosie Finance CC (PTY) LTD

Same as Johnson trading in, they offer R3 000 monthly account fees for withdrawals or deposits. You can also view your balance online via internet banking once approved by them on the phone as a new client. This account will allow you to receive money from anywhere around the globe. They also boast a free western union account and no fees for withdrawals. You can also withdraw a maximum of R4000 per month from your account.

CFS Finance & Investments CC (PTY) LTD

The company offers R3 000 monthly accounts, fees for withdrawals or deposits. They allow you to view your balance online via internet banking once approved by them on the phone as a new client. The company also has a free western union account and no fees. For withdrawals, you can also withdraw a maximum of R4000 per month from your account.

Benefits of Using These Companies

By receiving money in a Private Company as an owner, only the company can pay taxes on that profit. This means that they do not tax you if you have a private company receiving your funds from overseas. Apart from receiving all profits of the company tax-free, there are other benefits as well:

  • You get a great business address (your residential area or office) next to your name and home phone number
  • You can use it for writing contracts and signing forms/agreements with partners etc. In this case yours will appear as a real business address rather than just being someone’s address. This is what happens when receiving funds via bank accounts or homes.
  • It looks professional since they register the business in your name. Also, receiving funds from overseas via a Private Company gives others the perception that you are successful and doing well.
  • You will add or use it as an extra company on your website if you have one (great for showing off)
  • Your CIPC annual returns are free each year

Internet-Based Money Transfer Services as a Money Receiving Option from Overseas in South Africa

Internet-based money transfer services are increasingly popular because of their usefulness and convenience. These online services offer individuals a convenient way to receive funds from overseas using internet devices such as computers and smartphones. They transfer overseas payments to a recipient’s beneficiary on a real-time basis of e-banking and mobile phone channels.

Internet-based service providers offer similar services for international money transfers. These companies have the advantage of going beyond borders. Hence allowing individuals to receive payments at any location in South Africa. The funds received can get deposited into bank accounts or sent directly to beneficiaries. But this depends on your preference. These Internet-based service providers also allow users to transfer funds from one country to another within minutes. However, some Internet-based money transfer service providers charge high fees and commissions for all transactions. Here are some Internet-based money transfers in South Africa.

Western Union

Western Union has many branches in South Africa. It boasts regulations by the South African Reserve Bank. The sender can go into any branch or use an agent to fill out some forms, get the receiver’s “cash pickup code,” and send money online via their website.

After 3 hours, the money will be available for pickup at any Western Union branch. The fees charged range from 5% for amounts below $50 to $5 over that amount. Contact them on 0861 000 24 or check their website for more details.

FNB Money Transfer

FNB Money transfer is a service offered by First National Bank in South Africa. It is only available to bank customers over 18. It allows you to receive money from overseas into your FNB account. The sender also needs to be an FNB customer and can transfer money online or at any branch. Fees charged are R11 for amounts below ZAR 1000 and ZAR 24 for those above that amount (the fee increases with larger sums). Once the receiver has registered, you receive a “receipt number.” The bank needs the receipt number to provide to the sender for the transaction to end successfully.

Co-operative Bank of South Africa

Co-operative Bank of South Africa also allows you to receive money from overseas into your bank account. The recipient can open a “global account” or transfer money from any other Co-op Bank account. Fees charged are 5% for amounts below ZAR 500 and 2,5% for sums above that amount (contact them at 0861 555 555 or check their website for more details).

Money2anywhere

Money2anywhere is another online money transfer service for South Africa that allows you to receive money from overseas. The recipient can receive funds into their bank account or use it to buy airtime – or data bundle, depending on the plan you choose.

Money2anywhere offers a range of plans based on the amount you need to receive. As well as placing your order online (there is a sign-up process), brokers in South Africa will take orders over the phone for you. They charge $4 and make a commission of 3.5% on sums below ZAR 1000 and 6% over that amount (contact them on 08600 004 111 or check their website for more. There are no hidden fees to use this service. So, you can receive the money within 3 hours – see the Money2anywhere website for more details.

