Paypal’s financial services scam

THE operative word in a lot of  South African big business ventures is racketeering. PayPal’s local partnership with FNB may avoid some of the fineprint in local legislation against organised crime by appearing to be a method of helping citizens to comply with forex laws, but the scheme is nothing more than a double-dipping scam.

That’s right, where is the OPT OUT from the service? Anyone with a PayPal account already gets billed everytime forex is deposited. This is known as a service.  FNB it appears, wanted in on some of the action. So what did the shysters do? They partnered their financial services to local PayPal customers on the basis of superstition without an escape clause.

For starters, there is nothing illegal stopping South Africans from holding foreign currency. The issue is how much and what size in terms of the amount of the transaction. This is not rocket science, buying goods in one country and importing them into another will already draw attention from South African Customs and Excise. Consumers will pay VAT on certain items, and on others, various surcharges according to an import schedule. We all know this, and you wouldn’t be reading this posting if you are the kind of person who thinks the Internet is a parallel universe when it comes to stuff like money and consumer goods. A person shifting money around to fund international terrorism isn’t going to use PayPal, at least not in the same way.

Here is the problem illustrated by my first experience receiving money via the PayPal service. My ill-gotten gains of $20 earned from writing an online article for an Indian website is not exactly the kind of figure that would draw interest from the Hawks or the FBI, so this story is not about some of those nasty rules governing money-laundering, which would mean amounts at least in excess of $10 000.

No, it is all about what happens to capitalism when a local bank starts hitting a foreign company and a misinformed company at that.

Take the way the unions went for Walmart, as if suddenly the rules for doing business in SA are different if you happen to eat hamburgers and sing Yankee Doodle.

Okay, nothing wrong with leveraging labour legislation and buying local, but look what happens to my $20 when us consumers are forced to turn over precious forex to the Rand economy because management at PayPal are impressed with FNB junkets.

Instead of helping Mr Joe Average to pay for a hard to find item that might make or break ones social life, and which is NOT AVAILABLE ANYWHERE IN SA, the piddling amount is hijacked by FNB in its enthusiasm to provide over R240 worth of forced accounting. Come again? You mean I received $20 and now owe FNB  at least R106.40? Yes after converting $20 into R133.60, I will end up with a great big minus in my account book, thanks to more service fees, more paperwork consuming nothing but R240 pa because the incentive to use the system just died.

Ergo receiving $$$$ via PayPal, less their service fees now equals additional service fees to FNB without them providing anywhere near a meaningful service. Top Up? Not likely, I already have a credit card and want to OPT OUT FROM A TOTAL FINANCIAL SERVICES  SCAM.

Here is the letter from PayPal, informing me that I basically  don’t enjoy any rights as a consumer, since lo and behold, the executive behind PayPal, Scott Thompson et al,  have decreed that I am a dumbass South African who wants to pay twice for everything I do. Why would anybody want to convert forex in this kind of low denomination anyway, and why can’t I simply spend it online like any normal people would do? If you are as mad as hell as I am, then write letters to Bonehead Thompson and the regulators in South Africa. For starters there is the Public Protector. Then there is the Advertising Standards Authority. A letter citing some law would be good, especially if it points out that nowhere, but nowhere does the letter below cite any relevant legislation. Plain superstition is what it is.

Dear David Lewis

Thank you for receiving your online payments with PayPal.

Now that you are using PayPal to receive payments, we want to be sure you're aware of the following important South African exchange control regulations:

Funds you receive via PayPal can't be sent to other PayPal users.

You need to withdraw the received funds from your PayPal balance to a South African bank account within 30 days of receiving these funds.

In order to help you quickly and easily withdraw funds from your PayPal account, we have partnered with First National Bank (FNB). Together, we created the Top Up and Withdraw service with PayPal. To register for this service, follow these 4 steps:

If you don't already have one, open a FNB account by visiting the online FNB Product Shop or the FNB Branch nearest you.

Once you have a FNB account, register for FNB Online Banking.

Log in to your Online Banking profile and register for the Top Up and Withdraw service with PayPal.

Link your verified PayPal account to your FNB Online Banking profile using the 'PayPal services' link on the 'accounts' tab.

Once you have registered, you can transfer funds (U.S. dollars) from your PayPal account to your qualifying FNB account in rands. Please note that FNB charges a small fee for each Withdrawal.

