One of the most important aspects of E-commerce today is the ability to receive and make payments online, after all that is what e-commerce is about. But today in South Africa we find ourselves facing challenges in setting up an online business. One of the key challenges is the ability to receive payments from clients or customers outside South Africa online.
From my own personal experiences, I have looked into setting up an online shop which would sell Sports Merchandise. Now being in South Africa, I had to find the best way I could receive payments if I make any sales. Receiving payments from customers in South Africa would be fairly easy as they could do a cash deposit into the businesses bank account or do an electronic transfer. But then people would also want to use their credit cards online to make purchases and I would have to open up a credit card processing facility with my bank to allow the acceptance of online credit card payments. To have this facility, one is looking at an initial setup fee of approximately R1500 and about R100 a month plus a certain percentage of about 2.5% of the value of the transaction. This is relatively steep if one is just starting up a business but I guess we have all gotten accustomed to how high bank fees in South Africa are, so it is not really a surprise.
Now for my International customers, I would definitely need to have the online credit card facility for them in order for them to make payments to me. But a lot of online payments today are being done through a service called PayPal. PayPal is simple to use and thus its popularity. One just has to register for free at their website and setup an account and you are able to receive and make payments online using your PayPal account. Now the catch in using this in South Africa is that you can make payments to other people using your PayPal account in South Africa but you are not allowed to receive any money into the PayPal account if you are in South Africa. Now that really would not help in the case of someone wanting to setup an online business as their key feature would require being able to receive payments from across the world.
I did some research to find out why we are not allowed to receive payments in South Africa and all answers lead to it being a blocking of PayPal receiving in South Africa by SARS (South Africa Revenue Services) – “The Tax man”. The reason SARS is blocking PayPal from receiving in South Africa, is that SARS also wants to get a piece of the money being received when you get paid. If you are using Paypal to receive money, SARS cannot track money coming into our country, and therefore cannot get their share.
This really hampers the development of E-commerce in South Africa. If I were not in South Africa it would be much easier to setup an online business and receive payments online at a very affordable cost through PayPal. Now that I cannot receive payments using PayPal in South Africa, I am forced to incur high monthly costs in having to setup an online credit card processing facility for my online shop.
It is something SARS and the banks should look into in order to promote the growth of E-commerce in South Africa or else we will continue to be left behind by the developing world.
Totally agree!!! Looked into this myself a while ago and I thought that it would have been sorted out by now [particularly as SARS is supposedly making such great changes] - what’s even stranger is that, if I recall correctly, Paypal has some heavyweight SA influence at the top. On one side its another case of the red tape drowning out true business potential here in SA. On the other side - it offers the opportunity for some enterprising soul here to solve this problem!
If memory serves me correct Darren, I do think one of the founders of PayPal is South African. And I agree with you that maybe there is an opportunity for someone out there to come up with an alternative for PayPal in South Africa, maybe one of the banks can come up with something.
Let’s hope PayPal can work in SA soon, it would really help us a lot setup businesses here.
I was hoping for we would be allowed to recieve money at paypal by now but nothing yet. When asked why they give you some bot-like response. It really hinder us South Africans doing business online. I was recommended to use Alertpay and am pretty happy with them so far. Great support,quick responses to quesions,within a day or 2 and human responses. Also whenI withdrew I recieved a check in 2 weeks and cashed it in at Absa forein exchange. pity they charged me about R50 bucks to exchange it but hey,I recieved my money and that is all that matter at the end of the day. Have a look at them at www.alertpay.com.
So I as an Australian resident and SA wife can set up a site with a .co.za postfix (which i have regsitered) and receive payments via Paypal which i do now in other countries…but when we launch our dedciated SA service can get paypal paymenst from SA’s??? Can I publish my rates in Rand and receive in US$? Looks a tad unfair but i will run with that and SARS can’t touch me?
This really is a problem for me as I recently found myself out of a job as a web designer and saw a niche in doing work via the web. I can literally make a killing if I just focussed on overseas work but the no Paypal is oen of the biggest stumbling blocks.
It’s really sad that SARS is so short sighted that they would prevent South Africans from earning a much needed living and bring more money into the country in generally because they’re not willing to explore alternatives.
How about we create a petition with some serious grievances and a make a real case for why PayPal would benefit SA economically?
I honestly have given up on paypal. I mean its been how many years now that people have had this issue for and still nothing. We cant wait indefinably for them to allow SA to receive funds via paypal. What if it never happens? I have some good news though. The payment processor that I am using very happily will soon be allowing me to withdraw funds straight into my bank account. They have implemented it with some European countries and South African is on the “coming soon” list.
