ABSA Retail and Business Bank Banking Proposal for the Fuel Industry - January 2013
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ABSA Retail and Business Bank
Banking Proposal for the Fuel Industry
January 2013
2
Table of Contents
ABSA Fuel Industry Overview 4
Section A: ABSA Lending Solutions and Recommended Finance Structures
Recommended Lending Solutions and Finance Structures 6
Special covenants, terms and conditions of funding 7
Documentation required to process an application for finance 8
Section B: ABSA Business Banking Solutions
Cash Management and Payments Solutions 10
Absa Corporate Credit Card Payment Solutions 11
Absa Payment Acceptance 11
Investments 12
Financial Services 13
Workplace Banking Solutions 16
ATM Solutions 17
Section C: ABSA Retail and Business Bank Pricing Proposal
Pricing Declaration 19
General Banking Services Fees 19
Business Integrator Fees 19
Business Internet Banking Fees 19
Card Acquiring/ Payment Acceptance Fees 19
Credit Card Fees 19
Disclaimer 19
3ABSA Fuel Industry Overview
As an important part of our commitment to the growth and prosperity of the South African economy, Absa
Bank recognises the vital role played by the entrepreneur in creating new wealth and opportunities.
The franchise team operates across a number of business categories, viz. grocery retail, restaurants, quick
service restaurants, entertainment and leisure, automotive and fuel, just to name but a few.
The fuel industry is a key strategic industry for both Absa and Barclays. In partnership with the Fuel Retail
Industry, Absa seeks to add value and deliver efficient low risk solutions through our passionate and
dedicated relationship team. We believe that across the Absa Group, we have an excellent understanding of
the Fuel Retail Industry, and are therefore confident that both parties enjoy a seamless relationship through
our one point of entry and three relationship touch points, namely the Relationship Executive, the
Operational Banker and the Customer Services Consultant, as we strive to provide you with innovative and
tailored solutions.
We believe in partnering with our Fuel Retail Industry customers to achieve their growth perspectives
through the understanding of the environment in which they operate. Sound knowledge of our customers’
industries enables Absa to offer best-of-breed products and global solutions needed to meet the Fuel Retail
Industry customer needs, leaving them to focus on their core business. Absa’s infrastructure is geared to
service fuel retail businesses of all sizes from small to corporate.
Our extensive network of Industry Specialists and Relationship Executives team up to provide the customer
with the best the bank has to offer. With many years’ experience in the franchise and Fuel Retail Industry,
Absa has established a credible record among many of South Africa’s top fuel wholesale and retail
companies. We believe in developing partnerships with our customers by ensuring that we have the footprint
and products to provide a solution for their expansion across South Africa and into the continent.
Absa offers Fuel Retail Industry customers a range of market-leading operational, lending and investment
products. Our solutions are aimed at optimising banking value, reducing operational risks and enhancing
cost-efficiencies. Among our market leading operational products are cash management and payment
solutions, merchant services, electronic banking, business insurance and advice, commercial asset finance
and commercial international banking.
We have put together a dynamic team focused on the Fuel Retail Industry with the aim of understanding
your specific industry, where it’s heading, and using that knowledge to deliver the most competitive products
and improve customer relations. We believe in actively working with clients to develop individual solutions
that meet the industry’s unique challenges today while providing for a better tomorrow.
In summary, we aspire to partner with the franchise and fuel industry by providing a value-oriented offering:
i. Cost effectiveness through process optimisation ;
ii. Market related pricing for market leading products;
iii. Reliable and secure banking procedures;
iv. Reduced operational risk
For more information please contact us at 011 350 9727 or at franchise@absa.co.za.
4Section A: ABSA Lending Solutions and Recommended Finance Structures
Recommended Lending Solutions and Finance Structures
Absa understands the Fuel Retail Industry and the needs of Fuel Retail customers and in response have
established the following finance structure to assist the Fuel Retailer with his or her finance needs.
Financing a new Fuel Retail Business (no property)
Setup cost, including the initial franchise fee/ key money, variable depending on the size of the outlet
Recommended unencumbered own contribution required is 40% - 50% of total setup cost (including
working capital and stock guarantee), dependent on the business’ ability to service a gearing of 50% -
60%
Bank guarantee/ Absa Insurance Guarantee in favour of the Oil Company in respect of the fuel supply
to be made - variable depending on volumes pumped
Working capital requirement (overdraft facility) determined by a number of variables and calculated
and considered on an individual basis
Rent guarantee variable, and dependent on oil company/ landlord requirement
Maximum term of finance 60 months
VAT refund in the 3rd month, if applicable, will be used to reduce the bank facilities granted
Financing an existing Fuel Retail Business (no property)
Recommended unencumbered own contribution 40% - 50% of total financing need, dependent on the
business’ ability to service a gearing of 50% - 60%
Bank guarantee/ Absa Insurance Guarantee in favour of the Oil Company in respect of the fuel supply
to be made - variable depending on volumes pumped
Working capital requirement (overdraft facility) determined by a number of variables and calculated
and considered on an individual basis
Rent guarantee variable, and dependent on oil company/ landlord requirement
Maximum term of finance 60 months
Financing the revamp of an existing Fuel Retail Business (no property)
Scope of the revamp is site specific. Cash flow projection (considering the turnover increase after
revamp/ upgrade) to be provided with each application for finance.
