Capitec fees up across the board

HIKES: FIRST INCREASE FOR MOBILE APP SINCE LAUNCH

Capitec increases fees for electronic payments made via its mobile app for the first time since it launched the channel in 2014. It is the first fee increase for payments made via internet.

But it’s still among the cheapest compared with rivals’ entry-level accounts.

Capitec 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% to R1.60 per transaction.

Besides the monthly fee charged for its credit card (R35), it has increased fees across the board. Some fees, like the fixed charge for withdrawing cash at any other local ATM (R8.75) increased just 3%, while others are up closer to double-digits.

It’s 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 at end August 2017), providing more convenience to its clients.

Cash withdrawals at the bank’s own ATMs are now 8% more expensive at R6.50 per transaction. Cash handling costs continue to soar; 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 compared with rivals’ entry-level/nofrills bank accounts.