by Janine Noble

Paying too much for bank services

Better awareness for business

A lot of businesses are unaware of additional EFT bank charges.
electronic banking.jpg

An independent survey recently conducted, included 210 respondents in the small to large scale enterprise categories, revealed that businesses have, on average, a 48% confidence level around their awareness levels of how much they are spending on electronic fund transfers each month.

In addition, 51% of businesses do not know whether they are being charged additional electronic transactional banking fees for debit orders, beneficiary amendment fees, or viewing of online banking platforms.

The survey also revealed that only 17% of South African businesses are confident that they are not paying additional fees for these services.

When asked about the transparency of electronic transactional banking fees, 78% of businesses surveyed believe that there is a lack of transparency in the industry.

According to Michael Barr, CEO of SureTransact, in many cases, businesses are paying excessive charges for electronic transactions such as EFTs and debit orders.

He says that this situation is fuelled by the fact that local businesses are unaware of what type of services they are paying for.

“Most businesses are unaware of the fact that often, they are paying additional fees for individual EFT or debit order transactions that take place.

"Additional fees such as batch fees, beneficiary amendment fees and viewing fees, which all add up to be a significant amount at the end of each month,” Barr said.

Barr says that businesses are paying these fees due to the lack of competition and transparency in the banking industry.

“The survey findings highlight the need for businesses to be educated on what they are really paying for transactional fees.”  

Barr explains that businesses do not have to change their existing banking provider.

“Without needing to change current banking relationships, businesses are able to make use of a secure cloud-based platform to make payments from any location at any time.

"In addition, this will be the first platform of its kind to allow users to multibank with various banks while using one payment interface,” he said.

The SureTransact platform is approved by the Payments Association of South Africa (PASA.

“Our platform offers the same level of security as the online banking portals used by the major banks in South Africa and ensures the protection of data at all times,” Barr said.

Barr says that the platform is unlike that of any of its competitors, as clients’ funds are at all times in their own (the clients) bank account.

“This ensures that clients’ capital is at all times in their possession and that they are the party to earn interest on the funds,” he said.

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