Why Are You Still Paying SWIFT Fees on Your Forex Transactions?

The global payments company 80eight is transforming the forex industry by dramatically lowering costs in two significant ways: abolishing SWIFT fees for the next three months and reducing banks’ typically high ‘spread’ fees by as much as 50%.

“It’s frustrating for people sending money abroad to encounter such steep fees accumulating. Initially, there are SWIFT fees ranging from R500 to R1,000, followed by the bank’s buy-sell spreads, which can reach up to 2.5% of the transaction total, or even higher. This excludes extra charges such as commissions or service fees,” explains Faadil Moti, CEO of 80eight.

“South African forex fees are considerably higher than those in other parts of the world, and this has gone unchallenged for decades. We aim to change that.”

The R500-R1,000 SWIFT fee is significant, especially for those frequently engaging in cross-border transactions. This unavoidable charge is shared among the involved banks—unless you opt for 80eight, which will absorb SWIFT fees for three months.

Understanding Bank Charges

Many consumers are unaware of how banks determine their forex service prices. Research by 80eight shows that most individuals do not realize the substantial forex costs they incur, as the main expenses are often concealed within the buy-sell spreads offered by banks.

A Moneyweb analysis indicates that top banks charged between R0.40 and R1 for every US dollar exchanged, resulting in costs ranging from 2.2% to 5.5%, excluding SWIFT and other bank-imposed fees.

While corporate clients can often negotiate lower fees, individuals and SMEs typically accept whatever rates are offered.

“These costs are simply too high and, in our opinion, are not defensible,” Moti asserts. “Competition in this sector is lacking, and we’ve proven that we can cut these costs by 50%. So, why can’t the banks do the same?”

80eight charges no commissions or administrative fees, and with the removal of SWIFT fees for three months, clients can save even more. SWIFT, the Society for Worldwide Interbank Financial Telecommunication, connects over 11,000 financial institutions in 200 countries and facilitates international transactions through a network of intermediary banks, each taking a portion of the fees.

“Banks impose high fees under the assumption that customers won’t protest,” Moti notes. “Our approach is set to redefine the industry. There’s no need to switch banks to use our services, and we don’t apply double charges. By pooling transactions, we are able to secure better rates for both individuals and businesses.”

80eight leverages cutting-edge fintech solutions, including cryptocurrency channels, to deliver swift, cost-effective transfers. “Clients are concerned with results, not the technology,” Moti emphasizes. “We enable cross-border payments at a fraction of the usual costs and do so quickly.” Every client is paired with a dedicated consultant to oversee payments, avoiding tedious conversations with chatbots or waiting for support over the phone.

Clients are matched with a specialized consultant for payment tracking and oversight, eliminating the inconvenience of dealing with automated systems or long wait times for customer support.

No Need to Switch Banks

The excellent news is that 80eight offers these reduced rates without requiring clients to switch banks. “This is a common question we receive,” Moti clarifies. “Clients don’t need to leave their current banks, and they won’t face double charges—they pay only once. We can achieve this due to the efficiencies and advanced technologies integrated into our systems.”

Financing Options for SMEs

80eight also provides financing solutions for SMEs aiming to grow or trade. This includes access to a network of suppliers and potential customers throughout the Middle East, Asia, and Europe.

Access to 30,000 International Businesses

“We recognized the need to expand beyond just facilitating cross-border payments; some of our business clients need short-term funding to grow. Consequently, we developed solutions to help them scale their operations, as well as introduce them to our vast network of over 30,000 international business contacts,” Moti shares.

All these features are readily available through the 80eight app.

Brought to you by 80eight.

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