Have a look at an e-mail I received from them last week.
I quote”
Introducing Euro Banking!
AlertPay is proud to present Euro Banking. A fast, easy and secure way to deposit into AlertPay, and withdraw from AlertPay to your bank account.
You can now accept payments and send Euros to AlertPay members. Sending to a non-member? Simply send the funds and the recipient opens a free account to accept the money.
The following countries are now able to add their bank accounts to AlertPay.
- Austria - Italy
- Belgium - Netherlands
- Finland - Portugal
- France - Spain
- Ireland
Don’t have a Euro Bank account? You can open up a Euro currency balance with AlertPay, then send and receive money in that currency or transfer to your primary currency to withdraw. The choice is yours.
To add a bank account today:
1. Login to AlertPay.com
2. Select My Profile Tab
3. Setup/View Bank Account
*Coming Soon
- Australia - New Zealand
- Hong Kong - Singapore
- Malaysia - South Africa
PROTECT YOUR ACCOUNT:
* NEVER give your password to anyone, including AlertPay employees.
* Protect yourself against fraudulent websites or emails by opening a new web browser window (e.g. Internet Explorer or
Netscape) and typing in the www.alertpay.com every time you log in to your account.
Thank you for using AlertPay!
The AlertPay Team “
Having had a look at Alert Pay, I think they can give PayPal a run for their money. Let’s hope SARS do not block Alert Pay from working in South Africa.
I agree and second that.
Here is a solution to the problem to receive money from the more than 60 million PayPal members.There is a work around and www.online-e-commerce has the solution how to accept credit cards and PayPal on your website.A international payment gateway has just 2 weeks ago offered to do the PayPal transaction for you,South Africans are welcome,enabling you to have a professional outfit doing your transactions at a small fee.
I’m a South African citizen and have just recently set up an Business account at Paypal. After having gone through the setup process and logging into my account, I found that South Africans are allowed to accept payment, But we cant withdraw the funds. At first I though what is the point of that!
One can however have a PayPal account, accept payment, then transfer/pay the money into an account which accepts payment from PayPal - such as 2Checkout.com.
Naturally the the fees will be exhorbitant as one has two payment gateway to pay.
Well, I’ve got a Paypal corporate account, and I don’t even have the “Merchant” tab which allows one to create pay buttons! So how do you get that right, Melanie?
It’s really crappy that Alertpay can only send a check - big bank charges! We’re in the 21st century for heaven’s sake - who does business like that anymore?!
For what it’s worth, I agree too - SARS is FULL OF IT! Everybody keeps talking about economic growth etc, but they want to control everything as well! They need to choose: capitalism or communism, but you can’t have both! It’s like wanting hot water, but it must be cold! WTF?!
Anyway, I guess that’s enough bitching, we’ll just have to pay the crazy fees (be it for cheque processing through Alertpay, or Bank Merchant Account!)
Unless anybody is willing to brave the red tape, and take it to somebody with some connections that can look at setting up the FIRST “paypal-type” facility for South Africa, and corner the ENTIRE market immediately! …. Any takers? I’m in, just wouldn’t know where to start!
AlertPay looks like a good competitor to PayPal
I see a lot of people have questions related to AlertPay accounts. As I’m using them for over 1 year and half I’ve decided to create a blog with more infos about account types,fees etc.
Feel free to check it here: http://alertpay.wordpress.com/
I too have been waiting years for PayPal to operate in SA, before we were allowed to even make payments at all. I started a petition that time, I’ve realized since that its not PayPal it should be addressed to, but rather SARS.
I am now living in the UK and easily managed to open a PayPal account that accepts payments. I do however want to return to SA at some stage and continue to accept payments!
The petition can be accessed at: http://www.petitiononline.com/sapaypal/petition.html and I would appreciate if everyone could sign it too.
Will you be able to deposit your Paypal funds into your Alertpay account and withdraw it from there? And of course then pay all the fees!
No you wont be able to. Converting money from Alertpay to Paypal or vice versa is not allowed. You can however send money from Alertpay to E-gold.
Also a new feature in Alertpay is that South Africa is now on the list where Alertpay supports localized banking services. So Alertpay is definitely the better options for South Africa. Also the new that PTC Sites does no longer support Paypal,which is in my favor allowing me to make money on many more sites now as they all are moving towards Alertpay. The latest report can be found here at http://alertpay1.wordpress.com/latest-alertpay-report/
and also http://wizzard2.wordpress.com
So to conclude its really looking good. Im sure it will take some time before they at an equal playing field as Paypal but they sure are moving in that direction.
