Payout issues in South Africa

[Magdel13]

We have been struggling for months to receive Airbnb payouts despite numerous calls with 'Airbnb support Ambassadors'

The payout info (bank details) is added (correctly) on the Airbnb platform, (for background, we run a business so we specify the business info), Airbnb verifies it a few days later. Airbnb tries sending funds. We receive an email from Bidvest Mandates and need to verify information. We input the info. But (every time) the information Bidvest/SARB receives from Airbnb, it specifies the 'recipient type' as a person instead of a business. This is despite us inputting all the business information and specifying that we run a business. The mandate gets rejected by Bidvest, and returns the payout to Airbnb. Then we get the same error, can't process payout and need to load the bank details again. We've done this more than 10 times and have also spoken to soooo many Airbnb support consultants. We are extremely frustrated. It's been months that we have been stuck in this loop. I've got all the emails and screenshots as proof. 

We are superhosts with 3 listings and have been hosting on Airbnb for over 3 years.

Airbnb have now said they will escalate my case to a supervisor. I threatened to contact the CEO because I don't know what other options there are. We are very frustrated with this situation. 

[David13016]

Same here... 

[Tjaart0]

I also have this exact same problem. I also emailed Bidvest on Friday and again today, but I am still waiting for their response.

[Joan2709]

@Magdel13 

If Airbnb doesn't show the owner name on your listings as a business name (that matches the Bidvest business name), then this will probably continue to be an issue. 

Not sure it's possible to change the owner name on a listing with Airbnb? Maybe another Host who has done this can respond here? I'm sure there are all kind of tax reporting issues with that, but don't know for sure.

I have seen alot of extra scrutiny lately from Airbnb on Listings using a South African Trust as the owner, but don't know if that has anything to do with your case.

[Magdel13]

Thanks for the message. The business name is inputted correctly by Airbnb. It's the recipient type that causes the problem. (Bidvest has also said via email that this is the problem why it gets rejected).

We went through the trouble of setting up a business, to keep it separate for tax purposes and to write down bnb expenses against it. 

[Joan2709]

@Magdel13 

I see....so just to clarify...

When you Go to your Airbnb Account under Personal Information, does it show your name Magdel, or the name of the business ADN?

Here is what I think is happening...just a guess.

I don't think Airbnb cares what bank account number/name you have in payouts, but just verifies the name of your Bank and bank info from the account info that is available at the time they verified pymt (ADN). If your name is on the Airbnb account as owner (not the business name), they will continue to transmit that as "recipient", as that is who they show as owner on the Airbnb listing.  

I was suggesting a possible solution to open a personal account under your name at the bank in order to process/receive payments from Airbnb. Then transfer funds to the business bank account after receiving them. No idea of the legal and tax consequences of doing that though.

[Chris464]

Exactly the same problem here. I had it with AZA Finance (who are the actual company working for Bidvest) back in October (https://community.withairbnb.com/t5/Help-with-your-business/AZA-finance-request-to-complete-SARB-rep...) and it took 3 weeks until it was miraculously resolved without explanation and I got my payment. But they have just sent me another mandate, even though it is less than 3 months since the last one. They only gave me one chance to enter the details and who knows what detail did not match what they had sent before they rejected it again. We are a business and live on a farm and the address details force one to put in a street number, although we don't have one. Now I am back where I was in October. AirBnB were hopeless in October and AZA Finance stopped responding to e-mails, so I have no idea how it got resolved in the end and how to make it right again this time. My bank details have not changed in the last 10 years with AirBnB and only this year with AZA Finance has there ever been a problem. It needs more people to complain to AirBnB to get this escalated and so they stop using Bidvest/AZA Finance and find a company that can actually make this work in South Africa.

[Magdel13]

Thanks Chris for sharing.

We had the same, last year where it miraculously got resolved. Also not sure how we are going to resolve this. Agree with Joan, there seems to be extra scrutiny more recently.

If you do manage to resolve it on your side, please share the solution. 

[Joan2709]

@Chris464 , @Magdel13 , @David13016 , @Tjaart0 

I follow short term rental trends and upcoming new regulations as part of my STR consulting business; mostly in the USA. I have been seeing that South Africa is actively considering national short term rental regulations. Been seeing alot more issues with KYC and payout issues for South Africa Hosts. Perhaps this is a precursor to increased STR regulations at the national level?

Since so many Hosts are having issues with no resolution regarding payouts and KYC issues in South Africa, you might wish to try and contact Airbnb's Regional Lead for the Middle East and Africa, Velma Corcoran. I believe you can try to reach her through LinkedIn, or maybe try velma.corcoran@airbnb.com. Not sure if she still has that position with Airbnb, but it's worth a try.

Here is the YouTube video of a podcast on the topic with her as the guest:

Airbnb and Regulations in South Africa

https://www.youtube.com/watch?v=ZelQ94qWfxA&t=648s