For more information regarding this service and how to register your PayPal account, go to:

You can also call FNB at 0861 PAYPAL (729725), or send an email to [email protected].



UPDATE After complaining endlessly on the FNB Paypal hotline, and raising the issues above,  I was finally allowed to open a Smart Account and link to my Paypal account. Even though several employees said it couldn’t be done. The basic savings account, unlike the cheque account they want you to have, has no monthly fee. Minimum deposit is R10. It takes up to four working days for the transfer to clear.

  1. my own
    Hey there I am so delighted I found your website, I really found you by error, while I was looking on Google for something else, Regardless I am here now and would just like to say kudos for a fantastic post and a all round entertaining blog (I also love the theme/design), I don’t have time to read through it all at the minute but I have bookmarked it and also added your RSS feeds, so when I have time I will be back to read a lot more, Please do keep up the superb work
    Admiring the time and effort you put into your site and in depth information you offer. It\’s great to come across a blog every once in a while that isn\’t the same unwanted rehashed information Excellent read! I\’ve saved your site and I\’m adding your RSS feeds to my Google account.Hi! I\’ve been reading your site for some time now and finally got the courage to go ahead and give you a shout out from Lubbock Texas! Just wanted to say keep up the good work
    I am really enjoying the theme/design of your website. Do you ever run into any internet browser compatibility issues? A couple of my blog audience have complained about my website not operating correctly in Explorer but looks great in Safari. Do you have any suggestions to help fix this issue
    I\’m curious to find out what blog platform you happen to be utilizing? I\’m experiencing some minor security issues with my latest blog and I\’d like to find something more secure. Do you have any suggestions?
    Hmm it seems like your website ate my first comment (it was extremely long) so I guess I\’ll just sum it up what I submitted and say, I\’m thoroughly enjoying your blog. I too am an aspiring blog blogger but I\’m still new to the whole thing. Do you have any points for inexperienced blog writers? I\’d really appreciate it.digging the template/theme of this site. It\’s simple, yet effective. A lot of times it\’s very hard to get that \”perfect balance\” between user friendliness and appearance. I must say that you\’ve done a amazing job with this. In addition, the blog loads super fast for me on Opera. Exceptional
    Do you mind if I quote a few of your posts as long as I provide credit and sources back to your website? My blog is in the very same area of interest as yours and my visitors would genuinely benefit from some of the information you provide here. Please let me know if this okay with you. Cheers
    Hey there would you mind letting me know which webhost you\’re utilizing? I\’ve loaded your blog in 3 completely different internet browsers and I must say this blog loads a lot faster then most. Can you recommend a good internet hosting provider at a reasonable price? Cheers
    Excellent website you have here but I was wanting to know if you knew of any forums that cover the same topics talked about here? I\’d really like to be a part of group where I can get feed-back from other knowledgeable people that share the same interest. If you have any recommendations, please let me know. Cheers!Hi! This is my 1st comment here so I just wanted to give a quick shout out and say I genuinely enjoy reading your articles. Can you recommend any other blogs/websites/forums that cover the same topics? Thanks for your time!problem on this blog; I also am a blogger, and I was curious about your situation; many of us have created some nice practices and we are looking to exchange methods with other folks, please shoot me an email if interested.article writer for your site. You have some really great articles and I feel I would be a good asset. If you ever want to take some of the load off, I\’d love to write some material for your blog in exchange for a link back to mine. Please shoot me an email if interested. Cheers!thought about including a little bit more than just your articles? I mean, what you say is valuable and everything. Nevertheless think about if you added some great images or video clips to give your posts more, \”pop\”! Your content is excellent but with images and videos, this website could certainly be one of the best in its niche. Very good
    Great blog! Is your theme custom made or did you download it from somewhere? A design like yours with a few simple tweeks would really make my blog stand out. Please let me know where you got your theme. CheersHowdy would you mind stating which blog platform you\’re using? I\’m looking to start my own blog in the near future but I\’m having a difficult time choosing between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your layout seems different then most blogs and I\’m looking for something completely unique. P.S Sorry for being
    Hey just wanted to give you a quick heads up. The text in your article seem to be running off the screen in Ie. I\’m not sure if this is a formatting issue or something to do with internet browser compatibility but I figured I\’d post to let you know. The style and design look great though! Hope you get the problem fixed soon. Cheerswritten content do you ever run into any problems of plagorism or copyright infringement? My site has a lot of unique content I\’ve either authored myself or outsourced but it seems a lot of it is popping it up all over the web without my permission. Do you know any methods to help protect against content from being ripped off? I\’d certainly
