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Things Not To Do With Your Credit Cards

Credit cards are helpful access to credit but also for shopping and paying online.

But there are strict rules for using them outside South Africa (or making purchases from overseas entities).  If you break these rules, you could lose money or face fines.

Here are four important things you’re not allowed to do with your credit card.

Four No No’s

No Gambling: You can’t use your credit card to gamble or bet on international websites. This includes online casinos, sports betting, and lotteries.

If you try, any winnings you make will be taken away and sent to South Africa’s Gambling Board.

 

Limited Spending Overseas: South Africans have a limit of R1 million per year for spending outside the country, called the Single Discretionary Allowance (SDA).

This includes using your card for online shopping or withdrawing cash overseas. If you spend more than this, you’ll face penalties.

 

No Big Purchases: You’re not allowed to pay more than R50,000 in one transaction for things like online subscriptions, imports, or services unrelated to travel.

And trying to get smart and splitting a big payment into smaller amounts to get around the rule is also not allowed. If you don’t follow customs and duty rules, you could end up being fined.

 

No Funding Accounts: Even if you are convinced that Doge coin is heading o the moon, you can’t use your credit card to add money to foreign accounts or wallets, like those for investments or cryptocurrency.

Instead, you need to use approved methods, like cross-border transfers through a bank where the tax man can keep a close eye on what you are up to.

Don’t Get Into Trouble

It is hard to know all the laws around using credit cards and even though these things might be hiding somewhere in the small print of the documents the bank gave you when you opened your account it is easy to make mistakes.

Mostly these laws are there to limit your exposure (and the bank’s) to overspending overseas. They are in place for your benefit even if they might not feel like it if you have a lot of money to move around or the overwhelming urge to “bet it all on this hand”.

So, now that you know about these credit card “no no’s” you can avoid any nasty penalties or fines.