Cool Cash

Cool Cash is another online money transfer service that allows you to receive funds from overseas into your bank account in South Africa (they do not offer airtime or data bundles). The sender needs to open an account but doesn’t need a bank account, mobile phone, or credit card. You can receive cash into your bank account if you’re over 18 years old or have a parent/guardian who will help you open one for you if you’re under 18. You can also choose to get the money onto a prepaid card. Fees charged are 5% for amounts below ZAR 300 and 2,5% for sums above that amount. See their website for contact details of their brokers who will accept orders over the phone from you. You can also check Coolcash’s website to register and receive more information (there is a “how it works” video with voice-over on how this service functions).

Ria Money Transfer

Ria Money Transfer is another online money transfer service that allows you to receive funds from overseas into your bank account in South Africa. That is if you’re over 18 years old or have a parent/guardian who can help you if you’re under 18. Depending on the plan you chose, you can choose to get the money onto a prepaid card, into your bank account, or onto airtime – or data bundle. Fees charged are 5% for amounts below ZAR 300 and 2,5% for sums above that amount.

Based in South Africa, Ria is part of Euronet Worldwide Group and operates in over 200 countries (see their website for further details). They also offer mobile payment services via their mobile app.

PayPal

PayPal is a well-known online payment service. It’s available in South Africa, and it has over one million active users there! Some fees are favorable for many people to use PayPal when shopping on sites like Amazon or eBay. You can also send up to $10 000 at once without charge. This makes this an ideal way to transfer money quickly. If you have friends with PayPal accounts, too – no waiting around for days while your bank processes things anymore.

Xoom

Xoom can help you transfer money in South Africa to family, friends, or yourself. They are an international service based out of the United States and are a subsidiary company of PayPal. It’s quick because there are no bank account numbers needed. The minimum amount for transfers starts at $10, but any extra fees may apply depending on how much you’re transferring.

Revolut

Revolut South Africa is the new, innovative financial company of your dreams. Unlike most companies out there that require you to have a bank account or set up an exchange rate for conversions before transferring money, Revolut takes care of everything. So you only need to send and receive with no hassle from conversion fees. If one person has a Revulot account, and another does not, but they want to transfer funds back-and-forth between them? No worries. All it’ll take are their phone numbers on either end for the transaction to complete with no problems.

Money Gram

For those looking for a way to quickly and securely send money abroad, MoneyGram is the best option. The service works in over 200 countries worldwide so that you can easily transfer funds no matter where life has taken you. You don’t need an account with FNB or any other bank. It accepts all major credit cards, debit cards, and prepaid services as long as they have activated them through your respective financial institution.

Remitly

It’s no wonder many people choose Remitly for their international money transfers. With reasonable exchange rates, instant transactions, and short processing times, it has become a favorite among those who want to send or receive currency quickly without breaking the bank.

Wise

Wise is a money transfer platform that allows people abroad to send funds for free, quickly and securely. The company relies on Reuters as their currency exchange source. This means you can depend on them when sending your funds abroad. You instantly receive funds in the recipient’s bank account with no extra fees unless they choose to opt-in with one of Wise’s other services, including an additional fee or more security features such as phone verification before receiving payments.

XE

Xe is now making some serious waves in the world of foreign exchange. The company has a competitive rate. It also allows users to send money from 130 countries worldwide. One can even send funds straight into a recipient’s account. This means no more waiting for cash pickups or worrying about sending too much at once.

OFX

OFX is a money transfer company that can send you from the US to South Africa. Unlike other companies, OFX only has a $1000 minimum amount for sending funds abroad. This makes it more affordable than most services and even cheaper if you’re planning on transferring large sums of cash. And best yet? There are no fees when using this service.

Venmo

Venmo is one of the most popular payment options for mobile devices worldwide. It’s a PayPal-owned company that offers many features similar to its parent. It even has some exclusive ones. You can use Venmo anywhere in South Africa with an internet connection. This makes receiving money from friends or family.

Venmo boasts a beautiful and simple design to use – so much so that you’ll forget about cash altogether once you use this app. If your friend owes you $10 but doesn’t have any money on them at all (which they never do), you can send them a request via their phone number and a boom-done deal complete without ever having to leave home yet again.

