3 mandatory rules for South African PayPal users
If you have a PayPal account you need to be aware that according to the South African Exchange Control you have to follow these 3 rules:
- Any funds you have received into your PayPal accounts can not be sent to other PayPal users.
- No funds can be used to pay for purchases anymore.
- You MUST withdraw your funds out of the account within 30 days of receiving these funds to a South African bank account.
update 24 May 2017 – this article was written in 2013, here is a link to the terms and conditions that outline the Terms and Conditions from FNB.
PayPal has a relationship with FNB to aid in this process so you can withdraw the money in South Africa. Even if you are not an FNB customer you can still make use of the FNB PayPal service which is known as “bank managed top up and withdraw’. The South African Reserve Bank (SARB) regulations require and authorized dealer to facilitate all cross-border transactions and the related Balance of Payment (BOP) reporting. FNB uses the information provided when creating an FNB Online banking profile and when linking your PayPal account to report all Top Up and Withdraw transactions to the SARB.
In terms of Financial Intelligence Centre Act (FICA), all accountable institutions (such as banks) have specific duties to help prevent money laundering. One of such duties is to perform a “Know-Your-Customer” (KYC) check on all customers. FNB will, therefore, request certain documentation when creating an FNB Online banking profile for non-FNB banked customers.
How to withdraw your PayPal money in South Africa ?
Head over to the www.gotpaid.co.za website and follow these steps:
- click on option 2 (on the graphic)
- select “for me” or “Business”
- select “I do not bank with FNB”
- click “submit”
Once you have clicked onto “submit” you would need to complete the application form which will allow you to create an online banking profile with FNB. You will be required to send certain documentations through which is listed on the website. FNB will send you an email as soon as everything is in order and you will then be able to add your Non-FNB account details.
Please Note the following:
FNB charges 1.5% of the ZAR amount per Top Up and Withdraw transaction.
FNB will quote a ZAR / USD exchange rate for each Top Up or Withdraw transaction.
Certain PayPal transactions attract fees. Visit www.paypal.com/za for more information.
For more information with regards to the FNB PayPal Top Up and Withdraw Service you can contact FNB directly on 0861 729 725 or [email protected].