Receiving Funds from Overseas

[Neville Bailey]

My newly qualified step daughter has accepted a teaching post in the UK and she departs from SA on Christmas Day.

I've taken out a loan to cover all the money that we need to get her there, including a return airfare, visa and passport costs, and sufficient money in her bank account, etc.

We've agreed that she will pay me back once she starts earning pounds.

What is the best way for her to transfer the loan repayments to me? Can she simply go to her local UK bank every month and arrange a transfer into my SA bank account? What are the Reserve Bank implications?

[adrianh]

I will ask my wife for you. When we receivd orders from Europe we get her brother in the UK to charge via his Paypal account and he then transfers the money directly to us. The entire process is fast and doesn't cost a lot. The process is also much faster than us invoicing using our own Paypal account.

[vieome]

Check with Western Union, but I think you will need an absa banking account.

[HR Solutions]

Why don't you give her a card linked to your account which will work on any atm over there. Usually it is so easy just to draw money from an atm from an SA account and just as easy to deposit thro the atm.

[Phil Cooper]

No problem to wire transfer the funds direct to your bank account monthly.

[Houses4Rent]

I believe its called SWIFT transfer. Just make sure she ticks the boxes saying that she is paying all the fees and and that a certain amount of Rands need to arrive your account as opposed to a certain pound amount leaving her account.

She will have to declare the nature of the funds. Receiving bank might call you to find out the purpose of the funds, but as long you do not say money laundering or terrorist funds I guess they would be cleared without hassles.

[Neville Bailey]

Thanks for the feedback.

I've got a PayPal account which I have used from time to time to order goods from overseas. However, I have never used it to receive funds from overseas. If she opened a PayPal account and paid into my PayPal account, would that be a good option? Would my bank still intercept any incoming funds and call me for a reason?

[Rickie]

Hi Neville,

Also check into FX transfer companies such as 1stcontactforex. I've used them now since about 2012, and they give excellent exchange rates. Also have local SA offices, one here in Cape Town. There might be other similar ones too. All the best!

[Dave A]

I've got a PayPal account which I have used from time to time to order goods from overseas. However, I have never used it to receive funds from overseas. If she opened a PayPal account and paid into my PayPal account, would that be a good option?

Is it a merchant Paypal account (i.e. enabled to receive funds from other parties)?

Unfortunately being a South African and operating a merchant Paypal account comes with specific challenges.

[southcape]

To receive money through Paypal you need an FNB account. I think the charges are higher than an inter-bank transfer