Payment Gateways Commission Rate 2025 UAE: Guide
Guide to UAE payment gateway commission rates 2025. Compare Network, Magnati, PayTabs, Telr, Stripe. Optimize costs & automate tracking.
Quick Answer
Payment gateways commission rate 2025 UAE typically ranges from 1.5% to 4.5% per transaction, with additional monthly fees (AED 99-2,500), setup fees (AED 500-6,000), and processing fees (AED 0.50-2.20 per transaction). Major UAE payment gateways include Network International (1.5-3.5%), Magnati (1.8-3.8%), PayTabs (2.0-4.0%), Telr (2.49-2.69%), and Stripe (2.9% + AED 1). Commission rates vary based on transaction volume, business type, payment method (card-present vs. card-not-present), and card type. ReconcileOS provides automated commission tracking and reconciliation for all UAE payment gateways, ensuring 100% accuracy in fee calculation, identifying overcharges, and optimizing payment processing costs for businesses across the Emirates.
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The UAE payment gateway market has experienced significant growth, with the digital payments sector projected to reach USD 39.13 billion by 2027, growing at an 8.02% CAGR. As businesses increasingly adopt digital payment solutions, understanding payment gateways commission rate 2025 UAE becomes critical for financial planning, cost optimization, and maintaining competitive pricing strategies.
Payment gateway commission rates in the UAE vary significantly based on multiple factors, including the gateway provider, transaction volume, business type, payment method, and card type. With UAE businesses spending an average of 2-4% of revenue on payment processing fees, selecting the right payment gateway and negotiating optimal commission rates directly impacts profitability and operational efficiency.
This comprehensive guide examines payment gateways commission rate 2025 UAE across major providers, factors influencing rates, negotiation strategies, and how automated reconciliation platforms like ReconcileOS can help businesses track, verify, and optimize payment gateway commission costs.
Major Payment Gateways Commission Rates in UAE 2025
The UAE payment gateway landscape includes both regional and international providers, each offering distinct commission structures and fee models. Understanding these rates helps businesses make informed decisions about payment processing partners.
1. Network International Commission Rates
Network International is one of the largest payment processors in the UAE and Middle East, offering comprehensive payment solutions for businesses of all sizes.
- Transaction Commission: 1.5% to 3.5% per transaction
- Monthly Gateway Fee: AED 500-2,000
- Setup Fee: AED 1,000-5,000 (one-time)
- Processing Fee: AED 0.50-1.50 per transaction
- Chargeback Fee: AED 50-150 per chargeback
- Best For: High-volume merchants, multi-location businesses, enterprises requiring comprehensive payment solutions
Network International offers volume-based pricing, with businesses processing 10,000+ transactions monthly qualifying for rates as low as 1.5%. The provider supports card-present and card-not-present transactions, with higher rates (2.0-3.5%) for e-commerce and online transactions.
2. Magnati Commission Rates
Magnati, the payments subsidiary of First Abu Dhabi Bank (FAB), provides integrated payment solutions leveraging banking infrastructure.
- Transaction Commission: 1.8% to 3.8% per transaction
- Monthly Gateway Fee: AED 600-2,500
- Setup Fee: AED 1,500-6,000 (one-time)
- Processing Fee: AED 0.75-1.75 per transaction
- Chargeback Fee: AED 60-175 per chargeback
- Best For: FAB bank customers, businesses requiring banking integration, enterprises seeking bundled financial services
Magnati offers seamless integration with FAB bank accounts, providing faster settlement times and integrated financial reporting. The provider's commission rates are competitive for businesses with existing FAB relationships.
3. PayTabs Commission Rates
PayTabs is a leading UAE-based payment gateway specializing in e-commerce and online payment processing.
- Standard Plan: USD 50/month + 2.85% + AED 1 per transaction
- Advanced Plan: USD 50/month + 2.85% + AED 1 per transaction (for volumes over AED 20,000)
- Enterprise Plan: Custom rates for volumes over AED 50,000
- Setup Fee: AED 500-3,000 (one-time)
- Chargeback Fee: AED 50-125 per chargeback
- Best For: E-commerce businesses, online retailers, SMEs requiring straightforward pricing
PayTabs offers transparent pricing with no hidden fees, making it attractive for small and medium businesses. The provider supports multiple currencies and payment methods, including credit cards, debit cards, and alternative payment methods.
