I cringed and flinched a week ago when I sent someone $100, only to discover an alarming $7 had been deducted from my account. I asked myself, Ecocash though convenient is it cheaper than other means of sending money like ZIPIT or RTGS, (the way of sending money, not the currency). I have been monitoring my own transactions between my Steward bank iSave Account and my Ecocash.
On Sending Money
Using a minimum amount of $100, Ecocash will charge $5.01. Then, the government will also take $2 tax a total of $7.01. Using the Steward bank iSave account, ZIPIT will take $2.10 and $2 tax a total of $4.10
Buying stuff or paying for a service.
Using Ecocash to pay for a service worth $100 would see you paying $2 tax and charge of $2.36. The transaction costs you $4.36. For Steward bank, the iSave account that I use will deduct $2 tax and $1.95 a total of $3.95.
On Cash Out And Cash Withdrawals
Cash out at a registered agent will see you paying a total of $7.11. Withdrawing cash from the Steward bank according to Batsi is 1% that’s a dollar for $100 then $2 tax.
The cumulative difference for these transactions is surprising. I did quick math and discovered that if you transact for any amount in the 100 dollar range, twice a week, for all the three transactions above with Ecocash you will pay a total of $55.44. If you do the transactions via Steward bank, you will pay a total of $33.15. There will be a variance of $21.93 a week and a total of $87.72 a month in transaction charges only.
Which way Is practical?
While it seems like a big save using the banks, it’s also not feasible to queue in the bank every week just to withdraw money as sometimes there is a withdrawal limit and long queues. Some service providers also don’t have Point of Sale (swipe) machines. This compels individuals to go the Ecocash way to get their goods or services. All things being equal, I recommend using swipe which is relatively cheaper than Ecocash. After all, it’s you who knows what works for you. Something that works for you won’t work with me, SIMPLE!!