    Have you ever considered creating an ebook or guest authoring on other blogs? I have a blog centered on the same ideas you discuss and would really like to have you share some stories/information. I know my subscribers would value your work. If you\’re even remotely interested, feel free to send me an e mail.Hey! Someone in my Facebook group shared this site with us so I came to check it out. I\’m definitely loving the information. I\’m bookmarking and will be tweeting this to my followers! Outstanding blog and terrific design
    Great blog! Do you have any suggestions for aspiring writers? I\’m hoping to start my own site soon but I\’m a little lost on everything. Would you recommend starting with a free platform like WordPress or go for a paid option? There are so many options out there that I\’m completely overwhelmed .. Any ideas? Bless you!coder is trying to convince me to move to .net from PHP. I have always disliked the idea because of the costs. But he\’s tryiong none the less. I\’ve been using Movable-type on several websites for about a year and am concerned about switching to another platform. I have heard very good things about Is there a way I can transfer all my wordpress content into it? Any kind of help would be greatly
    Does your blog have a contact page? I\’m having trouble locating it but, I\’d like to shoot you an e-mail. I\’ve got some suggestions for your blog you might be interested in hearing. Either way, great website and I look forward to seeing it develop over time.shame you don\’t have a donate button! I\’d definitely donate to this superb blog! I suppose for now i\’ll settle for bookmarking and adding your RSS feed to my Google account. I look forward to brand new updates and will share this blog with my Facebook group. Chat soon!Ohio! I\’m bored to death at work so I decided to browse your blog on my iphone during lunch break. I love the knowledge you provide here and can\’t wait to take a look when I get home. I\’m shocked at how quick your blog loaded on my phone .. I\’m not even using WIFI, just 3G .. Anyhow, very good blog!Hey there! I know this is kinda off topic nevertheless I\’d figured I\’d ask. Would you be interested in trading links or maybe guest authoring a blog post or vice-versa? My blog goes over a lot of the same subjects as yours and I believe we could greatly benefit from each other. If you might be interested feel free to send me an e-mail. I look forward to hearing from you! Great blog by the way!Currently it seems like Movable Type is the preferred blogging platform out there right now. (from what I\’ve read) Is that what you are
    Terrific post but I was wanting to know if you could write a litte more on this topic? I\’d be very grateful if you could elaborate a little bit more. Cheers
    Hey there! I know this is somewhat off topic but I was wondering if you knew where I could locate a captcha plugin for my comment form? I\’m using the same blog platform as yours and I\’m having difficulty
    When I initially commented I clicked the \”Notify me when new comments are added\” checkbox and now each time a comment is added I get three emails with the same comment. Is there any way you can remove people from that service? Thank you!Hello! This is my first visit to your blog! We are a group of volunteers and starting a new initiative in a community in the same niche. Your blog provided us beneficial information to work on. You have done a extraordinary
    Hello! I know this is kind of off topic but I was wondering which blog platform are you using for this website? I\’m getting fed up of WordPress because I\’ve had problems with hackers and I\’m looking at alternatives for another platform. I would be fantastic
    Hey! This post could not be written any better! Reading this post reminds me of my previous room mate! He always kept chatting about this. I will forward this write-up to him. Pretty sure he will have a good read. Thank you
    Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point. You obviously know what youre talking about, why waste your intelligence on just posting videos to your blog when you could be giving us something enlightening to read?beach with my children. I found a sea shell and gave it to my 4 year old daughter and said \”You can hear the ocean if you put this to your ear.\” She put the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is completely off topic but I had to tell someone!Today, while I was at work, my sister stole my apple ipad and tested to see if it can survive a 25 foot drop, just so she can be a youtube sensation. My iPad is now destroyed and she has 83 views. I know this is totally
    I was curious if you ever considered changing the page layout of your website? Its very well written; I love what youve got to say. But maybe you could a little more in the way of content so people could connect with it better. Youve got an awful lot of text for only having 1 or two images
    Hello, i read your blog occasionally and i own a similar one and i was just curious if you get a lot of spam responses? If so how do you protect against it, any plugin or anything you can suggest? I get so much lately it\’s driving me insane so any assistance
    This design is incredible! You certainly know how to keep a reader amused. Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Wonderful job. I really enjoyed what you had to say, and more than that, how you presented it. Too cool!
    I\’m truly enjoying the design and layout of your blog. It\’s a very easy on the eyes which makes it much more pleasant for me to come here and visit more often. Did you hire out a developer to create your theme? Superb
    Hi there! I could have sworn I\’ve been to this blog before but after browsing through some of the post I realized it\’s new to me. Nonetheless, I\’m definitely glad I found it and I\’ll be book-marking and checking back often
