So you’ve recently opened your very own Etsy shop, listed some items and have linked your account to PayPal. But, now how do you actually get the money into your South African Bank account? It is a South African exchange control regulation that money received as payment on PayPal cannot be used to fund other purchases. All funds MUST be moved into a South African Bank Account within 30 days of receiving the money.
Fortunately, FNB has teamed up with PayPal to make this process a little easier. You don’t have to have an FNB bank account, but you do need to sign up for an FNB online banking profile. The money will then be drawn out of PayPal, via FNB, into your South African bank account.
Linking PayPal to an FNB online profile:
First go to www.fnb.co.za and click Register in the top bar, then select Register for PayPal.
Next, select For my business, followed by the option that best suits your situation and fill in your details.
FNB will then ask you to submit supporting documents via email or at the bank and will then confirm that your FNB Online Banking Profile is active.
Once active it is important to remember to draw your funds within 3o days. (Tip: Do it once a month on a set day)
Drawing funds from PayPal into your South African Bank Account:
Go to www.fnb.co.za and sign in.
The first time you log in select Forex > Menu (left hand side) > PayPal Services > Menu (left hand side again) > PayPal profile. You can then enter your bank account details for any South African bank, as long as you own the account.
Now to withdraw the money each month select Forex > Menu (left hand side) > PayPal Services (middle) > Menu (left hand side again) > Withdraw from PayPal (left hand panel).
You should then have a screen that looks like the picture below. Here you will select the bank account that you want the money to be paid in to (you will have supplied these details during registration). Fill in the amount to withdraw. This should be the balance that is available in your PayPal account (which can be found by logging in to www.paypal.com).
You then need to select the “Reason for transaction”. Scroll through the list and see which one best fits the items that you are selling on Etsy. For me this is “203 – Rights assigned for using patterns and designs”, as I’m selling digital items, but for those with physical goods it’s likely to be “101 -11 – Advance payment – goods exported via the SA Post Office”.
Click “Get Quote”, “Continue” and then “Confirm” once you’ve checked the details and ticked all appropriate boxes.
You will then be re-directed to a PayPal site and asked to log in and confirm details there again. You’ll then be redirected back to FNB Online where it will process the payment. Do not be concerned if it goes all the way to “Attempt 3 of 3”, as long as at the end it says “Thank you! Your transaction has been submitted for processing”. And then, done! Allow a few days for the money to reach your bank account.
Thanks for following along on the first 3 posts of Etsy How To. We’ve learnt how to open an Etsy Shop and list your first few items, how to open and link a PayPal account to Etsy and now how to draw that money out of PayPal to your own bank account.
I’d love to have a look at your new Etsy shop, so leave the URl in the comments. Questions? Please ask!
Deborah
Xx
You can view my Etsy shop here:
Zoë says
Hi sorry I’m still a bit confused. So I don’t need a FNB back account to use their online banking and can just transfer the money from PayPal into a capitec account?
Deborah says
Hi Zoe. You do not need an FNB account, just an FNB online banking profile.
Kelly says
Hi ,I’m having some trouble withdrawing funds from PayPal to my bank account via Fnb however when I try to withdraw it gives me a notification saying ‘sorry we can’t complete your purchase at this time ‘ I keep getting the same message ,do you have any experience with this?
Deborah says
Hi Kelly. Sorry, I haven’t experienced this. Best would be to phone FNB and try get some help. It may be that you need to have a document verified or that some info is missing somewhere.
Angela says
Hi I have made quite a bit selling on ebay since May.How do get all that money if it was made more than 30 days?
Deborah says
If you haven’t withdrawn the money it will all still be available to you. It will stay in your PayPal account until it is withdrawn. It is just the rule in South Africa that it should be withdrawn within 30 days. I don’t think there’s actually anything anyone can do about it, but if you’re in SA it’s the right thing to do 🙂
Sophia says
Hello,
do you have to open a company to sell on Etsy or can you do that as an individual? Do you have to declare your Etsy income to SARS?
Does Etsy offer a report how much income you made?
Kind regards,
Sophia
Deborah says
Hi Sophia
You do not need to register a company to sell on Etsy. You can do it in your personal capacity as a sole proprietor. If your total income (from all income streams) is above the tax bracket then you definitely need to declare Etsy as part of your income to SARS. If you’ve never earned above the tax bracket and therefore have not completed a tax return before, then you will not need to declare it. As soon as you expect to go above the threshold, you should register as a provisional tax payer and submit it to SARS. Tax can be a confusing issue and I’d recommend speaking to a tax consultant for more info.
Etsy would show you how much you’ve earned, but you should also keep track of your PayPal withdrawals through the FNB portal. That will give you your income in Rands.
Hope that helps!
Deborah
Natanya says
Hello. Could you kindly advise on delivery instructions… How does this work after people have purchased an item in your shop. Your first 3 instructions were brilliant-thank you.
Just need clarification on how deliveries are handled or set up etc
Thanks
Deborah says
Thanks so much! Unfortunately I don’t handle delivery of any physical goods, as my products are all digital. Sorry!
Melissa says
Good Day
I am currently struggling to withdraw funds out of FNB as I am not sure what option to pick when it comes to “reason for transaction. My brother has sent me money due to me and it doesn’t seem to give you the appropriate option when money is just sent your way from family . What would be the most appropriate to choose under these circumstances .
Deborah says
Hi! I’d use 401-Gifts
Fatima says
Hi.can I use my capitec account? It’s a debit card. To receive PayPal payments. I have already created a fnb online profile. I’m just a bit confused as to whether the debit card will be okay.
Deborah says
Hi Fatima. Absolutely! You shouldn’t need a credit card at all. The money will be withdrawn from PayPal into your account and then you can withdraw cash as normal or pay for things via EFT. Your next step will likely be to take your documents to FNB to verify your account.
Paypaluser says
How long does the cash take to be deposited once you’ve requested a withdrawal?
Deborah says
Hey! It normally takes a few days to a week max. Unfortunately it’s the only way to do it at the moment in SA, so we just have to wait.
maya says
how does shipping work?
Deborah says
Hey. Currently all my Etsy items are instant digital downloads, so I don’t have to ship anything. I have previously sold items that needed shipping though. If shipping from somewhere like South Africa to the US you just have to be very upfront about the fact that it will take longer to arrive. Another option is that you can limit the countries that you ship to on Etsy. The items well then only show up for the people who are easy to ship to. Hope that helps!