# Payment Gateway Fees in the UAE, Explained Source: https://tijaratech.ae/payment-gateway-fees-uae/ Last updated: 16 October 2026 "Which is the cheapest payment gateway in the UAE?" is one of the questions we are asked most, and the honest answer is that the headline rate rarely tells you. Two gateways quoting the same percentage can cost you very different amounts over a year, because the percentage is only one line of the bill. We do not set any provider's fees and we do not earn a commission on the one you choose. This guide is about how to read a fee schedule so that you can compare quotes properly. ## The parts of a payment gateway bill ### The percentage Usually called the merchant discount rate. A percentage of every successful transaction. It often differs by card type: local debit, local credit, international cards and premium cards can each carry a different rate. Ask for the rate on each, not a single blended number, and estimate your own mix. ### The fixed fee per transaction A flat amount on every payment, on top of the percentage. On a large invoice it barely registers. On a small basket it can be most of the cost. A business taking many small payments should look at this line before any other. A simple illustration, with invented rates: a fee of 2.5 percent plus AED 1 costs AED 2.25 on a AED 50 sale, which is 4.5 percent of the sale. On a AED 5,000 invoice the same fee costs AED 126, which is about 2.5 percent. The same tariff is cheap for one business and expensive for another. ### Setup and monthly fees Some providers charge to open the account, some charge a monthly platform fee, and some charge neither. These matter most in the first year and for low volume merchants. ### Refunds Ask whether a refund is free, carries a fee, or keeps the original transaction fee rather than returning it. A business with a high return rate, such as fashion e-commerce, can lose a meaningful amount here. ### Chargebacks When a customer disputes a payment with their bank, the provider usually charges a fee to handle it, whether or not you win. Ask the amount and what evidence the provider needs from you to contest one. ### Cross-border and currency Payments from cards issued outside the UAE often carry an extra percentage. If you price in another currency, there is usually a conversion margin as well. A business selling mainly to overseas customers should model this line carefully, because it can exceed the headline rate. ### Settlement time Not a fee, but a cost. If your money takes several days to arrive, that is working capital you do not have. For a business with thin cash flow, a provider that settles faster at a slightly higher rate can be the cheaper choice in practice. ### Reserves Some providers hold back a percentage of your settlements for a period as a safeguard against chargebacks, particularly for new merchants or higher risk categories. Ask whether a reserve applies to you and for how long. ### VAT on the fees Check whether quoted fees are before or after VAT, and make sure the provider issues a proper tax invoice for its charges, because you will want to recover the input VAT. ## How to compare two quotes properly Take last month's real transactions. Count how many there were, what they totalled, how many were refunded, how many came from overseas cards, and how many were disputed. Then apply each provider's full schedule to those numbers. It takes an hour in a spreadsheet and it is the only comparison that means anything. A quote compared on its headline rate is a guess. Then add the cost nobody quotes: the time your team spends reconciling settlements against invoices. A provider whose settlement reports match cleanly to your system can save more in staff hours than a lower rate saves in fees. We explain why in [payment reconciliation in the UAE](https://tijaratech.ae/payment-reconciliation-uae/). ## Where businesses overpay without noticing **Choosing on rate, then discovering the fixed fee.** Common for cafes, delivery businesses and anyone with small baskets. **Paying cross-border rates on local customers.** This can happen when a business uses an international gateway for mainly domestic sales. A local acquirer may be cheaper for that mix. **Refunds that cost twice.** Paying the original fee, not getting it back, and paying a refund fee as well. **Reconciling by hand.** Not on the fee schedule at all, and frequently the largest cost. ## Negotiating Fees are often negotiable once you have volume, a clean history and a clear picture of your transaction mix. Bring the real numbers from your own transactions to the conversation. A provider can price you much more confidently when it can see what your business actually looks like rather than a guess. If you are still deciding which providers to approach, our [list of payment gateways in the UAE](https://tijaratech.ae/payment-gateways-uae-compared/) sets out the main options, and [how to choose a payment gateway](https://tijaratech.ae/how-to-choose-a-payment-gateway-uae/) covers the questions beyond price. ## Common questions ### So which is the cheapest payment gateway in the UAE? There is no single answer, because it depends on your basket size, your card mix, where your customers are and how often you refund. The cheapest provider for a cafe is rarely the cheapest for a B2B supplier issuing large invoices. Apply each schedule to your own last month and the answer usually becomes obvious. ### Why do you not publish rates? Because we do not set them, they change, and they are often negotiated per merchant. A rate we published would be out of date or wrong for your business. The method above stays correct. ### Is a lower rate worth switching for? Sometimes. Count the cost of switching too: a new integration, new testing, new settlement formats and the risk of disruption. Switching for a small rate difference rarely pays. Switching because your current provider settles slowly or reconciles badly often does. ### Can you help us compare quotes? Yes. Because we have no commission from any provider, we can apply each schedule to your real transactions and tell you which works out cheaper, and which will be easier to reconcile. Our [payment integration](https://tijaratech.ae/payment-integration/) page explains how we work.