    Hey there! Would you mind if I share your blog with my twitter group? There\’s a lot of folks that I think would really enjoy your content. Please let me know. Thank youHi, I think your blog might be having browser compatibility issues. When I look at your website in Firefox, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, very good blog!Sweet blog! I found it while surfing around on Yahoo News. Do you have any tips on how to get listed in Yahoo News? I\’ve been trying for a while but I never seem to get there! Many thanksHi! This is kind of off topic but I need some help from an established blog. Is it very hard to set up your own blog? I\’m not very techincal but I can figure things out pretty quick. I\’m thinking about setting up my own but I\’m not sure where to start. Do you have any tips or suggestions? Thanks
    Hi there! Quick question that\’s completely off topic. Do you know how to make your site mobile friendly? My website looks weird when viewing from my iphone. I\’m trying to find a template or plugin that might be able to correct this issue. If you have any recommendations, please share. Thanks!online reader to be honest but your blogs really nice, keep it up! I\’ll go ahead and bookmark your website to come back in the future. Many thanksreally like your blog.. very nice colors & theme. Did you design this website yourself or did you hire someone to do it for you? Plz answer back as I\’m looking to construct my own blog and would like to know where u got this from. kudosWow! This blog looks exactly like my old one! It\’s on a totally different topic but it has pretty much the same layout and design. Excellent choice of colors!Hey just wanted to give you a quick heads up and let you know a few of the pictures aren\’t loading correctly. I\’m not sure why but I think its a linking issue. I\’ve tried it in two different internet browsers and both show the same outcome
    Whats up are using WordPress for your site platform? I\’m new to the blog world but I\’m trying to get started and set up my own. Do you need any html coding knowledge to make your own blog? Any help would be greatly
    Howdy this is kind of of off topic but I was wondering if blogs use WYSIWYG editors or if you have to manually code with HTML. I\’m starting a blog soon but have no coding know-how so I wanted to get advice from someone with experience. Any help would be enormously appreciated!Hey there! I just wanted to ask if you ever have any trouble with hackers? My last blog (wordpress) was hacked and I ended up losing months of hard work due to no data backup. Do you have any solutions to protect against hackers?
    Hi! Do you use Twitter? I\’d like to follow you if that would be okay. I\’m absolutely enjoying your blog and look forward to new updates
    Hello there! Do you know if they make any plugins to protect against hackers? I\’m kinda paranoid about losing everything I\’ve worked hard on. Any recommendations
    Hello! Do you know if they make any plugins to assist with SEO? I\’m trying to get my blog to rank for some targeted keywords but I\’m not seeing very good results. If you know of any please share. Many thanks!blog and was wondering what all is needed to get setup? I\’m assuming having a blog like yours would cost a pretty penny? I\’m not very web smart so I\’m not 100% sure. Any tips or advice would be greatly appreciated. Cheershaving problems with the images on this blog loading? I\’m trying to find out if its a problem on my end or if it\’s the blog. Any feedback
    I\’m not sure why but this blog is loading extremely slow for me. Is anyone else having this issue or is it a problem on my end? I\’ll check back later
    Heya! I\’m at work surfing around your blog from my new iphone 3gs! Just wanted to say I love reading through your blog and look forward to all your posts! Keep up the outstanding
    Wow that was odd. I just wrote an incredibly long comment but after I clicked submit my comment didn\’t appear. Grrrr… well I\’m not writing all that over again. Regardless, just wanted to say wonderful blog!Hi there excellent website! Does running a blog similar to this require a large amount of work? I have absolutely no expertise in programming but I had been hoping to start my own blog soon. Anyhow, should you have any recommendations or techniques for new blog owners please share. I understand this is off topic nevertheless I just needed to ask. Many thanks
    Howdy! I know this is sort of off-topic but I needed to ask. Does running a well-established website like yours take a lot of work? I am completely new to blogging however I do write in my journal everyday. I\’d like to start a blog so I can easily share my own experience and thoughts online. Please let me know if you have any suggestions or tips for brand new aspiring blog owners. Appreciate it
    Hey I know this is off topic but I was wondering if you knew of any widgets I could add to my blog that automatically tweet my newest twitter updates. I\’ve been looking for a plug-in like this for quite some time and was hoping maybe you would have some experience with something like this. Please let me know if you run into anything. I truly enjoy reading your blog and I look forward to your new not know whether it\’s just me or if perhaps everybody else encountering issues with your site. It appears as though some of the text in your content are running off the screen. Can somebody else please provide feedback and let me know if this is happening to them as well? This may be a issue with my browser because I\’ve had this happen previously. Thanks
    First of all I would like to say wonderful blog! I had a quick question that I\’d like to ask if you do not mind. I was interested to know how you center yourself and clear your head prior to writing. I have had a difficult time clearing my thoughts in getting my thoughts out. I do take pleasure in writing but it just seems like the first 10 to 15 minutes tend to be wasted simply just trying to figure out how to begin. Any recommendations or tips? Kudos!