Unencumbered own contribution will be determined by the scope of the revamp, and dependent on
repayment ability of the business
6Special covenants, terms and conditions of funding
Financial conditions
Interest cover to be at least 1.5 times, measurable after 12 months of 1st trading cycle
Interest bearing debt not to exceed original level of debt
Absa bank to have first right of refusal for any new interest bearing debt
No dividends to be declared without consent from Absa bank, which will not be withheld unreasonably
Non-standard conditions
Shareholders loan accounts not to be withdrawn without consent from Absa bank
No change in shareholding without prior consent from Absa bank
Disclosure document received and accepted (where applicable)
Franchise or Supply agreement received and accepted by Absa Legal Services
Applicant to provide proof of retail licence, or temporary licence issued by the DOE before facilities are
paid out/ made available
Copy of site licence, issued by the DOE, to be provided when financing a fuel retail property
Security
Collateral security requirement will be determined by the risk of the application for finance
All directors/shareholders/members/partners must sign unlimited surety ships
Cession of all loan accounts, or which may become effective in future, must be in place at the time of
financing
Key man and/or Life insurance must be obtained to cover at least 100% of total facilities granted. All
policies must be ceded to and cessions to be registered in favour of Absa.
Short term insurance must be obtained to cover at least 100% of total value of equipment. Policy must
be ceded and cessions to be registered in favour of Absa
Kindly note that the proposed funding solutions by no means constitute an approval or undertaking to
finance, but merely records the basis upon which we are prepared to consider the financing of a fuel retail
business. Covenants and approval conditions other than mentioned in this document may be imposed,
depending on the risk of the application for finance.
7Documentation required to process an application for finance
1. CV’s and copies of ID’s on all members / shareholders / directors
2. Marriage certificates / ANC Agreements / Divorce Orders
3. Statement of assets and liabilities on all members / shareholders / directors
4. Registration certificates if business trades as CC, Pty Ltd or Trust
5. Application documents done by each member/shareholder/director / third party sureties
6. Documentary proof of source of own contribution
7. Cash flow projections for at least one year, including income statement & balance sheet
8. Comprehensive business plan
9. Copy of the lease agreement if property is leased or title deed if property is owned
10. Copy of signed Buy/Sell or Purchase Agreement
11. Copy of signed franchise/ supply agreement after transaction was approved
12. Copy of retail licence, or temporary licence issued by the DOE before facilities are paid out/ made
available to client
13. Financial statements if purchasing an existing business
14. Up to date Management Accounts, if signed financials older than 6 months
15. Signed financial statements on your other existing business(es), if applicable
16. Monthly forecourt volumes and convenience store turn over for a period of at least 3 years
17. Six months Bank Statements of business trading account
18. List of equipment to be financed, including rand value per article, and a breakdown of the utilisation of
the finance
19. Letter from Oil Company stating that the applicant has been assessed in terms of its usual requirements
20. Any other information applicable to the Financial Intelligence Centre Act No 38 of 2001
8Section B: ABSA Business Banking Solutions
Cash Management and Payments Solutions
Cash Management Solutions is a streamlined service that facilitates secure, efficient and risk-reduced cash
deposit management.
Cash is the lifeblood of your business but also poses a security risk as the handling thereof comes at a cost.
Fraud, theft, cash-in-transit heists and skill levels of staff forces one to the realisation that moving cash is not
your core business.
Absa holds partnerships with Deposita Cash Device Supplier who uses the latest tamper-proof technology to
protect and safeguard your cash deterring criminal activity.
Absa has 12 fully-fledged cash centres across the country as detailed below. The first five facilitate “walk-in”
deposits (these are deposits made directly at the cash centre by the client and not by CIT carriers). All the
cash centres have facilities to accept deposits by CIT carriers:
Ormonde Jhb Bloemfontein
Pretoria Port Elizabeth
Kempton Park Brackenfell
Vaal Cape Town – Goodwood
Witbank Newcastle
Klerksdorp Durban
Deposits can also be made at the following SBV cash centres, partially owned by Absa:
Nelspruit George
East London Pietermaritzburg
Polokwane Rustenburg
Pretoria
The Absa Cash Centre operates on extended hours in order to address the needs of corporate clientele who
need to be able to deposit the cash portion of their turnover.
