Processing Online Payments in South Africa
February 13, 2007 
31 Comments
Doing business online in South Africa remains a massive challenge, not just because of the lack of systems, but also because of the unusually high cost of processing online payments.
South African banks are still living in an archaic era, where online transactions are considered to be risky at best, and the associated fees reflect the security propaganda.
As a comparative, a merchant account in South Africa costs on average 450% more than in the US, UK or Australia. In addition to which, the high monthly fees make it difficult for first time online entrepreneurs to enter the market.
The result is that most savvy South African Internet Marketers have offshore accounts and merchant facilities, enabling them to trade online without all the red tape and high cost of processing payments locally.
In fact most offshore merchant accounts offer FREE signup, NO monthly fees and their percentage per transaction is often half that of the local merchant accounts.
SARS and governments policies, coupled with the banks largely misinformed opinions of doing business online has somewhat stifled the growth of online business in South Africa.
All be it through a process of necessity to earn in an ever changing political economic environment, or just because South African's take to technology naturally, online business in South Africa is experiencing massive growth despite the obvious challenges.
Right now there are very few affordable or sensible options for processing locally, but if you absolutely must here are some of the options available:
- Setcom http://www.setcom.com
- PayGate http://www.paygate.co.za
- MyGate http://www.mygate.co.za
- Virtual Card Services http://www.vcs.co.za
- Paradigmsolutions http://www.paradigmsolutions.co.za
- Iveri http://www.iveri.co.za
Although it is really difficult to select a clear winner amongst the above listed payment processing options, it must be said that Setcom is the most progressive having clearly opted to emulate Paypal by offering free setup, and no monthly fees.
Hi Justin
Thank you for the list of SA payment gateways.
I would like to mention one more
Pricetag – http://www.pricetag.co.za
Another note: Setcom sounds like a nice idea, but I won’t use them at this stage. I am too afraid of customers leaving when they see they have to register for yet another account (after registering for an account on your shopping website). I might add Setcom as a payment option, but not as the only payment method.
I would also like to add another called http://www.globill.net
Note on Setcom: I’ve tried them and on first and second and third try on a Sunday, they had problems with their customer support contact form, which returned a server error and the integration and actual payment processing also allowed for a server error on that specific day.
I was informed that it was temporarily, but what would’ve happened if that “temporarily” happened while I was making 300 sales per day?
Anyway, great article Justin
Hello Justin,
First of all I assure to you that Globill.net is a third company, they have the interface only but the Credit Card processed by MyGate, So why not getting direct link from MyGate and safe %11.
Second of all, Globill is a money laundry company, we’ve worked with Globill for 100 day, and we should receive 4 payouts, when the payout date comes, Globill sends us e-mail that the payout have been sent to our bank, they have told us the same e-mail 4 times and all the times they lie, we’ve got confirmation from our bank and Globill bank “barclays” each time, that there is no wire transfer made from Globill to us, let me be more clear, made from Mark Lazarus to us.
and once we busted Globill lie on us, they sent us e-mail that they have freezed our money for 180 days because they are affraid of chargeback, by the way they already freezed 10% of the whole money.
We have contacted MyGate to solve our problem with Globill, guess what they replied ?
1- They can’t give us Globill phone numbers or address.
2- They can’t get our money from Globill at all.
3- They can’t help us in any way
Now Globill and MyGate are not answering our e-mails.
Meanwhile, we are preparing the official papers with one of our lawyer, and we will move through the LAW against MyGate and Globill, and we have 3 phone calls recorded with MyGate and the whole e-mails have been saved to prove it.
sorry, I’ve took from you lot of time
One of the greatest challanges we are faced with as a payment services provider is the abuse of our system by fraudsters.
We don’t appreciate slander. To set the record straight, in this case: XtraVouchers, every single transaction processed for them was later determined to be suspected fraudulent. Spurious cardholder details were used with suspected stolen credit card numbers (a repeat of this is unlikely now that we are 3D secure). Attempts were made to contact each customer who purchased from XtraVouchers – in all cases telephone numbers were invalid or not available (supposedely being a telco provider you’d expect their customer telephone numbers to be valid). After repeated attempts we were unable to verify a single order from any of their ‘customers’.
Yes their remaining funds are on hold for 6 months which is the liability period that we are faced with.
MyGate.co.za being a South African payment gateway provides ZAR only processing, we support 63 currencies worldwide so it would not suit XtraVouchers who used to process in USD. This did not stop them trying and pestering MyGate.co.za relentlessly for a payment solution.
Sorry XtraVouchers, it doesn’t work like this. They tried with PayPal who booted them out, they tried with other providers too. We now see their site is gone, wonder why?
Hi Mark,
Thanks and congratulations on responding to this post.
Kindly note that neither I nor any of my staff make any judgments on the comments approved on this blog, as we try by all matter of means to keep this blog open to the subject to public debate, and completely transparent.
Your comments here are a testament to your companies commitment to engaging the market place.
Hi,
Well Mr Mark, Please let people here know, Why you do NOT offer telephone number for your company Globill.net NOT MyGate.co.za this is number 1.
You are kindly asked to tell readers here Why Globill.COM was closed in the past without telling its customers, suddenly.
YOU SAID “a repeat of this is unlikely now that we are 3D secure” will you have to excuse me and TELL everyone here that you already had 3D secure system before we subscribe to you in the 14th of March 2008, and that’s why we chose Globill because of the 3D.