Benefits of Using Internet-based Companies as Receiving Option for Money from Overseas

Here are some of the benefits you will enjoy when you send money through these online money transfer companies.

Receive Money from Overseas

Receiving money from overseas is a special service provided by internet-based companies that operate worldwide. Using the Internet to send and receive money in a fast and efficient way. All businesses benefit from receiving transfers via couriers or postal services, but other companies choose to receive options online. This is because it is convenient.

Make Payments Globally

Payments made through us can receive options worldwide without boundaries. Internet-based receiving options reach out to many regions worldwide, thus making it possible to make payments securely over an electronic platform in over 20 countries, including South Africa, Zimbabwe, and Botswana. Availability 24/7 makes it possible to find receiving options online, regardless of the time of day.

Receive Money from All Over the World

Money received from overseas can come in any form, such as cash or electronic fund transfers (EFT). The receiving option will allow you to receive your funds quickly and easily. These receiving options are also useful, whether one is receiving payment for services rendered from outside South Africa.

Using a Beneficiary Bank Account as Receiving Option for Money from Overseas in South Africa

It is possible to receive funds from overseas in South Africa through Beneficiary Bank Accounts. The receiving party can easily open a bank account. The receiving banks will set up an agreement with their counterpart banks in the beneficiary’s country of origin. This includes receiving payments and crediting them into the local account. It involves less hassle than private companies but more than going through international banks.

Beneficiary Bank Account receiving services in South Africa boast services from several banks: Standard Bank, ABSA, Nedbank, FNB, and Capitec Bank.

When receiving money from overseas, there must be no restrictions on receiving direct deposits in your foreign equivalent bank account or credit card accounts. There should also be no fees or charges attached for receiving such transfers. Some banks might take advantage of non-resident foreigners opening accounts with them by:

  • Charging high annual fees
  • Limiting the amount of money one can receive from overseas
  • Limiting the usage of credit cards

Benefits of Receiving Payments Through a BB

Receiving money in South Africa through a beneficiary bank account has several advantages that other receiving methods don’t offer. Some of these advantages include:

Fast and Easy

The receiving party can easily open an account with a beneficiary bank to receive funds from overseas. Once this has been done, the receiving party must provide their counterpart bank with details such as full name, address. The receiving party’s counterpart bank then sets up an agreement with the paying bank’s bank (the sending institution). This allows the receiving institution to receive transfers from the sending institution and transfer these received amounts into the receiving party’s receiving bank account.

Reliable

Receiving money in South Africa is more reliable than receiving it through private companies. The South African Reserve Bank, which means they have to comply with receiving funds backed by beneficiary banks and receiving institutions. Under normal circumstances, receiving payments should be automatic once all details become available to a receiving institution. The receiving institution has set up a beneficiary agreement with the paying institution.

Direct Receipt

Receiving the money from overseas directly into your account in South Africa instead of receiving it from a foreign sender’s bank through an intermediary agent like Western Union or MoneyGram. Getting all the bank interest on this money during the time it stays in transfer before receiving it.

Low Risk

Receiving ZAR to ZAR transfers without exchange rate risks, since beneficiary accounts get linked to South African Rand Accounts. Most other options require you to receive the money in a foreign currency and exchange it back to South African Rand later.

Disadvantages

Some of the disadvantages of using this money transfer method include:

  • Only receiving funds through internet banking
  • Not being able to send funds back overseas
  • Deposits within South Africa must get converts into Rand before they get withdrawn (incl buying airtime)
  • Fees charged for receiving payments from overseas, though this last disadvantage is usually fixed by changing beneficiary banks every once in a while.

The best way to receive money from overseas in South Africa is with a private company like Western Union, an Internet-based money transfer service such as Western Union’ WU Transfer or MoneyGram’s MGI-money transfer, or using a beneficiary bank account. Choosing what type of receiving option for your remittance will depend on the amount you are transferring and where it originated. For example, if you want to send $100 from Boston, MA, USA to Durban KZN, South Africa, you need to use either of these methods listed above that allow up to $500 worth of transfers per transaction.

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