4. Telr Commission Rates
Telr provides tiered payment gateway solutions designed for businesses of different sizes and transaction volumes.
- Entry Level: AED 349/month (no transaction commission)
- Small Level: AED 149/month + 2.69% + AED 1.00 per transaction
- Medium Level: AED 99/month + 2.49% + AED 0.50 per transaction
- Enterprise Level: Custom rates based on volume
- Setup Fee: AED 1,000-4,000 (one-time)
- Best For: Growing businesses, startups, businesses with variable transaction volumes
Telr's tiered pricing model allows businesses to start with fixed monthly fees and scale to commission-based pricing as transaction volume grows. The Entry Level plan is ideal for businesses with low transaction volumes.
5. Stripe Commission Rates
Stripe offers a global payment platform with straightforward pricing for UAE businesses.
- Transaction Commission: 2.9% + AED 1.00 per successful transaction
- International Transactions: Additional 1% fee
- Monthly Fee: No monthly fee
- Setup Fee: No setup fee
- Chargeback Fee: AED 50 per chargeback
- Best For: Tech-savvy businesses, startups, international businesses, subscription-based services
Stripe's transparent, no-monthly-fee model appeals to businesses seeking simplicity. The platform offers extensive API integration capabilities and supports over 135 currencies, making it ideal for international businesses operating in the UAE.
6. Other UAE Payment Gateways
Additional payment gateway providers in the UAE include:
- 2Checkout (Verifone): 3.5% + AED 1.28 (2SELL), 4.5% + AED 1.84 (2SUBSCRIBE), 6% + AED 2.2 (2MONETIZE)
- CCAvenue: Approximately 2.5% per transaction (varies by volume)
- Paymennt: 2.6-2.9% + AED 1 per transaction (varies by plan)
- Mamo Pay: Custom rates based on business requirements
Compare All Payment Gateway Commissions Automatically
ReconcileOS tracks commissions across all UAE payment gateways, providing unified reporting and cost comparison. Identify the most cost-effective gateway for your business.
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| Payment Gateway | Commission Rate | Monthly Fee | Setup Fee | Processing Fee | Best For |
|---|---|---|---|---|---|
| Network International | 1.5-3.5% | AED 500-2,000 | AED 1,000-5,000 | AED 0.50-1.50 | High-volume merchants |
| Magnati | 1.8-3.8% | AED 600-2,500 | AED 1,500-6,000 | AED 0.75-1.75 | FAB bank customers |
| PayTabs | 2.85% + AED 1 | USD 50/month | AED 500-3,000 | AED 1.00 | E-commerce businesses |
| Telr | 2.49-2.69% + AED 0.50-1.00 | AED 99-349 | AED 1,000-4,000 | AED 0.50-1.00 | Growing businesses |
| Stripe | 2.9% + AED 1 | No monthly fee | No setup fee | AED 1.00 | Tech startups |
| 2Checkout | 3.5-6% + AED 1.28-2.20 | Varies | Varies | AED 1.28-2.20 | Digital products |
Factors Affecting Payment Gateways Commission Rates in UAE
Multiple factors influence payment gateways commission rate 2025 UAE, making it essential for businesses to understand these variables when selecting and negotiating with payment gateway providers.
1. Transaction Volume
Transaction volume is the primary factor affecting commission rates. Payment gateways offer tiered pricing based on monthly transaction volume:
- Low Volume (0-1,000 transactions/month): Standard rates (2.5-4.0%)
- Medium Volume (1,000-10,000 transactions/month): Negotiated rates (2.0-3.0%)
- High Volume (10,000+ transactions/month): Discounted rates (1.5-2.5%)
- Enterprise Volume (50,000+ transactions/month): Custom rates (1.5-2.0%)
Businesses processing 10,000+ transactions monthly typically qualify for rate reductions of 0.3-0.5% compared to standard pricing.
