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Part of the guideHow to get paid in Nigeria: transfers, checkout and invoices
The short answer
As of October 2026, large Nigerian gateways publish local fees of about 1.5% per transaction, capped at ₦2,000, with international cards at roughly 3.9% to 4% and dedicated virtual accounts from 1% capped at ₦300. What you actually pay depends on your average order size, the mix of cards and transfers, VAT on fees, payout charges and how long settlement takes. Run your own sales through each price list before choosing.
Gateway fees look similar on the pricing page and very different on the monthly statement. Caps, flat add-ons, waivers and VAT all change the real rate, and the right gateway for a ₦3,000 snack order is not the right one for a ₦300,000 laptop. This article compares published prices and shows how to work out your own cost. For how gateways fit alongside transfers, invoices and POS, see our guide to getting paid in Nigeria.
Published prices as of October 2026
The table uses each provider's own pricing page. Prices change and are often negotiable at volume, so treat this as a starting point and check the live page before you sign.
| Item | Paystack (published) | Monnify (published) |
|---|---|---|
| Local cards | 1.5% + ₦100, capped at ₦2,000; ₦100 waived under ₦2,500 | 1.5%, capped at ₦2,000 |
| Bank transfer | 1.5% + ₦100, capped at ₦2,000 (all local channels) | 1.5%, capped at ₦2,000 |
| USSD | Included in local channels pricing | 1.5%, capped at ₦2,000 |
| Dedicated virtual accounts | 1%, capped at ₦300 | Not priced separately on the page |
| International cards | 3.9% + ₦100 (American Express 4.5%) | 4%, no cap shown |
| Payouts to bank accounts | Priced separately | ₦10 under ₦10,000; ₦20 from ₦10,000; ₦40 from ₦50,000 |
| VAT on fees | Check terms | Rates shown exclusive of VAT |
| Setup or monthly fee | None stated on pricing page | None |
Other gateways and banks publish or negotiate their own rates. Some also offer special pricing to particular sectors: Paystack, for example, lists 0.7% capped at ₦1,500 for local card payments to Nigeria-based educational institutions.
What the headline rate hides
The cap
A 1.5% fee capped at ₦2,000 stops growing at about ₦133,000. Above that, every payment costs the same ₦2,000, so the effective rate on a ₦500,000 payment is 0.4%. If your orders are large, the cap matters more than the percentage.
The flat add-on and its waiver
A ₦100 flat fee is a large share of a small order. On a ₦3,000 payment it adds 3.3 percentage points. The waiver below ₦2,500 helps very small baskets, but orders just above the line pay the full amount.
VAT on fees
Nigeria's VAT rate remains 7.5% as of 2026. Where a provider's rates are quoted before VAT, add it. A ₦2,000 capped fee becomes ₦2,150.
Settlement time
Card money usually reaches your bank on the next business day. Over a weekend, Friday's sales may not arrive until Monday or Tuesday. That is working capital you cannot use for stock, payroll or suppliers, and for a business borrowing to bridge the gap it has a real cost.
Payout charges
If you use the gateway's balance to pay suppliers, refunds or staff, those transfers out carry their own fees. Monnify, for instance, lists ₦10 for payouts under ₦10,000, ₦20 from ₦10,000 and ₦40 from ₦50,000. A business making 2,000 supplier and rider payouts a month at an average of ₦25,000 would pay ₦40,000 in payout fees alone. Small per-transfer amounts add up when they run every day, so include them in any comparison rather than looking only at collection prices.
Chargebacks and refunds
Card payments can be disputed, and the money is taken from your payouts while the dispute runs. Check whether fees are returned on refunds; with many providers they are not. Our article on chargebacks in Nigeria explains the process.
