Money Talk

Prior to moving to South Africa we had to figure out the banking system.  We used Commerce Bank in the US and of course with no office in South Africa we had to filter through the options.  Luckily several Black and Veatch employees have been living here for years and could give us some pointers.  We were able to open up a Bank of America account as they had a sister bank named ABSA in South Africa in which we could take money out of their ATMs at no fee.  We also opened a Bank of America travel credit card so we could purchase items without a foreign transaction fee. 

Banking fraud is common in South Africa.  Several ATMs are tampered with so once you swipe your card a thief will be able to obtain your account information if he has put a magnetic strip on the machine.  So every week I go to the ABSA bank location and withdraw cash.  Strangely enough it is free to withdraw money from the ATMS within the branch locations, but if you withdraw from a teller inside, it costs you money.  I try to use cash as often as possible, because I have heard that the employees at the stores can steal your credit card info and make fraudulent charges.   

I have found that several store employees don’t even know how to use their own credit card machines and always tell me my card is declined, when it worked at that same store the previous day.  Some stores will also ask to rub your card to transfer the numbers from the front of your card incase there is a problem with the transaction going through.  They tell me this is for “security reasons” but I am pretty skeptical.  We have always said no, and then they ask for your drivers license number.  Not sure what they are going to do with a MO drivers license number, especially when they don’t write anything else down.

Paying with cash or a credit card has worked most of the time but not always.  For instance, my domestic, Joyce, does not want to be paid in cash so the only option is to go to her bank and deposit the money straight into her account.  I have received several doctor’s bills from my stint in the hospital which state at the bottom of the bill the bank and account number for paying your bill.  I tried to pay over the phone with a credit card but they won’t take it, so I end up going to several banks with my cash to deposit into their account.  I have found this to work quite well, but don’t like carrying around that much cash as crime here is quite high. 

We have been advised to never let our credit cards out of our sight when paying.  When you go out to eat the server will bring the credit card machine to your table and swipe it in front of you, this also happens at the gas station.  A few times when we have paid cash for our meal the server will have to get a manager to bring back our cash, as if he is not allowed.   It has taken me a while to figure out the change here.  The bills make sense, basically a Rand 10 is equal to $1 US, R50=$5, and so on, but the change is another story.  I come across quite confused anytime I have to pay with change and it takes me a while, but I will figure it out.  

Pictured are the R100 and R20 front and back

Every house in our community has a safe and ours is actually equipped with a walk in two-story one.  I looks like a safe within a bank but when you open the door it leads your down a stair case into a brick room in the basement that is approximately 10x6.  The owner of the house said he intended it to be a safe for his wine and guns, but we have yet to stock pile those.  The door of the safe even has a hidden door that just looks like the regular wall but if you push in on one side it opens to expose the safe door.  I am pretty sure we won’t be filling it anytime soon but makes for an interesting part of the house. 

  

Overall, I am pleased with what we have found for banking and managing our money.  It has been especially nice that the conversion rate is simple to understand, about 10 to 1.  One day we might open up a local account, but for now we can at least pay our bills and track our money.