South Africa Banks

Introduction:

We recently posted an article about Payment Gateways in South Africa and the article has received a great deal of traffic since its inception / original post.

So, given the demand, we thought it would be an idea to put an article together on South Africa Banks and how they relate to the various payment gateways. This particular article will be particularly useful for those wanting to start a business in South Africa and have questions relating to banking and payment gateways in South Africa. It will be particularly useful where an E-commerce website requirement for the SA business will need to be addressed.

PLEASE NOTE: The views and comments in this article are based solely our experiences and our current knowledge of banks and associations. Although we do our best to make sure that the information presented is accurate, there may be discrepancies.

Who are the major banks in South Africa?

There are a number of banks available throughout South Africa, but the ones that almost every South African will know are the following:

Other banking “players” include:

  • Rand Merchant Bank
  • BOE (Bank of England)
  • South African Reserve Bank
  • Stanbic Bank
  • Reserve Banks
  • Wesbank
  • Virgin Money, facilitated by Absa
  • Etc

** If you are considering starting a business in South Africa and are planning on having a South African bank account, then you will need to contact one of the above mentioned banks. Although not part of this article, it’s worth mentioning – do make sure you understand the South African National Credit Act. Some of the banks have information on the matter on their websites and can explain it to you in person / telephonically should you have questions.

Which Payment Gateway for which Bank?

Based on our experience, we would typically recommend a client to investigate all payment gateways before settling for the one that is “linked” with their bank. WHY? Because each payment gateway offers different pricing / transaction costs and from our perspective, if a client needs to save on costs, transaction costs and monthly fees need to be taken into account.

So, what does tend to happen, is that a client will choose a particular payment gateway based on its transaction fees and monthly costs – ultimately where he / she gets the best deal. And what can inevitably happen, is that the client lands up having 2 bank accounts where money is moved between. In other words, the client goes for the bank that offers him the best deal on bank charges, service, etc and goes for the payment gateway that offers the best transaction rates / pricing.

Now, back to the question – find below the name of each bank and which payment gateway they are associated with:

First National Bank (FNB)

  • VCS (http://www.vcs.co.za)
  • Pricetag (http://www.pricetag.co.za) – not dependant on your bank
  • MyGate (http://www.mygate.co.za) – not dependant on your bank

Standard Bank

  • Paygate (http://www.paygate.co.za)
  • VCS (http://www.vcs.co.za)
  • Pricetag (http://www.pricetag.co.za) – not dependant on your bank
  • MyGate (http://www.mygate.co.za) – not dependant on your bank

Absa

  • VCS (http://www.vcs.co.za)
  • Pricetag (http://www.pricetag.co.za) – not dependant on your bank
  • MyGate (http://www.mygate.co.za) – not dependant on your bank

Nedbank

  • IVERI (http://www.iveri.co.za)
  • VCS (http://www.vcs.co.za)
  • Pricetag (http://www.pricetag.co.za) – not dependant on your bank
  • MyGate (http://www.mygate.co.za) – not dependant on your bank