The hours of operation are: Monday-Saturday: 06:00-18:00
Benefits:
End to end cash handling solution every day of the week, including public holidays
Same Day Value enhancing liquidity and no claw back (deposit is guaranteed)
Outsourced risk (onsite, cross pavement & in-transit)
Outsourced model (Absa manages strategic alliance between all Vendors)
Reduces admin and recounting of cash - enhanced in-store cash up time and reduction in overtime
Enhances the reconciliation process – simplified at H/O, brand, store, day and cashier levels
Live web-based portal & system can be integrated
Cross pavement insurance can be cancelled
Devices can be upgraded to newer technology and software upgrades included in maintenance fees
Possible saving on head count
10Client Contact Centre is operational 7 days a week, 365 days a year, from 06h00 to 22h00.
Maintenance technicians operate between 07h00 and 21h00, 7 days a week, 365 days a year. Technician
vehicles are tracked and monitored in real-time by the Client Contact Centre for performance management.
4 x approved Cash-in-Transit carriers:
Protea Coin
SBV
G4S
Fidelity
Absa Corporate Credit Card Payment Solutions
Absa Card has a comprehensive range of card solutions that can be tailored to suit the needs of your
business. We offer an integrated approach to corporate expense management, which includes business
travel and purchasing services. We also offer a consolidated corporate payment system that provides world-
class service at the lowest possible cost and risk. The Absa Corporate Card program will assist in helping
your company achieve the highest possible savings whilst continually delivering service excellence.
The Absa Corporate Card program is a comprehensive expense management system designed specifically
for travel and entertainment-related operating costs.
Absa Corporate Card Product Offering:
Absa Corporate Card
Absa Garage Cards
Absa Travel Lodge Card
Absa Purchasing Card
Absa Payment Acceptance
Absa Payment Acceptance offers point of interaction facilities and value added services that enable
merchants to:
Accept credit, debit, fleet, garage, RCS, medical, all buy-aids and certain gift cards
Provide a fully certified desktop or mobile card acceptance terminal or Pin Pad
Range of Value Added Services which includes:
- E-Top Up – Prepaid Airtime
- Batchlink – Process credit card payments in a batch format
- Reconciliation File – Detailed reconciliation of card transactions
- Contactless Card acceptance in the Quick Store
E-Commerce – Via approved Absa CSP’s which enable the merchant to process internet payments
11PYC (Pay in your Currency) – Allows card holders an option to choose to pay in their own currency at
point of purchase (currently the only bank that can provide this service)
Settlement Terms
We offer settlement within 24 hours, provided the batch settlement amounts are credited to an Absa account,
and that the batch settlement file is transmitted before our daily cut-off time (21:00). This excludes Sundays
and public holidays.
Why Absa Card Acquiring?
Enviable reputation in the card acquiring market with over 28 years of experience
Current market share per volume of approx 32%.*
Largest acquiring house in CEMEA** for acquiring VISA cards
Total number of merchants in excess of 40,000
Industry leading system uptime
* Source: Visa International
** Central Europe, Middle East and Africa
Investments
At Absa Business Bank we cater for all your Investment needs, whether you require immediate access to
your excess operating cash or are looking for a store area for a couple of months – we have a solution for
you. There are three broad categories of investment accounts that vary based on the liquidity required.
1. Demand Accounts – Provides Immediate Access to Funds
Call account
The Call product is a demand investment product which allows instant access to funds. Being a demand
product, it is used as a holding account for excess operating cash. Funds are moved from the business
operating/current account to the call account and vice-versa. Payments cannot be made from this
account as payments must be made from your operating account.
Investment Advantage
This is a Money Market type investment account offering one of the highest interest rates in the market
for this type of investment. It is designed to offer excellent stable returns linked to Prime.
Liquidity Investment Account
This product provides instant access to funds and offers a competitive interest rate which is linked to the
prevailing prime rate. It provides customer centric rates (based on your portfolio holding). Interest is
calculated daily, capitalised monthly and can be paid out on a date selected by the customer.
122. Notice Accounts – Provides Limited/Partial Access to Funds
32 Day Notice Account
This is a short-term investment product aimed at investors who want a high return, with the benefit of
access to their funds at short notice. This product also allows for additional deposits at anytime and
partial notice may be given i.e. you do not need to close the account when placing notice. The interest will
be paid monthly and can be transferred to your operating account.
Split Notice Account (70/30 and 90/10)
The split notice products give you the best of both worlds as you are being rewarded from a rates
perspective for tying in your funds for 60 days similar to a fixed deposit but with the convenience of being
able to withdraw a portion of your funds on demand.
3. Term Accounts – Fixed Amount, Fixed Term, Fixed Rate
Fixed Deposit Account
A Fixed Deposit is an investment deposit product where a lump sum is invested for a fixed period at a
fixed rate. The customer has a wide range of investment periods to choose from: 8 days to 60 months.
Interest rates are guaranteed for the duration of the investment period therefore offering stable returns at
competitive rates.
Absa Prime Linked Account
A Linked Rate Deposit comprises of a single deposit, for a fixed term at an interest that is linked to the
prime rate. This means that the interest rate on your investment fluctuates with the prime rate movement
in the market.
We also offer Shariah-compliant products. Please ask your banker for more information on these offerings.
