International Transfer with Capitec: Fees, Process, Time

With around 2.8 million¹ immigrants living in South Africa including expats from the western world it is no surprise that the demand for sending money to and from the ‘Rainbow Nation’ is high.

However, legislation in South Africa makes it one of the more complex countries for foreign exchange. This was compounded recently by regulatory changes that mean transfers are subject to enhanced due diligence processes. Capitec Bank is a popular choice for exchange between the nations due to its dependable financial services. The bank is now able to send money from South Africa to other nations making it more attractive to expats. But is it truly the best solution in the market?

We break it down in this article by looking at the process, fees, rates offered, time and more. We also help you understand how Wise’s multi-currency account could potentially fare as a formidable and comprehensive alternative to Capitec.

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Can Capitec do international money transfers?

Yes, Capitec is now able to do international money transfer from South Africa to other countries. These include exchanges in currencies such as the dollar, euro, pound, etc. The bank is still working on expanding the list of currencies it supports transfers to and you can reach out to them for queries relating to the same. We discuss this more in detail in the following sections.

Capitec international transfer fees

Capitec Bank now allows you to send and receive money internationally in around 50 countries from South Africa. You can do so using their app with a feature called Transact. For sending money from South Africa to another country you could also email Capitec Forex to setup an FX Trade Account for you to make international payments. They typically contact you within 48-hours of putting in a request as per their website².

The fees do vary depending on the circumstances of each specific transfer. But they do have a fixed fee for both sending and receiving payments. We discuss them below.

The table below discusses the costs of international transfers with Capitec (apart from the changing forex rate.)

Receiving International Transfers with SWIFT
Capitec supports its users to receive international transfers using SWIFT. Although the sender will incur fees on their side, depending on which bank they use and the exchange rate at the time of the transfer, using Capitec Bank to receive international transfers also means you’ll be charged a fee.

You must be aware that fees for international payments cannot be determined or quoted before the payment is received due to the number of other banks that might be involved to make the payment to Capitec Bank². This also holds true when sending payments abroad with Capitec.

The intermediary banks processing your money transfer may charge additional fees⁷ and the amount received may be lesser than your initial expectation as mentioned on the Capitec website.

For complete transparency and peace of mind you can opt for Wise – an alternative for international money transfers to South Africa that we discuss in the following section.

Making Outward International Transfers with SWIFT
To send an international transfer from South Africa through Capitec you would need to send an email to CapitecFX@capitecbank.co.za to get an FX Trade Account setup. A representative will typically call you within 48-hours to get your account setup. It is important to note that as per information on the website there is no online application available and you will need to follow the aforementioned steps.

For further information on the process you can either write to the email listed above or call +27 87 830 6361 from Monday to Friday 8am – 5pm. You also need to be aware that when sending money with Capitec the exact fees you’ll incur cannot be quoted prior to transfer due to multiple bank fees being involved in the transfer.

So don’t be surprised if you end up paying much more than you initially set out for.

Capitec international transfer exchange rate

In addition to the fee for incoming international transfers, the exchange rate used by Capitec will make a difference to the final amount that you receive in your bank account.

Capitec suggests that when you are receiving an international transfer, the sender should transfer the payment in a foreign currency². Capitec then automatically converts the transfer with the exchange rate, and you end up with the remaining amount in your Capitec account after you’ve received a Balance of Payment Declaration.

Exchange rates are always changing. When you start making the international payment, an indicative exchange rate will be displayed based on the exchange rate at that moment. The final exchange rate will be quoted when you confirm the payment.

Use Wise for international transfers to South Africa at the mid-market exchange rate

Considering the transfer fees, exchange rates, and hidden charges applied by traditional banks, Wise provides a transparent solution for international transfers at the mid-market exchange rate to South Africa. You do away with hidden fees as Wise mentions the minimal transfer fee upfront so you know exactly what you will be paying and also what amount will be received.

Learn more about Wise’s mid-market exchange rate and take a look at the rate tracker.

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Capitec international transfer process

With the launch of Transact on their app, Capitec has now made it easier to send and receive money from South Africa.

In this segment, we’ll take a look at exactly how you can receive and send international transfers and what the process looks like.

Sending international payments via app⁵:

• Sign into the Capitec app and tap Transact
• Choose International payments
• Tap Make a payment and follow the on-screen instructions

It is important to note that the app currently supports sending money to most countries using USD, GBP and Euro currencies. If the currency, country, or foreign receiving bank you wish to send money to is not on Capitec's list it means they are not currently supported by Capitec⁷ and you can reach out to the Forex team on 021-8094501.

Receiving International Payments via app⁶:

• Sign in to Capitec app and tap Transact
• Choose International payments
• Tap Receive a payment and follow the on-screen instructions


Receiving International Transfers via SWIFT
You can receive international transfers, via SWIFT, with Capitec. The person who is sending you money simply needs to know the required details of your Capitec Bank account and make an international transfer from their end with a bank or a provider that allows international transfers to South Africa.

Capitec international transfer requirements

The person who is sending you the money needs to know these details to make a successful transfer to your Capitec account²:

• Capitec Bank’s SWIFT code for currency (CABLZAJJ)
• Your 10-digit account number
• Your full name as is shown on your ID/Passport
• Your full residential address
  They also need to add the reason for payment on the transfer reference (e.g. gift, tuition etc).

If the amount they are transferring to you is over R50,000, you will need to declare the payment over the phone with Capitec Bank². You will therefore need to know the details of the sender, such as their full name, their account, and the amount they are transferring to you.

If you are sending money internationally, the bank lists the following requirements:

• Sufficient funds in your main savings account to cover the international payment and related fees.
• The country name and foreign currency that the international payment must be made in.
• The beneficiary's contact number, address, full name and surname, or business name.
• The beneficiary's bank account number or the International Bank Account Number (IBAN).
• The SWIFT code or name of the bank receiving the money.

Capitec international transfer limits

The SDA is the South African Reserve Bank allowance allocated to South African residents for money to be transferred to foreign countries. The prescribed limit/allowance per individual is R1 million⁴ per calendar year (i.e. 1 January – 31 December) and it includes all outward international payments and international card transactions processed by South African banks. The minimum amount that can be sent is R350⁴.

There’s no specific information provided by Capitec about the maximum (or minimum) International transfer limits they allow their users to receive.

However, as previously mentioned, Capitec will need to obtain a declaration from the beneficiary on any amounts that will be transferred to them above R50,000².

How long does an international transfer take with Capitec?

The beneficiary should receive the international payment sent through Capitec approximately 4 business days after being processed⁴. However, the time it takes to receive the international payment also depends on the beneficiary bank's destination, time zone and banking procedures.

While Capitec Bank offers a reliable solution for international transfers to and from South Africa, the associated fees and exchange rate margins can be a drawback. Their Transact feature and SWIFT support provide convenience, but it’s important to weigh your options.

Wise, on the other hand, stands out as a transparent and cost-effective alternative. With its use of mid-market exchange rates and minimal transfer fees, Wise ensures that your money transfers are both affordable and faster.

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Sources:

1. Expats in SA
2. Sending and receiving international payments through Capitec
3. Capitec: Inward payment fee
4. Capitec: Outward payment fee
5. Capitec outward transfer process
6. Capitec inward transfer process
7. Capitec: Intermediary bank/ correspondent bank fee

Sources checked on August, 08, 2024.