Worked example: three businesses, one price list
Take a local rate of 1.5% + ₦100 capped at ₦2,000 (₦100 waived under ₦2,500), plus 7.5% VAT on the fee.
| Business | Order value | Fee before VAT | Fee with VAT | Effective rate |
|---|---|---|---|---|
| Food delivery | ₦2,000 | ₦30 | ₦32.25 | 1.6% |
| Pharmacy | ₦8,000 | ₦220 | ₦236.50 | 3.0% |
| Electronics store | ₦450,000 | ₦2,000 | ₦2,150 | 0.5% |
The pharmacy pays the highest effective rate, because its order size sits where the flat ₦100 bites hardest. If it moved half of its 3,000 monthly orders to a dedicated virtual account at 1% capped at ₦300, those 1,500 payments would cost ₦80 each before VAT instead of ₦220. That saves ₦210,000 a month before VAT. The electronics store, by contrast, is almost indifferent between channels because it hits the cap either way; its bigger concern is chargebacks on high-value items.
How to compare gateways for your own business
- Export three months of sales and group them by payment method and order size.
- Apply each gateway's published price, including caps, flat fees, waivers and VAT, to every transaction.
- Add payout charges if you move money out through the gateway.
- Estimate the cost of settlement delay: average daily card sales multiplied by days waiting, times your cost of borrowing.
- Add the chargebacks you lost last year, plus the staff time spent disputing them.
- Ask each provider for a volume quote in writing. Rates are often lower than the public page once you pass a few million naira a month.
- Check what happens to fees on refunds and whether you may pass fees to customers. Some gateways let you add fees at checkout; consumer rules still apply.
Most businesses end up with more than one channel: a bank transfer checkout for local customers, a card gateway for subscriptions and foreign buyers, and virtual accounts for repeat payers. The cheapest single gateway is less important than the cheapest mix.
Fees the sender pays, not you
Two charges sit with your customer, not with you. Since 1 January 2026, a ₦50 stamp duty applies to electronic transfers of ₦10,000 or more, paid by the sender. Banks also charge their own customers for outgoing transfers. A CBN draft guide to charges published in April 2026 proposed no fee for transfers up to ₦5,000, ₦10 between ₦5,000 and ₦50,000, and ₦50 above that. Neither appears on your gateway invoice, but both shape how customers feel about paying by transfer.
Where Pryme fits
Pryme Checkout (Nigeria only) is a bank-transfer checkout, free of charge. Because it takes transfers rather than cards, card chargebacks do not arise; businesses that need card acceptance will use a card gateway alongside it. In Nigeria, Naira deposits are held by Solid Allianze Microfinance Bank, licensed by the CBN and insured by the NDIC up to the applicable limit. For how to combine channels, return to the payments guide.
Questions people ask
Which payment gateway is cheapest in Nigeria?
It depends on your order size and payment mix. Published local rates cluster around 1.5% with a ₦2,000 cap, but flat add-ons, waivers, VAT and payout fees change the result. Model your own last three months of sales against each price list.
How much does Paystack charge per transaction in Nigeria?
As of October 2026, Paystack lists 1.5% plus ₦100 for local payments, capped at ₦2,000, with the ₦100 waived under ₦2,500. International cards are 3.9% plus ₦100, and dedicated virtual accounts are 1% capped at ₦300.
Do payment gateways charge VAT on fees in Nigeria?
Fees are a taxable service, and some providers quote rates exclusive of VAT, which is 7.5%. Check your provider's terms and add VAT when comparing.
Can I pass payment gateway fees to my customers?
Some gateways let Nigerian businesses add the fee at checkout through a dashboard setting. Make the charge clear before payment and check consumer protection rules for your sector.
Why is my effective gateway rate higher than 1.5%?
Usually because of a flat per-transaction fee on small orders, VAT on the fee, or both. On an ₦8,000 order, 1.5% plus ₦100 is 2.75% before VAT.
Sources
- Paystack: Transactions pricing (Nigeria) · accessed Oct 2026
- Monnify: Pricing · accessed Oct 2026
- Techpoint Africa: Guide to the Nigerian tax reform Acts · accessed Oct 2026
- Techeconomy: Stamp duty replaces EMTL, sender to bear N50 charge on bank transfers · accessed Oct 2026
- TechCabal: Why transfers above N10,000 will cost N60 under CBN's new guide · accessed Oct 2026
- Paystack: How to resolve chargebacks · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.