Financial Services
Absa offers both traditional and customised financial service solutions. These include tailor-made solutions
to meet your specific risk mitigation & wealth creation needs. Because each product is flexible, you can be
sure you’re getting the solution that is right for your business.
General Business Cover for:
Assets (buildings, contents of buildings, stock, machinery, vehicles, etc.)
Gross profit income and additional costs
Legal liabilities (general, property owners, tenants, product, defective work, employers, motor vehicle
liabilities, etc.)
Employee personal accident
13Specialist Business Cover for:
Guarantees of consignment stock, contract performance and lease deposits
Contractors for contract work, general and licensed plant and specialised electronic equipment
Contract liabilities
Transporters using heavy commercial vehicles and cargo in transit
Specialised Services include personal cover for:
Life risk, Illness, Disability, Wealth creation, Retirement, Will and Estate planning
Business continuity
1. Commercial Short Term Insurance for Fuel Retailers
Insurance cover details
The policy offers multi-peril, one-stop insurance on service stations, dealerships, workshops, service
centres, fast food outlets, car wash, convenience shop and other related businesses
Special extensions not covered in other standard products, competitive rates and quality service
Retailer peace of mind that all insurance needs and risks are being covered
Standard insurance cover includes:
Fuel Leakage (damage caused by leakage of fuel at the insured premises, including the loss of fuel)
Contamination of fuel (loss of fuel in underground tanks due to contamination as a result of storm,
wind, water, hail or snow)
Subsidence and landslip extension in respect of fuel in underground tanks (damage caused by
subsidence and landslip including the loss of fuel in such tanks)
Refrigerated stock extensions (loss or damage to stock in refrigeration or cooling units at the insured
premises as a result of deterioration or putrefaction and caused by failure or non-operation of the unit)
And many more enhancements in other insured sections
The policy covers the following items (but not limited to):
Fire (material damage) – Fuel leakage extension, Refrigerated Stock extension, Fuel Contamination
and Subsidence and Landslip extension
Office Contents, Business Interruption, Electronic Equipment, Machinery Breakdown
Theft, Money (Including credit card fraud and cash in transit cover)
Glass, Fidelity, Goods in Transit, Business All Risks, Accidental Damage
Public Liability (general & tenants, products liability, defective workmanship, wrongful arrest, food &
drink extension and employee negligence) and Employer’s Liability
Stated Benefits / Group personal accident (Death on duty on forecourt employees and cashiers)
Motor Section (Motor Traders Internal & External)
142. Retail Fuel Guarantee
Benefits to the retailer:
New Retailers don’t have to finance, or tie up valuable security in providing bank guarantees
Existing Retailers can substitute bank guarantees and inject cash into the business or reduce liabilities
Existing Retailers on ‘hard cash’ can now afford to give the Oil Company a guarantee to trade on ACB/
anumatic debit or ‘top up’ their existing guarantees to meet current oil company requirements
The monthly premium is an Operating Expense and thus written off against taxable income
Opportunity cost of having released your cash or securities
Payment for fuel after delivery, improving cash flows
What does it cover and values?
The guarantee covers trading debts such as fuel products, lubricants and rentals. Current maximum
guarantee value issued by Refine is R750,000.
Top up or change in values
Yes – should you not want to change your existing bank guarantee arrangement you can ‘top-up’ your bank
guarantee with our guarantee. Guarantees can also be increased / reduced on request on approval by the oil
company of the revised value.
Requirements
Personal and business surety (no attachment of any collateral security – a standard surety agreement)
Consent to view only the trading account of the business for Refine’s risk monitoring purposes, such
as tracking unpaid debits (no authority on account whatsoever).
How does it work?
Application is made to Refine for the guarantee, via an ABSA Insurance & Financial Adviser.
Normal route – Guarantee is issued by Refine directly to the Oil Company.
Back-to-back route (Shell & Caltex) - On approval and signature to Refine legal documentation, Refine
will issue the Absa Insurance Company guarantee to Absa Bank Limited. This guarantee will serve as
collateral for the bank guarantee to be issued to the Oil Company by Absa Bank. The Bank then
follows its internal process and documentation, and on completion of this process Absa Bank will issue
a bank guarantee to the Oil Company in the format approved.
Cost
Premiums can vary according to risk profile with current rates ranging from 4.5% to 6.0% per annum on the
guarantee value. Policy fees and VAT are added to the risk premium for final monthly debit amounts.
15Applying for the bank guarantee
Refine will require the applicant to complete the application form and provide requested supporting
documents and details about the business.
New Retailers should provide minimum 12 months projections, the previous owners last audited
financials, as well as appointment letters from the Oil Company and details/ confirmation of how the
business is being funded (own contributions, loans, overdrafts, etc.)
Existing Retailers should provide latest financials, updated management accounts and confirmation of
existing overdraft facilities, etc.
Workplace Banking Solutions
Absa Workplace Banking offers packages of banking products and service channels to the employees of the
organisation.
