By Tokiso TKay Nthebe
Have you ever opened your bank statement and gasped at the transaction fees?
If you have swiped your debit card while in South Africa, Namibia or Eswatini or shopped online, you might have unknowingly paid more than expected. For many working professionals and business owners in Lesotho, these costs are quietly eating into our budgets.
Let’s unpack what’s happening — and how you can protect your pocket.
A Shift in Cross-Border Transactions in the Common Monetary Area
If you’re used to travelling or shopping in South Africa, you’ve likely enjoyed the convenience of using your Lesotho debit card on South African point-of-sale (POS) machines or ATMs without worrying about extra charges. That’s because Lesotho is part of the Common Monetary Area (CMA), along with Eswatini, Namibia, and South Africa. These countries share the Rand (ZAR) as a common currency, and historically, cross-border transactions felt seamless.
But in September 2024, everything changed.
The introduction of new cross-border payment systems and national payment switch regulations now means foreign transaction fees apply — even within the CMA. Swiping your Lesotho Visa or Mastercard in South Africa, Eswatini or Namibia now counts as an international transaction. And yes, that comes with fees.
What Are Foreign Transaction Fees?
A foreign transaction fee (sometimes called a currency conversion fee) is a charge applied when you use your debit or credit card outside of your home country. These fees range between 1% and 5% per transaction. Previously, most Basotho didn’t have to worry about this when transacting in ZAR — now, that’s no longer the case.
What Now Counts as a Foreign Transaction?
Here are common transactions that now attract extra charges:
- Swiping your Lesotho debit card on a South African POS machine.
- Withdrawing cash from a South African ATM.
- Online purchases from platforms like Takealot, Superbalist, or Netflix subscriptions.
- Debit orders for international services like Apple Music or Facebook Ads.
Even though you’re paying in Rands, the system now treats this as converting from Maloti to ZAR — triggering a fee.
How to Minimize These Costs
Here’s what smart financial planning in Lesotho looks like in 2025:
- Know your bank’s fees
Download your bank’s pricing guide and review it carefully. Not all cards charge the same foreign transaction fees. - Limit cash withdrawals from foreign ATMs
These can carry multiple fees, including service and currency conversion charges. - Convert currency before travelling
Exchange your Maloti for Rands before leaving Lesotho. It may be safer and cheaper than frequent card swipes. - Open a South African bank account
If you frequently travel or shop across the border, this can significantly cut costs. - Keep your spending local when possible
Support Lesotho-based vendors and platforms where you can. - Review subscription payments
Consider paying with a card issued in the same country as the service provider, or use alternative local methods where available.
Why Financial Education Matters Now More Than Ever
The cost of living is rising, and with these new banking fees, it’s clear that financial literacy is no longer optional. Understanding how and where your money is going helps you make informed choices — whether you’re a salaried professional, a hustling entrepreneur, or a business owner looking to grow.
Searching online for a “financial advisor near me” is a great step, especially if you’re based in Lesotho and want personalised guidance.
Take Charge of Your Financial Future
Whether you’re planning for your next business trip to South Africa, managing your online subscriptions, or investing for the future, understanding the hidden fees in your daily transactions is a small but powerful part of your financial planning in Lesotho.
🔎 Visit TKO Money Adventures Academy for more relatable and practical content to help you stay financially informed and empowered.
Stay trailblazing — and always transact wisely.
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