CAPE TOWN - Capitec Bank announced on Monday that it will absorb the increase in VAT on their most popular digital transactions in an effort to keep bank fees as low as possible for their 9.5 million customers.
Zero VAT increases will apply to all electronic payments on the Capitec app, internet banking and USSD at R1.60 and immediate payments between banks (RTC fees) remains at R10 per transaction. The credit card monthly fee will also remain flat at R35 per month.
Francois Viviers, Executive of Marketing and Communications said in a Capitec statement, “In tough financial times people seek value for money, our fees are simple and transparent and clients pay only for the transactions they perform. In addition to low, fixed bank fees they also earn the highest interest of at least 5.1% on daily balances from the first cent.”
Capitec updated its recently released 2018 bank fees to include the changes to VAT from 1 April 2018. Access to remote banking (online and app) remains free with zero-rated data for the app, while fees for payments in branch increased to R5.35 per transaction, and the monthly admin fee increased to R5.80.
Statements and transfers between own accounts on cell phone and internet banking remain free, while the price of payments on these channels will increase to R1.60 per transaction and debit orders will increase to R3.73.
New Bank Fees 2018 as of 1 April 2018:
Zero VAT increase:
- Electronic payments on app, internet and USSD at R1.60
- Credit Card monthly fee remain at R35
- RTC fees remains R10 per transaction
R0:
- Pay with your card or shop online worldwide
- Transfer money between your accounts
- Access your accounts on your banking app or internet banking
- Create recurring payments on your app or internet banking
New prices with 15% VAT:
R1.61 - Cash withdrawal at card machine
R3.73 - Debit orders
R 5.35 - Payments and transfers in branch
R 5.80 - Monthly admin fee
R 6.56 - Cash withdrawal at Capitec branded ATM
R 8.83 - Cash withdrawal at any other ATM in South Africa