Key features
Free Absa Financial Education & Training programme
Absa Cheque Value Bundles
Personal loans - Rate discount of 0.5%
Micro loans - Rate discount of 1%
Home Loans and Vehicle Finance - Rate discount of 0.1%
Negotiable insurance, savings and investment solutions
Customer benefits
Value to the Employer
Requires no extra cost
Enhances existing benefits packages
Offers convenient banking solutions
Ensures worker productivity
Provides financial education to full workforce
Adds value to & supports organisations’ competitive edge
Value to the Employee
Access to Absa solutions on a favourable basis
On-site convenience and safety
Boosted employee morale
Expert product advisers on call
Improved financial decision making abilities leading to long term financial health
16Does this product have a unique benefit compared to competitor products?
The Absa Financial Education & Training programme is recognised as the benchmark in Barclays
Global.
Absa Workplace Banking was the first of its kind in South Africa, providing it with experience still to be
gained by competitors and new entrants.
ATM Solutions
Absa have the leading ATM Market share in South Africa with more than 8,000 ATM’s and Solutions across
the country.
Benefits to you the business owner
Increased number of customers leads to increased profit
Can increase turnover between 6% and 15%
Competitive advantage/differentiation from competitors
Increased convenience and customer satisfaction
What is provided?
Full Branded Absa ATM, ABSA Signage (internal and external)
Maintenance of ATM and Consumables
Insurance – Cash and ATM
Installation and shop fitting (excluding wet works)
ABSA Signage (internal and external)
There are two ATM options available. Please note that there are different qualifying criteria for each model.
1. Full Service Model
The ATM is replenished and maintained by ABSA and a fixed monthly rental is payable to the franchisee.
These ATM’s are currently performing on average ± 6,000 transactions per month
Advantages of this model include the ability to continue focusing on one’s core business; guaranteed
optimal service levels; additional revenue streams and increasing foot traffic into the outlet.
2. Self-Cashed Model
In this instance the ATM is replenished and maintained by your company or franchisee. A rebate per
successful cash withdrawal is then payable to the franchisee. The above rebate is payable from the first
successful cash withdrawal.
Advantages of this model include reduced risk in terms of cash held on site, savings in terms of cash
handling and cash transportation fees as well as providing one with an additional income stream.
17Section C: ABSA Retail and Business Bank Pricing Proposal
Pricing Declaration
We understand the very specific pricing challenges you face, and that every cent saved can make a
significant difference to your long-term profit.
Which is why we have introduced the concept of “relationship pricing” for our premier clients.
To put it simply, we have taken a holistic view of all our products and services used by Fuel Retailers and
priced our solutions using the “economies of scale” concept.
The quoted prices are based on our understanding of the Fuel Retailer’s requirements and the information
that has been supplied to date. Should the Fuel Retailer, for any reason whatsoever, decide to utilize the
services of another financial institution or service provider and the net effect of it resulting in a material
decline in the income of the Bank, the Bank reserves the right to revisit its quoted prices in order to protect
itself against any losses.
Therefore we are able to deliver the most appropriate service at the most efficient price for your business.
Prices for services and products would normally be adjusted annually on 1 January or earlier should the
need arise. In the latter instance, Absa will provide the franchisor with 30 days written notice before the
changes are implemented. The reviewed pricing will be based on changes in Absa’s delivery cost structure
and/or any significant changes in trading patterns within your franchise system.
The pricing will be made available to Fuel Retailers who apply in writing to have the negotiated group pricing
structure implemented, and who thereafter run their accounts in a responsible manner and within their
negotiated facilities.
In the event of a franchisee contravening the terms and conditions attached to their account and facilities,
and/or their risk profile deteriorate, Absa will reserve the right to amend the pricing for that franchisee.
Fees/prices indicated in this proposal in respect of services rendered by BankServ (formerly known as ACB)
are not in the discretion of Absa and such price increases will therefore be determined by BankServ.
Please note that these products and services are applicable to all Fuel Retailers for as long as they remain a
part of the Fuel Retail industry. Should a retailer for whatever reason withdraw from the Fuel Retail industry,
a new arrangement between that business and Absa will have to be entered into.
Our pricing structures are always inclusive of VAT (currently 14%), unless otherwise stated. Any additional
costs for services not covered in this document, will be available on request.
Please note that the pricing offered to the Fuel Retailers is the result of Absa’s market-related investigations
and assumptions based on our understanding of your business model. We therefore will be happy to enter
into negotiations on specific issues/concerns of pricing, should they arise.
For more information please contact us at 011 350 9727 or at franchise@absa.co.za
191. General Banking Services Fees
1.1. Transactional Fees
Product Description Pricing Details (Incl. VAT)
Cheque Account Service Fees R12.00/ R2.10/ R24.00
(R2.10 per R100 or part thereof, with a minimum of R12.00 and a
maximum of R24.00 per cheque). A minimum monthly service fee of
R64.50 per cheque account applies.
