Geographical borders are no longer a hindrance to making transactions in our digital, modern world. International payments have become a common necessity for individuals and businesses alike. South Africans engage in many cross-border transactions as residents of a country with a growing economy. Whether you are paying for goods or services, or conducting international business, understanding the international payment process is essential. In this article we discuss the pros and cons of making online payments and important considerations. We will also guide you through your first online transaction.

As a Nedbank Private Wealth client, you can make international payments from your Nedbank Private Wealth current account to an offshore bank account in over 25 different currencies quickly, easily, and securely using the Nedbank Private Wealth app and Online Banking. To proceed, you can use your annual R1 million single discretionary allowance, or your foreign investment allowance or simply provide supporting documents in line with exchange control regulations.

The pros and cons of making international payments online
Some of the advantages are as follows:

• Convenience: The most significant benefit of online payments is convenience. You can make payments from your home or on the go, with just a few clicks or taps.
• Accessibility and speed: Some payments can be processed instantly, allowing for immediate transactions and mitigating waiting or clearance periods associated with traditional payment methods.
• Security: Online payment platforms make use of advanced security measures to protect user information and financial data, like encryption, two-factor authentication, and fraud detection.
• Transaction tracking: When making online payments, you have access to detailed transaction records, allowing you to keep track of expenses, etc.
• Transaction fees: Online payment methods or platforms charge a lower transaction fee on international payments.

Disadvantages include:

• Potential digital security risks: Although online payment platforms employ robust security protocols, this does not eradicate all risks of online fraud and data breaches, so always be vigilant.
• Technical issues: Online payments rely on technology, and system failures may occur, so it's important to have contingency plans, especially when time-sensitive payments are involved.

Exchange rates and fees
Exchange rates and transaction fees can significantly impact the cost of international payments. Local and international banks and financial service providers may apply different rates and charges, so compare options and consider the total cost involved. Additionally, note that fluctuations in exchange rates can affect the final amount received.

Security and fraud prevention
Safeguarding your financial information and ensuring secure transactions are paramount. When making international payments, follow these security practices:

• Choose a reputable financial service provider, like Nedbank Private Wealth, with robust security measures and encryption protocols.
• Always verify the legitimacy of the recipient before transacting online.
• Use strong passwords and enable two-factor authentication whenever possible.
• Monitor your bank statements and transaction history regularly for any unauthorised activity.
   

How to use the Nedbank Private Wealth app and the Online Banking site to make international payments
 

• Via the app: Log in and tap Transact > Payment at the bottom.
• Via Online Banking: Log in and click on Transact > International payments.
• Then select Make an international payment and follow these simple steps to complete your payment:
   

1. Complete the beneficiary details, including:

• name and surname;
• address; and
• bank account number.

Note: A SWIFT code or IBAN number is required, depending on the region to which the payment or transfer is made. Ask the recipient to obtain this from their bank.

2. Select the Reason for payment.

• SDA BOP code: No documents required.
• Non-SDA BOP code: Upload supporting documents.

3. Enter the amount in rand or the international currency.
4. Accept or Decline the quotation.**

If you decline the quote, the entered payment details will automatically be saved in your View International payments history tab under saved payments for easy access, when you need to generate another quote.

**If you accept the quote, the transaction will proceed, and you will be bound by all the terms, conditions and charges. Once your payment has been submitted, you can view it in theView International Payment History section. When your payment appears under the Settled tab, you will be able to download the proof of payment notification.

Considerations

• Note that this service is available to South African residents with a valid South African identity number.
• Transactions can only be completed from your Nedbank Private Wealth current account.
• Exchange control regulations apply. Nedbank Limited reserves the right to decline or cancel a transaction that may result in a breach of exchange control regulations or any other laws.
   

Why invest with us?
Nedbank Private Wealth offers expert personal financial advice to ensure that you make the most of your wealth in a way that is appropriate for you and your financial goals. As a financial institution, our services have delivered market-leading investment returns in four different categories for over 10 years. Benefit from the expertise of a highly skilled, experienced and dedicated research team who conduct in-depth research and apply sophisticated valuation methods to meet all your wealth management needs from a single contact point. Our investment solutions can also help you set up an integrated wealth management framework that includes banking, stockbroking, international, fiduciary, philanthropy and insurance products and services, with the convenience of accessing all these services from one point of contact.

Making international payments online has never been easier via the Nedbank Private Wealth app or Online Banking.
 

Want to know more?

• Contact your wealth manager.
• If you’re not a client yet and want to find out more about how we can help you, we would like to hear from you. You can call us on 0800 111 263 or complete our online contact form.
• To find out more about our international offering, click here.