  2. […]just beneath, are quite a few absolutely not connected sites to ours, on the other hand, they are surely worth going over[…]

  3. I am very much pleased with the contents you have mentioned. I wanted to thank you for this great article. I enjoyed every little bit part of it and I will be waiting for the new updates.

  4. Fantastic goods from you, man. I’ve keep in mind your stuff prior to and you’re just too magnificent. I actually like what you’ve acquired right here, really like what you’re saying and the way through which you say it. You are making it enjoyable and you continue to care for to stay it sensible. I cant wait to learn far more from you. That is actually a terrific website.

  5. Fine create up … usually in no way respond to these questions, but I’ll now, thanks towards the important information.

  6. you’re in reality a excellent webmaster. The website loading speed is amazing. It sort of feels that you are doing any unique trick. Moreover, The contents are masterpiece. you have done a great activity on this matter!

  7. I pay a quick visit everyday some web pages and sites to read articles or reviews, except this web site presents feature
    based posts.

  8. Hi there! This post couldn’t be written any better!
    Reading through this post reminds me of my old room mate!
    He always kept chatting about this. I will forward this article to
    him. Fairly certain he will have a good read. Thank you for sharing!

  9. Way cool! Some very valid points! I appreciate you penning this article and also the rest of the website is
    also really good.

  10. Wow, fantastic blog layout! How lengthy have you been running a blog for?
    you made running a blog glance easy. The full look of your site is great, let alone the content material!

  11. Amazing issues here. I’m very glad to peer your post. Thank you a lot and I am
    looking forward to touch you. Will you please drop me a e-mail?

  12. This post is truly a pleasant one it helps new web people, who
    are wishing for blogging.

  13. What i don’t realize is if truth be told how you
    are now not actually much more neatly-liked
    than you might be right now. You’re so intelligent.
    You know thus significantly relating to this topic, made me personally believe it
    from so many varied angles. Its like women and men don’t seem
    to be involved except it’s one thing to accomplish with Lady gaga!
    Your individual stuffs outstanding. All the time care
    for it up!

  14. This story was a sweedt story because Everyne wass saying no no stay away
    that huse is hunted smells come out of that house andd the sound of laughter comes out
    of the hoouse and there aare ghost!!! In the ennd they had a pafty and the ghost
    left and where never saw agian just because the house wanted tto bee loved.

  15. I do not know whether it’s just me or if perhaps everybody else encountering issues with your site.

    It appears as though some of the written text in your content are running off the screen. Can somebody else please provide feedback and let me know if this is
    happening to them as well? This might be a issue with my
    internet browser because I’ve had this happen before.

  16. Greate pieces. Keep writing such kind of information on your site.Im really impressed by
    your blog.
    Hello there, You have done a greeat job. I will certainly digg it and personally recommend to my friends.
    I am sure they’ll be benefited from this web site.

Leave a Reply