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Capitec increases app fees for first time since 2014

Steep increases made elsewhere to change customer behaviour.

Capitec, the country’s second-largest retail bank by number of customers, has increased fees for electronic payments made via its mobile app for the first time since it launched the channel four years ago. This is also the first fee increase for payments made via internet banking since at least 2011. From March 1, fees increased by 6%, from R1.50 to R1.60 per transaction. 

This may sound low, but transaction volumes are up 39% year-on-year as at end-August on these channels. The bank noted then that nearly three-quarters of transactions possible on self-help devices are done on those.  

With the exception of the monthly fee charged for its credit card (flat at R35), it has increased fees across the board. The bank simplified its fee structure last year (read: Capitec shows how simple bank fees should be) and this has remained in place with five amounts covering the majority of paid transaction types.

Some fees, like the fixed charge for withdrawing cash at any other local ATM (R8.75) increased by just 3%, while others are up closer to double-digits. When compared to the charges at other banks, it is not a stretch to suggest that Capitec is subsidising these withdrawals at other ATMs to ensure a far broader footprint than it has currently (4 281 as at end August 2017), providing more convenience to its clients.

The monthly account fee for its Global One account is up by 4.5% to R5.75, and with over 9.1 million clients as at end-August, this will translate into an impact of more than R30 million in extra transaction fees in the coming financial year.

 

2015

2016

2017

2018

Change from last year

Monthly fee

R5

R5.25

R5.50

R5.75

4.5%

Digital channels

‘Pay by card’

Free

Free

Free

Free

Airtime

Free

Free

Free

Free

Payments (app/internet)

R1.50

R1.50

R1.50

R1.60

6%

Card limit (app/internet)

N/A

R1.50

Free

Free

Debit orders

R3.20

R3.40

R3.50

R3.70

5.7%

Cash

Cash at till point

R1.25

R1.30

R1.50

R1.60

6%

Cash at Capitec ATM

R5

R5.50

R6

R6.50

8%

Cash at any other local ATM

R8

R8.50

R8.50

R8.75

2.9%

In-branch

Payment

R3.40

R4

R5

R5.30

6%

Add/change recurring payment

R4.50

R4.75

R5

R5.30

6%

Recurring payment

R3.40

R4

R5

R5.30

6%

Statement (Transactional/savings)

R3.75

R4.50

R5

R7.50

50%

Card limit change

R3.40

R4

R5

R5.30

6%

PIN reset

R3.40

R4

R5

R5.30

6%

Replacement card

R50

R53

R55

R60

9.1%

Credit card

Monthly fee

N/A

N/A

R35

R35

0

Cash withdrawals at the bank’s own ATMs are now 8% more expensive at R6.50 per transaction. Cash handling costs continue to soar, and it is no surprise that over the past three years, fees for withdrawals at Capitec ATMs are up 30%. However, given these fees are fixed and don’t increase for larger withdrawals, Capitec’s remains among the cheapest when compared to rivals’ entry-level/no-frills bank accounts. FNB and Standard Bank, for example, charge a rate per R100 withdrawn. On lower value withdrawals, they will be cheaper, but as soon as a withdrawal exceeds R400, their fees get pricey quite quickly.

Fees for cash withdrawals at Pick n Pay, Boxer, Shoprite or Checkers tillpoints increase by 6% to R1.60.

Cash withdrawal fees

Absa

FNB

Nedbank

Standard Bank

Capitec

Old Mutual

Transact

Easy Account

Pay-As-You-Use

Access Account

Global One

Money Account

Own ATM

R6

R1.85/R100

R6.50

R1.80/R100

R6.50

Other ATM

R12

R8 + R1.85/R100

R8 + R1.50/R100

R8 + R1.80/R100

R8.75

R8.50 (1st 4)/R13

Point of Sale

R1.30

R1.40

R2

R1.80

R1.60

R1.50

Many common in-branch transactions, including payments and transfers, are up 6% from R5 previously to R5.30. Capitec has hiked the price of a printed statement (in-branch) for a transactional or savings account by 50% to R7.50. This is surely to help force a change in behaviour from its customers, considering statements are available for free on digital channels and at a charge of R2.50 at ATMs.

Hilton Tarrant works at immedia. He can still be contacted at hilton@moneyweb.co.za.

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SA banks, like SARS and SASSA, a satanic curse on the few of working population.

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