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AT the moment Alertpay only charges R32 MAX for you to withdraw your Alertpay money straight into your bank account. Which is really not that much for the service you are getting and if you transact more than approx R2200 then you dont pay any charges at all ![]()
AT the moment Alertpay only charges R32 MAX for you to withdraw your Alertpay money straight into your bank account. Which is really not that much for the service you are getting and if you transact more than approx R2200 then you dont pay any charges at all
It use to cost me R75 to cashout cheques they sent me in the past.
Well there is also Setcom.co.za and Moneybookers.com one can use, no monthly payments, pay per transaction and a withdrawal fee.
The trouble with using other facilities is that the European and US clients are used to and trust Paypal. It’s hard enough to convince them to do business with a South African company without having to tell them to use another payment method. How do other countries deal with the tax issue? Is SARS incapable of doing the same?
I have my doubts whether SARS is the real problem…
Let’s face it… We can use Alertpay, Moneybookers, etc. Why doesn’t SARS have a problem with them but has a problem with Paypal?
I’ve seen some websites, where they advertise that you can get a US banking account, without having a US address, Social Security # etc, which you can use to register at PayPal
What do you think? Can it work or not?
I am currently working on an e-Book that offers several working solutions to the problem of accepting PayPal for South Africans and people from other countries similarly affected. Since I have to carry out a number of tests and write the e-Book, this should take at least 2 to 3 weeks at most.
I will be offering the e-Book in the Warrior Forum as a special offer and need local testimonials. There are ample International testimonials for those looking for a PayPal alternative because of alleged bad service by PayPal.
As such the ebook offers several working and low cost solutions, in the main, to all disatisfied internet marketers! The ebook also recommends other reliable payment processors for those disillusioned with PayPal and highlights a site that offers evidence based claims of law suits against PayPal.
So rather than jumping from the frying pan into the fire, the e-Book gives the reader the facts and they decide which payment processor to use ultimately!
I must admit that I battle with making e-Book covers with the titles. If someone can help doing the e-cover I will give them the free report that promotes the e-Book and later, when ready, a free copy of the “PayPal Problems Solved” e-Book and another high quality ebook that is a gem on starting and sustaining one’s online business in return for another high quality e-Book cover.
Any takers?
Regards,
Rajesh
You can go to the following website: http://www.20dollarbanners.com for relatively cheap E-book covers.
I’ve used them before and they’re really good. You can check out an example at http://www.debt.gpfnews.co.za
Hi
As a cheaper alternative for a Merchant account try Setcom.co.za I use it myself on 4 of my Ecommerce Sites. The advantage is no setup fee, no monthly fee
Disadvantages: slighter higher commission Rates, Customer have to register with Setcom prior to using it. Sometimes they feel it to time consuming.But at the end of the day Setcom works for me as I only pay commission on actual credit Card sales-No CC Sales- No Cost. Example of one of my Sites using this is http://www.cbdafrica.com
For Paypal like Ecommerce I use Alertpay which does allow Payments to and from S.A.
Also:Make your Opinion heard about this Problem at another Blog http://paypalsouthafrica.wordpress.com/
If enough People Comment or Complain we might get them here eventually.
You can get your money from Paypal if you are in South africa. Here is how
Click on this link http://www.bidorbuy.co.za/jsp/item/Item.jsp?Trade_TradeId=8082547
Moneybookers.com is a good alternative to paypal, and works for the receipt of funds into SA. One of my sites using Moneybookers.com is http://www.flightnetwork.co.za and it has worked well thus far.
I can some it up in one sentence, SARS (PTY) LTD
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Hi
I have just switched to AlertPay and it works very well. I can pay and receive money in US$ and transfer it to my current acc in SA (Standard Bank). Takes 3-5 working days.
Problem is, not all the US businesses will use AlertPay. But some are open and have changed to AlertPay when I asked them.
Anyone heard of Payoneer?
Tania
Paypal does not work because SA has foreign exchange controls and SARS will not let that go. It saved us from the sub-prime crisis. I am using Alertpay as well, but don’t know how they get around it. Maybe SARS does not know about Alertpay? shhhht!!!
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how can i get paypal funds into my alertpay account ? — “legally” !
Has anyone heard of Mygate. Apparently they are giving Paypal a run for their money.
They are a company that offers online payment solutions. A great thing about them is they dont just do South African transactions. They also offer international payment gateways.
Does anyone know if there are any updates to the receiving of monies via Paypal for South Africans?
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Hi
Has this changed yet??
Just tried to creat some SA Rand paypal buttons but no joy
What are you all using for Payments at the moment??
Thanks
Gareth
An inetllgeint answer - no BS - which makes a pleasant change