[ad_1]
The South African Tax Service (SARS) says it will suspend the use of checks starting next year, as the country’s banks increasingly move away from the payment option.
“Following the decision of the South African banks to suspend checks as a form of payment, SARS has decided not to accept checks as a form of payment at customs ports of entry as of December 14, 2020 and at banks as of December 1 January 2021, “said the revenue collector. said.
SARS said that taxpayers and customs customers who need to pay SARS can use one of the following options:
- eFiling;
- Electronic Funds Transfer (EFT);
- At a bank branch (cash and EFT). All payments can be made at any branch of ABSA, Capitec, FNB, Nedbank or Standard Bank.
- Travelers entering and leaving the country will still be able to pay in cash at the port of entry.
“Taxpayers are reminded that all payments must contain the correct beneficiary identification and payment reference number (PRN). Detailed payment information is available on the SARS website, ”he said.
Almost every major bank in the country has announced that they plan or have already moved away from checks as a payment option.
The move has been accelerated thanks to various limit reductions, the continued reduction in check usage during the Covid-19 lockdown period, as well as the adoption of cheaper and digital alternatives by customers.
Checkbooks are rarely seen in today’s society, and the convenience of contactless cards takes over the payment space. Historically, clients could have paid up to R5 million with a check, the bank said.
However, this limit has been lowered over time due to general use. The latest limit reduction went into effect on May 1, 2020, which now only allows payments of up to R50,000.
Standard Bank said it will stop using all checks on December 31.
“We will align ourselves with a coordinated industry phase-out plan to assist customers in the transition, especially given the business process changes that will need to take place across all stakeholders. Our customers will have between August and the end of December 2020 to adopt new payment methods, ”said Busi Radebe, head of payments at Standard Bank.
FNB is also in the process of phasing out the checks, with issuance ending on December 31, 2020.
Kenneth Matlhole, Head of Business Products at FNB, says that as of January 1, 2021, FNB customers will no longer be able to write checks. “However, we will continue to honor check payments from other banks until further notice,” he said.
Matlhole said that over the years, FNB has encouraged clients to migrate to safer, faster and more cost-effective payment mechanisms such as Electronic Funds Transfer (EFT), mobile payments, online banking and card payments.
Nedbank intends to phase out the use of checks altogether over the course of 2021.
Anton de Wet, director of clients for Nedbank Retail & Business Banking, said that most clients have migrated to more secure, convenient and cost-effective card-based and digital payment solutions.
“We have noticed a steady reduction in requests and use of check stubs and checks issued by banks.
“The Covid-19 outbreak has greatly exacerbated the decline in check usage and even with increased economic activity under relaxed lockdown conditions, we have seen past users move away from checks to digital payment solutions and with card, ”he said.
Read: South African Banks Are Ready To Extend Covid-19 Loans Until Jan 2021
[ad_2]