Cheque Books 100 page books R 80.90
200 page books R112.55
Deposit Books A5 Medium R 74.55
A4 Large R 77.70
Stop Payment Fee R70.00 per item stopped
Cheque Marked for Payment R70.00 per cheque
External Stop/ Debit Orders Min is R5,00, plus R1 per R100.00 or part thereof, maximum R25.00
Internal Stop/ Debit Orders R5.70
Dishonoured/ returned payment R125.00
Miscellaneous Services
Excess of Limits Accounts with more than 15 excesses per year will be charged at an
interest rate of minimum Prime + 3%, and standard service and cash
deposit fees, irrespective any preferential group rates that may apply.
Accounts with more than 5 dishonours (R/D’s) per year will be charged
an interest rate of minimum Prime + 5%, and standard service and
cash deposit fees will apply.
Facility Review/ Initiation Fee A facility initiation fee is payable at the time of granting the facility, and
a review fee when it is reviewed on an annual basis. An initiation fee of
1%, with a minimum of R1,000.00, will be levied. A review fee of 0,3%,
with a minimum of R1,000.00 per Business Account will be levied.
Valuation fees i.r.o. fixed property is not included in this.
Local Documentary Products
st
Against full cash cover A minimum fee of R605 on establishment, for the 1 six months, and a
minimum fee of R300 for second and subsequent 6-month periods or
part thereof thereafter.
st
Against part cash cover Commission of 2.86% on establishment, for 1 six months (minimum of
R605), and 1.43% for second and subsequent 6-month periods
thereafter (minimum of R300), payable in advance.
st
Against unsecured guarantee Commission of 2.86% on establishment, for 1 six months (minimum of
R605), and 1.43% for second and subsequent 6-month periods
thereafter (minimum of R300), payable in advance.
All amendments, extensions and cancellations will attract a minimum
fee of R300.
201.2. Cash Management Fees
Cash Deposit Fee
Cash deposits made using the Deposita Automated Solution include Minimum cash T/O Cents/ R100
same day value and transfer of risk. per annum Incl. VAT
R0 ≤ R150m 29c
It is assumed that 95% of deposits will occur into the device. It is
understood that coin deposits or manual banking will require branch >R150m ≤R250m 28c
banking. >R250m ≤R350m 27c
Please note: The cash deposit base fee will not be applicable for >R350m ≤R450m 26c
device deposits. > R450m 25c
Deposits using Absa Branch (Manual) 35c per R100
Deposits using Cash Centres (Manual) 29c per R100
Deposits using a drop safe 55c per R100
The 55c/ R100 rate for cash deposits via Drop Safe, will be applied to accounts where the average of non-
device related cash deposits are below R5,000 and cash deposits made using a Drop Safe.
Provision for specie: cents to be added to agreed cash deposit fee Additional 0,5c per R100
Provision for wages: cents to be added to agreed cash deposit fee Additional 0,5c per R100
Cash Deposit Base Fee
Branch Cash Deposits R6.50 per deposit
Drop Safe R6.50 per deposit
Cash Centre Cash Deposits R5.50 per deposit
Device Canister Cash Deposits R0.00 per deposit
Cheque Deposit Fee
This fee will cover any deposit including cheques only, or cheques and cash. The standard rate will be
R12.50 per deposit containing cheques. Where cash and cheques are included in the same deposit, the
cheque deposit fee will be payable, together with the applicable cash deposit and cash deposit base fees
relating the cash portion.
Cash deposits via investment products, mortgage loans and other non-current accounts
A cash deposit fee of R4.85 plus 1.15% of the cash amount deposited will be charged.
Cash Devices
Once-off Fees Excl. VAT VAT Incl. VAT
Installation(includes 1st training session) R 1,300.00 R 182.00 R 1,482.00
Delivery Fee (per device) Excl. VAT VAT Incl. VAT
Gauteng R 355.00 R 49.70 R 404.70
MP, North West, Limpopo, Free State, KZN R 630.00 R 88.20 R 718.20
Eastern Cape, Western Cape, Northern Cape R 850.00 R 119.00 R 969.00
Monthly Rental (4 year rental agreement) Excl. VAT VAT Incl. VAT
Deposita 1200 Plus (1,000 notes per CIT pickup) R 1,443.45 R 202.08 R 1,645.53
Deposita 2400 Plus (2,000 notes per CIT pickup) R 1,854.64 R 259.65 R 2,114.29
Deposita 3600 Plus (3,000 notes per CIT pickup) R 2,392.96 R 335.01 R 2,727.97
Deposita 4000 Plus (3,500 notes per CIT pickup) R 2,394.24 R 335.19 R 2,729.43
Deposita 6000 Plus (5,250 notes per CIT pickup) R 2,942.81 R 411.99 R 3,354.80
21Rental per canister (min 4 day's canisters) Excl. VAT VAT Incl. VAT
Canisters for 1200, 2400 and 3600 device R 70.49 R 9.87 R 80.36
Canisters for 4000 and 6000 device R 119.20 R 16.69 R 135.89
Monthly Maintenance, Communication, Device Excl. VAT VAT Incl. VAT
Risk Cover & Canister Seals per device
Deposita 1200 Plus R 1,499.00 R 209.86 R 1,708.86
Deposita 2400 Plus R 1,794.00 R 251.16 R 2,045.16
Deposita 3600 Plus R 2,364.00 R 330.96 R 2,694.96
Deposita 4000 Plus R 2,494.00 R 349.16 R 2,843.16
Deposita 6000 Plus R 2,889.00 R 404.46 R 3,293.46
Please note: A final cash management services quote will be provided once we receive all the fuel retailer
information associated to cash management.