2. Business Type and Industry
Payment gateways categorize businesses by risk level, which directly impacts commission rates:
- Low-Risk Industries: Retail, restaurants, services (1.5-2.5%)
- Medium-Risk Industries: E-commerce, subscription services (2.0-3.5%)
- High-Risk Industries: Travel, adult content, gambling (3.0-6.0%)
High-risk businesses face higher commission rates due to increased chargeback risk and regulatory requirements.
3. Payment Method
The payment method significantly affects commission rates:
- Card-Present (CP) Transactions: Lower rates (1.5-2.5%) due to reduced fraud risk
- Card-Not-Present (CNP) Transactions: Higher rates (2.0-4.0%) due to increased fraud risk
- Digital Wallets: Variable rates (1.5-3.0%) depending on provider
- Bank Transfers: Lower rates (0.5-1.5%) but limited availability
4. Card Type
Different card types incur varying commission rates:
- Debit Cards: Lower rates (1.5-2.0%)
- Standard Credit Cards: Standard rates (2.0-3.5%)
- Premium/Rewards Cards: Higher rates (3.0-4.5%) due to higher interchange fees
- Corporate Cards: Variable rates (2.5-4.0%)
- International Cards: Additional 0.5-1.0% fee for cross-border processing
5. Geographic Location
Transaction origin and destination affect commission rates:
- UAE Domestic Transactions: Standard rates apply
- GCC Regional Transactions: Slight premium (0.2-0.5%)
- International Transactions: Additional fees (0.5-1.5%) for currency conversion and cross-border processing
6. Contract Terms and Commitment
Long-term contracts and volume commitments can secure better rates:
- Monthly Contracts: Standard rates
- Annual Contracts: 0.1-0.2% discount
- Multi-Year Contracts (2-3 years): 0.2-0.3% discount
- Volume Commitments: Additional 0.1-0.2% discount for guaranteed minimums
How to Negotiate Better Payment Gateway Commission Rates
UAE businesses can negotiate improved commission rates by following strategic approaches:
1. Demonstrate High Transaction Volume
Provide historical transaction data showing consistent volume growth. Businesses processing 5,000+ transactions monthly typically qualify for rate reductions of 0.3-0.5%. Present 6-12 months of transaction history to demonstrate volume stability and growth potential.
2. Showcase Low Chargeback Rates
Maintain chargeback rates below 1% to demonstrate low risk. Low-risk businesses can negotiate rates 0.2-0.4% lower than standard pricing. Provide chargeback history and fraud prevention measures to support your case.
3. Commit to Long-Term Contracts
Multi-year agreements (2-3 years) often qualify for 0.2-0.3% rate reductions in exchange for commitment. Longer contracts provide payment gateways with revenue predictability, enabling them to offer better rates.
4. Bundle Additional Services
Using payment gateways for multiple services (gateway, acquiring, fraud prevention, analytics) can result in 0.1-0.2% discounts on transaction fees. Bundled services increase customer lifetime value for providers.
5. Compare Multiple Providers
Obtain quotes from multiple payment gateways and use competitive offers to negotiate better rates. Payment gateways are more likely to match or beat competitor pricing to win your business.
6. Highlight Business Growth Potential
Demonstrate future growth plans and expansion strategies. Payment gateways value businesses with strong growth potential and may offer better rates to secure long-term relationships.
How ReconcileOS Solves Payment Gateway Commission Tracking
ReconcileOS provides automated payment gateway commission reconciliation that addresses common challenges businesses face when managing multiple payment gateways:
1. Multi-Gateway Commission Tracking
ReconcileOS automatically tracks commissions across all UAE payment gateways in a unified platform:
- Real-time commission calculation for Network International, Magnati, PayTabs, Telr, Stripe, and others
- Automatic detection of rate changes or discrepancies across all gateways
- Unified reporting dashboard showing total commission costs by gateway
- Historical commission trend analysis for cost optimization
2. Automated Commission Verification
Never miss a commission error again. ReconcileOS matches payment gateway settlement files to your transactions and flags any mismatches:
- Automated settlement file processing (PDF, Excel, CSV) from all gateways
- Transaction-to-payout matching with 99.9% accuracy
- Instant alerts for commission overcharges or underpayments
- Detailed discrepancy reports for dispute resolution
3. Commission Cost Optimization
Gain complete visibility into payment gateway commission costs and identify optimization opportunities:
- Daily, weekly, and monthly commission reports by gateway
- Commission rate comparison across providers
- Profit margin analysis by transaction type and gateway
- Cost optimization recommendations based on transaction patterns
- FTA-compliant commission documentation for VAT reporting
Track All Payment Gateway Commissions Automatically
Stop losing money to commission errors. ReconcileOS ensures 100% accuracy in payment gateway commission tracking and reconciliation across all UAE providers.
