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Seeds for Africa

Paypal Payments from South African Customers

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Seeds for Africa

Please could Bidorbuy management let me have their comments on this. We have been informed by FNB that it is in contravention of SA Reserve Bank regulations to accept payments from customers via Paypal for deliveries within South Africa. Any paypal funds received are not permitted to be used to fund purchases and have to be withdrawn into your SA bank account within 30 days.When withdrawing funds from Paypal a declaration (which is reported to the SA Reserve bank) needs to be made as to the source of the funds. There is no code or reason on the declaration to state that the funds were received for goods or services provided locally.

 

My question to Bidorbuy is that surely the option of making payment via Paypal should be disabled to South African buyers. I would be grateful for your feedback.

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Seeds for Africa

Bidorbuy - any feedback?

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Seeds for Africa

Nearly 3 weeks later and still no feedback?

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johan

The question you raised here is certainly interesting.

 

There are many variants on transactions, this would include the location and the nationality of buyer and seller etc. We will look into the matter further and to see if this can be managed on a site level and how to cater for the complexities surrounding this.

 

In the meantime I would suggest that you make it clear in your listings and payment terms that paypal should only be used by international buyers.

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Seeds for Africa

Hi Johan

 

Thanks for the feedback. It is all well and good to note on the Paypal payment option that it is only available to South African buyers, but as we well know this will not stop SA buyers from using it as an option. This is the note we currently have which we have had on our store for the last couple years " Regrettably due to exchange control regulations, we are unable to accept payments from South African Customers via Paypal. Paypal is only available to International customers." Even though the note is there, over the last weekend we have had 3 PayPal payments from SA buyers. This will then create a lot of extra work (we will have to refund the buyers paypal payment and request them to repay using another payment option) and frustration from the buyer who will ask why the option is available if they cannot use it. This is in essence why we are suggesting that if an address is in SA that the PayPal option should not be offered as a payment option. A solution could also be that sellers can select whether to accept PayPal payments from all locations or just from outside of SA.

 

 

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Seeds and All

Grant is correct. If an address is in South Africa the PayPal option should not be offered as a payment option. It confuses and in some cases (Order - 11434459) upsets the buyer.

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rank32

i think receiving payment via paypal is great , why would you want to prevent yourself from earning foreign currency us dollars ,pounds etc !! , I wouldn't worry about fnb too much , I have a few us dollars sitting in my paypal account for ages ,its great , every now and then I get a mail saying I have to withdraw it , so I do , then the cycle repeats itself , sa reserve bank should hook up with paypal an make life easy for us like all the other banks in the world are doing !.

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PumiX

A bit late but here is more Info.

https://www.bidorbuy.co.za/help/444/Listing_Policy

8.2. Sellers based in South Africa may not accept Pay Pal payment from buyers based in South Africa for goods to be delivered inside of South Africa. 

 

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Wodan

The reason FNB does this is the SA Reserve Bank's exchange control rulings. One is not allowed to perform domestic payments in foreign currency. N N sure why they disallow rand. May be the way they have set up PayPal in terms of Financial Surveillance Reporting - i.e. assuming ZAR payments are coming in from outside the country. 

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bellemodel

You work hard for your money and then does it not belong to you. It belongs to the Reserve bank 

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