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Options for EFT Payments

By Bidvest Bank
27-07-2016
There are various circumstances where you need to make Rand payments internally within South Africa, whether it’s from your bank account to another person’s account with the same bank, or to someone at a different bank. But did you know that there are actually three different options available to you, depending on how urgently you need the money to reflect and how much you’re willing to pay? 

Maybe it’s not simply a household bill you’re paying and the transfer is to a supplier that needs the cash before they ship you the goods? Whatever type of payment it is, here are the options you can choose from:

1. Normal EFT Payments: batch payments overnight up to R5 000 000

This is cleared overnight, even if it’s done from one bank to a different bank, but then backdated to the same day, as long as the payment is made before 2:30pm. Note that this applies if the payment is made during the working week, i.e. from Monday to Friday.

For example: if you make the EFT at 1pm on Monday, the person/supplier you’ve paid probably won’t see the amount in their account before the next morning. This is because the batch files from banks are run overnight. However, when it is credited on the Tuesday, it will be backdated to the Monday. 

If you hold an account with Bidvest Bank, your money will reflect in your bank account during the evening on the same day – giving you immediate access to your money. 

2. Real time clearing (RTC): individual real time payments generally not larger than R20 000

Real time clearing is typically used by individuals and means that the funds are cleared immediately, sometimes within a few minutes. In exchange for this convenience, you’ll pay a higher fee for it. This service is available 24 hours a day and 365 days a year (even on weekends) and Bidvest Bank is able to receive RTC payments like these.

Bear in mind that some banks have security measures in place with real time clearing, especially if you are paying a new beneficiary, where they may wait for two hours before clearing the money.  This is because you could be the victim of fraud and be coerced into making a transfer using your Internet banking.  

3. Same day (NPS) payments

With this option, the money is credited to your account by the end of the business day, rather than immediate clearance like option 2 above. Again, you’ll pay a higher price than if you were doing a standard EFT, because you’re paying for the convenience.

All payments greater than R5 000 000 are paid through this method. Businesses usually utilise this option, as often they are paying larger amounts and for security and fraud reasons, they don’t want the funds cleared immediately. These are also only performed on weekdays, which suits businesses, as they don’t typically need funds transferred on a weekend day.

Bidvest Bank offers both outward and inward NPS payments. 

Depending on how much you’re willing to pay, the urgency of the transaction and the convenience you’re seeking, you should choose the most appropriate EFT payment option for your needs.

Bidvest Bank offers a selection of personal banking and business banking accounts to suit every stage of your life, or the lifecycle of your business. Contact us to find out more.