Get Free DemoPayment Gateway Commission Rate Solutions Comparison
| Feature | ReconcileOS | Manual Tracking | Generic Accounting Software |
|---|---|---|---|
| Multi-Gateway Support | ✅ All UAE gateways | ❌ Manual entry per gateway | ⚠️ Limited integration |
| Automated Commission Calculation | ✅ Real-time, transaction-level | ❌ Manual spreadsheet entry | ⚠️ Requires manual configuration |
| Settlement Reconciliation | ✅ Automated file processing | ❌ Manual matching required | ⚠️ Limited gateway integration |
| Discrepancy Detection | ✅ Instant alerts for errors | ❌ Must be spotted manually | ⚠️ Basic variance reporting |
| Commission Analytics | ✅ Trend analysis & insights | ❌ Limited to basic calculations | ⚠️ Generic financial reports |
| Cost Comparison | ✅ Side-by-side gateway comparison | ❌ Manual calculations required | ⚠️ Not gateway-specific |
Top Benefits of Automated Payment Gateway Commission Tracking
- Prevent Revenue Loss: Identify and recover commission overcharges immediately, potentially saving thousands of dirhams monthly across multiple payment gateways
- Accurate Financial Planning: Understand true commission costs for better pricing and profit margin decisions across all payment channels
- Time Savings: Reduce commission reconciliation time from hours to minutes, freeing staff for revenue-generating activities
- Multi-Gateway Optimization: Compare commission costs across providers to identify the most cost-effective gateway for different transaction types
- Audit Compliance: Maintain complete commission documentation for FTA audits and financial reviews
- Negotiation Power: Use accurate commission data to negotiate better rates with payment gateways based on volume and performance
- Real-Time Visibility: Monitor commission costs in real-time across all payment gateways from a single dashboard
Payment Gateway Commission Rate Trends for 2025
Several trends are shaping payment gateways commission rate 2025 UAE:
1. Volume-Based Pricing
Payment gateways are increasingly offering tiered pricing based on transaction volume, with businesses processing 10,000+ transactions monthly receiving 0.3-0.5% rate reductions. This trend benefits high-volume merchants while maintaining profitability for providers.
2. Industry-Specific Rates
Specialized commission structures for high-risk industries (travel, hospitality, digital goods) and low-risk sectors (retail, services) are becoming more common. Payment gateways are refining risk assessment models to offer more competitive rates to low-risk businesses.
3. Technology Integration Discounts
Businesses using payment gateways' advanced features (fraud prevention, analytics, multi-currency, subscription management) may receive 0.1-0.2% commission discounts. This encourages adoption of value-added services.
4. Long-Term Contract Incentives
Multi-year agreements (2-3 years) are offering 0.2-0.3% rate reductions in exchange for commitment and volume guarantees. Payment gateways value predictable revenue streams and reward long-term partnerships.
5. Transparent Pricing Models
Payment gateways are moving toward transparent, no-hidden-fee pricing models to compete with providers like Stripe. This trend benefits businesses seeking clarity in cost structures.
6. Regional Competition
Increased competition among UAE payment gateways is driving rate optimization. Businesses can leverage competitive offers to negotiate better rates, particularly for high-volume accounts.
Frequently Asked Questions
Q: What is the average payment gateway commission rate in UAE for 2025?