About verifying customers by their phones, you said “After repeated attempts we were unable to verify a single order from any of their ‘customers’.”
Will if you want I can give you many of our customers phone numbers who already purchased using Globill and you get sure, BUT please don’t tell people the half of the truth, Just SAY exactly ” I have tried to call certain number of customers” Not ALL.
Please DO NOT talk as MyGate.co.za owner or employee, because you are Not. you simply the owner of Globill. and let me here remind all readers about something.
Mark the owner of Globill and after a business together for more than 5 months, imagine that he remember to ask us for Telephone number + verification papers + Bill utility .. all of that remembered after we contacted Mygate.co.za asking them for help us with him. and NOW he is talking by the name of MyGate.co.za.
However Mark, we have passed more than 135 days and still less than 50 days, we will wait, the other 50 days.
Regards
To put the record straight:
1. We being Globill.net are not and never have been related or connected to GloBill.com whatsoever, whom, as far as I am aware, went out of business years ago.
2. Our full contact details including telephone numbers, Skype, Messenger ID’s is always available on our Contact Us page.
3. I’ve never claimed to be a MyGate.co.za employee/owner – not sure where you get this from.
4. We attempted to call each and EVERY ‘customer’ of XtraVouchers without success in every single case – number unavailable or number invalid – billing telephone number for ‘customer’ was used.
5. Our request for documentation from clients varies for different clients
Hi,
Currently globill.net payment services are out of service, and it’s been this way for more than 4 days, this will make their merchants lose money and customers for a week at least. Where’s the redundancy/ fail-over plan? How would merchants trust this not to happen again in the future?
Anyway,
it seems Mr.Mark is speechless right now, but simply put, Globill.net business is not reliable and looks suspecious, i enocourage all of you guys to use Asiapay.com … respected company!
I am using Setcom right now, but am experiencing some problems. One of my customers wanted to pay me for a third time, but could not, as he is asked many security questions like the last 4 digits of his drivers license and when he types it in, the system tells him that it is not the same as the previous time and he finally gave up.
I lost other clients as well, because they could not make a second payment although the first payment was excepted. I send Setcom an email and is awaiting their response.
Update!! Setcom DID respond VERY quickly and resolved the issue
It was my client using wrong login details!
Thankyou SETCOM!!!!!
Hi,
Well let me tell you all the Updates and you Judge PLEASE.
1- Globill.net Law says clearly: When payment pass 180 days, that means the payment is FINAL and CLEAR. and even if the Payment were fraud or not.
2- I kept asking Mark ( Globill.net ) the same question and he could not or did not want to answer.
Q: if the purchases were FRAUD, Why you have NOT send the money back to the clients, or Why you still keep the money with you and you do not want to pay us.
All the purchases done on my website passed more than 240 days, 180 is enough to clear the money, and I asked Mark to pay us the money and he does not want to, also i asked him to refund the money to the clients and he does not want, SO WHY YOU KEEP THE MONEY WITH YOU TILL NOW ? ANSWER ME MARK HERE BECAUSE YOU DO NOT ANSWER MY E-MAILS.
Mark sent me e-mail with final settlement, only 4 chargebacks my account received, and he marked the rest purchases as ( SUPECTED FRAUD ) and he does not want to pay my money, out of almost 2500 GBP he wanted to pay 92 GBP, how silly ?
If Mark does not want to take action and give me my money, I will head to Interpol office and tell the story and specially How he keeps the money with him, and if they did not help me I will head to CIA internet criminal Department.
if both did not work with me, I will use my own ways, take my words seriously !!!
Hazem Taha
Xtra Vouchers
Do they pay or not??? whom has done business with them and still doing business? I am about to try them and do not want screwed.
Thanks
HWH – are you referring to Globill.net?
yes I am talking about globill,did the ever pay you? I need a processor bad and losing about $12,000.00 usd a month–we own and operate foreign pharmacy directory’s that require membership management–what processor do can you recommened if any?
Thank You!
Well firstly I need to be clear that I have not personally done business with Globill.net and if you read through the comments you will see there has only been one person complaining on this blog about them and a representative from Globill.net did personally respond here in the comments (which to me is a very positive sign).
I have also been phoned by a Globill.net representative to complain about the comments here requesting that they be removed (so obviously they take their business seriously)… however I am still in no position to provide an edcuated opinion about their service, as I have not actually used it myself.
Yes, of course we pay out our clients, otherwise our reputation would be damaged and we would not be in business. Our platform has been processing transactions for vendors since 2002. If your intention as a merchant is to set up a bogus website to process stolen credit/debit card numbers oneself, then our systems will detect this and there’s a strong possibility that you wont be ‘paid out’. All genuine customer payments are settled. Our platform and anti-fraud mechanisms are now more sophisticated at detecting and combating fraud, making a repeat of what has been described above very unlikely. Our system will now sniff out and discard the rotten egg amongst the box.
Mark, once again thank you for being so quick to respond, I think this is a very positive sign for all your prospects and customers alike.
Mark,
If you could,can you leave me a contact number–I have already signed for your services,but would like to talk to you more about this and see what you can do for me.
You can email at our business email hester_laymance@yahoo.c dont want to fill all of it in.
Thank You
Billy
Our contact details are available under -Services -Contact Us of http://www.globill.net.
Thank you.
What appears to be missing still is accepting payments within Africa for online transactions. The African Virtual School is still searching for a solution to the question: How do you get Africans to be able to pay for online services. The present common method of depositing money into a bank account first is too cumbersome.