2. Business Integrator
2.1. Business Integrator Online
Excl. VAT VAT Incl. VAT
Initial Registration R1,894.74 R265.26 R2,160.00
Business Integrator Online – Low volume fee structure < 260 transactions per month
Monthly fee R395.61 R55.39 R451.00
Payments
Credits (PAAF – Payments Against Funds Available) R5.61 R0.79 R6.40
Charge per transaction exceeding R5million R42.46 R5.94 R48.40
Immediate interbank payment transaction fee R42.46 R5.94 R48.40
Absa listed beneficiary payment transaction fee R5.61 R0.79 R6.40
Matched beneficiary payment transaction fee R5.61 R0.79 R6.40
Statement Download (per statement record) R0.07 R0.01 R0.08
Business Integrator Online – High volume fee structure > 260 transactions per month
Monthly fee R665.79 R93.21 R759.00
Payments
Credits (PAAF – Payments Against Funds Available) R4.56 R0.64 R5.20
Charge per transaction exceeding R5million R42.46 R5.94 R48.40
Immediate interbank payment transaction fee R42.46 R5.94 R48.40
Absa listed beneficiary payment transaction fee R4.56 R0.64 R5.20
Matched beneficiary payment transaction fee R4.56 R0.64 R5.20
Cheque Authorisation (per cheque) R2.98 R0.42 R3.40
Statement Download (per statement record) R0.07 R0.01 R0.08
22Account Holder Verification (per account enquiry) R4.35 R0.61 R4.96
Accounts
Per own account per month R10.44 R1.46 R11.90
Per third party account (consent) per month R18.16 R2.54 R20.70
System Managers and Operators
Per system manager and operator (per month) R21.05 R2.95 R24.00
2.2. Business Integrator Specialised Services
Branch Deposit Identifier
Excl. VAT VAT Incl. VAT
Monthly Service Fee R51.82 R7.25 R59.07
Transaction charge (260) – per deposit
Free Format R1.68 R0.24 R1.92
CDV/ Special R3.17 R0.44 R3.61
Electronic Deposit Identifier
Monthly Service Fee R49.88 R6.98 R56.86
Transaction Charge (Internal) R2.98 R0.42 R3.40
Transaction Charge (External) R2.98 R0.42 R3.40
2.3. Business Integrator – Maintenance, Support & Training Fees
Maintenance
Pre-defined accounts capturing – per account R36.67 R5.13 R41.80
Additional accounts for statement delivery R36.67 R5.13 R41.80
Transaction tracing R118.25 R16.55 R134.80
(Audit trails and bank statements per request < 12 months)
Transaction tracing R537.37 R75.23 R612.60
(Audit trails and bank statements per request > 12 months)
Client Support
Password reset/ re-issue R85.88 R12.02 R97.90
Re-issue of VAT invoice R85.88 R12.02 R97.90
Installation and Maintenance Support
Per hour or part thereof, including travel time R541.23 R75.77 R617.00
(This fee excludes accommodation costs. If applicable, this
will be payable by the client.)
Class Room Training
Per morning or afternoon session per delegate (minimum of R561.40 R78.60 R640.00
5 attendees)
233. Business Internet Banking (BIB)
Transaction Description Fee Amount
Monthly fees
Internet Banking
(Enterprise/ Commercial/ Mid-Corporate) R110.00/ R210.00/ R260.00
Cellphone and Telephone Banking No charge
Prepaid Top-Up Purchases
Internet and Cellphone Banking No charge
Bill and Beneficiary Payments
Internet and Cellphone Banking R6.55
Immediate Interbank Payments R12.00 + R0.90/ R100 (max R65.00)
CashSend Transactions R7.90 + R1.15/ R100
Fund Transfer
Internet and Cellphone Banking R6.55
Balance Enquiries
Internet and Cellphone Banking No charge
Transaction History
Internet and Cellphone Banking No Charge
Archived Statements for Internet Banking R6.00 per statement
Proof of Payments, Reminders and Notifications
Proof of Payments and Reminders
SMS or E-mail R0.75
Fax R3.40
Internet Banking Notifications (incl. RVN)
SMS or E-mail No charge
Administrative Fees
Stop Payment Instruction R70.00
4. Card Acquiring/ Payment Acceptance
Card Acquiring Pricing
Existing clients
New clients (Excl. VAT)
(Excl. VAT)
Forecourt &
Forecourt Convenience Store
Convenience Store
Hardware rental
Pin Pads R140.00 R140.00 R140.00
Absa EFT POS Terminal R250.00 R250.00 R250.00
(standalone terminals)
Mobile Terminal Rent R370.00 R475.00 R475.00
MDF (minimum discount fee) N/A R525.00 R525.00
Implementation fee N/A R525.00 R525.00
24Forecourt &
Card commission (Excl. VAT) Forecourt Convenience Store
Convenience Store
Debit cards 0.65% 0.65% 0.80%
Credit cards 1.85% 1.74% 1.90%
Pricing Terms and Conditions
1. The term of the agreement shall commence from date of live rollout of first store. Dates to be agreed
and included in the Merchant Agreement between both parties.