A: The average payment gateways commission rate 2025 UAE ranges from 2.5% to 3.0% per transaction, with additional fixed fees (AED 0.50-2.20 per transaction) and monthly fees (AED 99-2,500). Rates vary significantly based on transaction volume, business type, payment method, and card type. High-volume merchants (10,000+ transactions monthly) typically pay 1.5-2.5%, while small businesses may pay 2.5-4.0%.
Q: Which payment gateway offers the lowest commission rates in UAE?
A: For high-volume merchants, Network International typically offers the lowest rates (1.5-2.0%) for businesses processing 10,000+ transactions monthly. Stripe offers competitive rates (2.9% + AED 1) with no monthly fees, making it attractive for startups and small businesses. Telr's Entry Level plan (AED 349/month, no commission) is best for businesses with low transaction volumes. The best option depends on your transaction volume, business type, and specific requirements.
Q: Can I negotiate lower payment gateway commission rates in UAE?
A: Yes, UAE businesses can negotiate better commission rates by demonstrating high transaction volume (5,000+ monthly), maintaining low chargeback rates (<1%), committing to long-term contracts (2-3 years), and bundling additional services. High-volume merchants typically qualify for rate reductions of 0.3-0.5%, while low-risk businesses can negotiate 0.2-0.4% lower rates. Use ReconcileOS to track your commission costs and provide data-driven evidence during negotiations.
Q: What additional fees should I consider beyond commission rates?
A: Beyond commission rates, payment gateways charge: monthly gateway fees (AED 99-2,500), setup fees (AED 500-6,000 one-time), processing fees per transaction (AED 0.50-2.20), chargeback fees (AED 50-175), refund fees (AED 10-25), currency conversion fees (1-2% for international transactions), PCI compliance fees (AED 200-500 monthly), and statement fees (AED 50-100 monthly). ReconcileOS automatically breaks down all fee components for complete transparency and cost analysis.
Q: How do I track and verify payment gateway commission charges?
A: Use automated reconciliation software like ReconcileOS to track and verify payment gateway commission charges. The platform automatically processes settlement files from all UAE payment gateways, calculates expected commissions based on your agreed rates, and flags any discrepancies or overcharges. Manual verification requires cross-referencing settlement files with transaction data, which is time-consuming and error-prone. Automated tracking ensures 100% accuracy and instant discrepancy detection.
Q: Should I use multiple payment gateways to optimize commission costs?
A: Using multiple payment gateways can optimize commission costs by routing different transaction types to the most cost-effective provider. For example, use Network International for high-volume card-present transactions (1.5-2.0%), Stripe for international transactions, and Telr for low-volume periods. However, managing multiple gateways requires sophisticated reconciliation tools like ReconcileOS to track commissions, compare costs, and ensure accurate financial reporting across all providers.
Q: How do payment gateway commission rates affect my business profitability?
A: Payment gateway commission rates directly impact profit margins. A 2.5% commission on a AED 1,000 transaction means you pay AED 25 in fees, reducing your margin. For businesses processing AED 100,000 monthly, a 0.5% rate reduction saves AED 500 monthly (AED 6,000 annually). Understanding your exact commission costs helps with pricing strategy, cost management, and profit optimization. ReconcileOS provides commission analytics to help you understand the true impact on profitability and identify opportunities to improve margins.
Q: Are payment gateway commission rates different for international transactions?
A: Yes, payment gateways typically charge additional fees (0.5-1.5%) for international card transactions due to cross-border processing costs and currency conversion. International transactions may also incur currency conversion fees (1-2%) and have different settlement timelines. Stripe charges an additional 1% for international transactions. ReconcileOS tracks international transaction fees separately to help you understand the true cost of accepting international payments and optimize your payment gateway strategy.
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Get Started FreeRelated topics: Network International Commission Rate 2025, Payment Reconciliation UAE Complete Guide, Restaurant Payment Automation UAE, Talabat Commission Rate
About the Author: This comprehensive guide to payment gateways commission rate 2025 UAE is based on market research, customer interviews, and insights from ReconcileOS implementations across the Emirates. For more on payment gateway reconciliation, see our Payment Reconciliation UAE guide or the Network International Commission Rate 2025 overview.
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