Payment Gateway Fee Calculator
Calculate processing fees, fee caps, effective percentage rates, and net merchant payouts across Nigerian payment gateways using pure integer financial arithmetic and independently verified standard pricing data.
Transaction Parameters
Benchmark gross transaction costs, fee caps, and net merchant payouts across verified gateway pricing rules.
Monnify
Verified ScheduleFee Structure & Applied Rules
- 1.50%
- Maximum fee cap: ₦2,000.00
Paystack
Verified ScheduleFee Structure & Applied Rules
- 1.50% + ₦100.00 fixed fee
- Fixed fee waived below ₦2,500.00
- Maximum fee cap: ₦2,000.00
Flutterwave
Verified ScheduleFee Structure & Applied Rules
- 2.00%
- Maximum cap reached (₦2,000.00)
Financial Transparency & Methodology
- Standard Published Rates: Calculations reflect standard published fee schedules verified directly from official provider documentation for Nigeria. High-volume merchants may qualify for custom negotiated pricing.
- Taxes (VAT): Nigerian Value Added Tax (7.5%) is legally charged on payment gateway processing fees and is billed separately by providers.
- Settlement & Disbursements: These figures represent collections processing fees. Outbound payout/disbursement transfer charges to Nigerian bank accounts (e.g. ₦10–₦50) are billed upon withdrawal.
- Integer Precision: All fee calculations execute with pure integer minor-unit arithmetic (kobo) via the Tofali domain calculation engine.
Understanding Nigerian Payment Gateway Fee Structures
1. Percentage Fees & Basis Points
Payment gateway variable rates are represented as basis points (bps), where 100 bps equals 1.00%. For example, a 1.50% domestic card fee is calculated as 150 basis points. All calculations in Tofali execute in integer minor units (kobo for NGN) to prevent floating-point rounding discrepancies (ADR-006).
2. Fixed Fee Components & Conditional Waivers
Some payment channels attach a flat fixed fee per transaction (for example, ₦100.00 on Paystack domestic cards). Crucially, some gateways implement conditional fee waivers: for instance, Paystack waives the ₦100 flat fee for transactions under ₦2,500.00. Tofali models this threshold explicitly so micro-transactions reflect accurate net costs.
3. Maximum Fee Caps & Minimum Floors
To keep high-value processing competitive, Nigerian gateways impose a maximum fee cap (typically ₦2,000.00 for domestic card processing and bank transfers). When the combined percentage and fixed fee exceeds this limit, the processing fee is clamped strictly to the cap. Conversely, minimum fee floors guarantee a minimum baseline charge where applicable.
4. Net Merchant Settlement Payout Formula
The final settlement received in your merchant bank account is calculated as:
Net Settlement = Gross Transaction Amount − Estimated Processing Fee5. Value Added Tax (VAT) & Payout Charges
Nigerian tax regulations require a 7.5% Value Added Tax (VAT) on payment gateway processing fees. Additionally, outbound payout/disbursement transfers from your merchant wallet to a commercial bank account incur small standard settlement charges (typically ₦10 to ₦50 per batch transfer) separate from payment collection fees.
6. Published Standard Rates vs. Negotiated Enterprise Terms
All figures in this calculator represent standard published commercial schedules verified directly against official provider documentation. High-volume merchants and enterprise platforms often negotiate custom interchange rates and lower caps directly with gateway account managers.