2. Rental of equipment and merchant support fees will increase annually on the anniversary month of the
agreement by CPI, as published by Statistics SA in the preceding month.
3. Pricing quoted in this proposal is subject to any fluctuation (Increase or Decrease) in basis points in the
relevant interchange model.
4. Any changes to regulations and the findings from the Competition Commission on the card industry and
National Payments System will be enforced. This includes any changes and or additions to current
interchange levels.
5. All Card Scheme rules (Master Card & Visa) as they are implemented and/or revised will be
implemented accordingly.
6. Additional Terms and Conditions as prescribed in the PIN Pad and Merchant Agreement will apply.
5. Credit Card Fees
Transaction Description Fee Amount
Initiation Fee R180.00
Lost Card Administration Fee R109.20
Lost Card Replacement Fee R109.20
Same-day Card Delivery Fee R294.45
Face-to-face Delivery Fee – Business Cards R157.50
Branch Counter Cash Deposit R5.00 base fee + R1.15 per R100 or part thereof
Absa ATM Cash Deposit R1.13 per R100
Absa ATM Cash Withdrawal R3.95 + R1.13 per R100
Absa-supported ATM Cash Withdrawal R7.15 + R1.13 per R100
SASWITCH ATM Cash Withdrawal R10.15 + R1.13 per R100
Branch Counter Cash Withdrawal (Local) R27.81 + R1.18 per R100
Overseas ATM/ Counter Cash Withdrawal R47.00
Absa ATM Account Payment R7.15
ATM Fund Transfer R3.85
Branch Counter Fund Transfer R27.00
Absa ATM Balance Enquiry R2.95
Absa ATM Mini Statement R2.00
Absa-supported ATM Balance Enquiry R2.95
SASWITCH ATM Balance Enquiry R3.35
Garage Card Transaction Fee R4.05
Credit Card “Swipe” Purchase Fee No Charge
Notify Me SMS/ e-mail messages R0.55
25Transaction Fee Amount
Absa Silver Absa Gold Absa Absa Cointel
Corporate Purchasing
Card Fee R12.60/month R200.00 p.a. R220.00 p.a. R240.00 p.a. R12.80/month
Garage Card Fee R10.00/month R120.00 p.a. R120.00 p.a. R120.00 p.a. N/A
Transaction Fee N/A N/A N/A R2.50 N/A
Please note that a currency conversion fee of 2.5% (of rand value of the transaction) applies to all
international credit, cheque or Maestro/Visa card transactions.
Payment Terms
Full settlement of outstanding balance is payable 25 days after billing, hence the effect of 55 days interest
free credit.
Implementation
Upon completion of the necessary documents and applications, the respective credit approval is
sought.
Upon receipt of approval the respective cards are delivered via courier to the address as stipulated
on the application form within 5 days of the application being approved.
Cards are issued for a 2 year period and replacement cards are issued 30 days in advance of the
expiry date. Post sales process also includes training and configuration of all cardholders, VIS/MIS
users.
Disclaimer
The opinions and recommendations expressed in this presentation are made by Absa Bank Limited. Neither
Absa Bank Limited nor any officer, employee, director, agent, subsidiary or holding company shall be liable
for any direct or consequential damage or loss suffered as a result of any action taken by you in respect of
this presentation.
Prior to investing or transacting, you should fully understand the services and products and any risk (and
issues) related to or associated with them. The investment/transaction/products/services may involve a high
degree of risk including, but not limited to, the risk of (a) low or no investment returns, (b) capital loss, (c)
counterparty or issuer default, (d) adverse or unanticipated financial market fluctuations, (e) inflation and (f)
currency exchange.
The value of any investment/transaction (product) may fluctuate daily as a result of these risks. Absa Bank
Limited cannot predict any (actual) results, performance and/or financial returns and gives no assurances,
warranties or guarantees in this regard. Any information on past financial returns ,modelling or back-testing
is no indication or guarantee of future returns or performance.
Copyright in this presentation is owned by Absa Bank Limited. No part of this presentation may be
reproduced in any manner without prior written permission of Absa Bank Limited. The contents of this
presentation are proprietary to Absa Bank Limited and are being made available in a strictly confidential
basis. At no stage may any disclosure be made regarding contents of this presentation without the prior
written consent of Absa Bank Limited.
Absa Bank Limited is an Authorised Financial Services and Credit Provider, Reg No NCRCP7”
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