Paystack Fees Explained (2026)
Paystack charges a percentage of every transaction plus a flat naira fee. The exact amount depends on whether the card is local (Nigerian) or international.
| Card Type | Rate | Flat Fee | Cap | Free Threshold |
|---|
| Local (NGN) | 1.5% | ₦100 | ₦2,000 total | ≤ ₦2,500 (fee waived) |
| International | 3.9% | ₦100 | No cap | None |
Practical Examples
- ₦10,000 local payment: Fee = 1.5% × ₦10,000 + ₦100 = ₦150 + ₦100 = ₦250. You receive ₦9,750.
- ₦2,000 local payment: Below ₦2,500 threshold — fee is waived. You receive the full ₦2,000.
- ₦200,000 local payment: Fee would be ₦3,100, but capped at ₦2,000. You receive ₦198,000.
- ₦50,000 international: Fee = 3.9% × ₦50,000 + ₦100 = ₦1,950 + ₦100 = ₦2,050. You receive ₦47,950.
Should You Charge Customers the Fee?
Many Nigerian businesses pass the Paystack fee to customers by adding it on top of the product price. This is allowed by Paystack's terms. The formula to gross up a price so you receive exactly your target amount is: Charge = (Target Amount + ₦100) / (1 – 0.015) for local cards.
However, surprise fees annoy customers. A cleaner approach is to build the fee into your pricing upfront, or offer a slight discount for bank transfers (which are fee-free).
Frequently Asked Questions
Does Paystack charge VAT on fees?
Yes, Paystack charges 7.5% VAT on their processing fees as required by Nigerian tax law. This is in addition to the processing fee. The calculator above shows the gross fee including VAT. Check your Paystack dashboard for the precise VAT breakdown on each transaction.
What is the ₦2,500 free threshold?
For local (NGN) card transactions of ₦2,500 or less, Paystack waives the processing fee entirely. This is useful for micro-transactions, ticket sales, and low-value digital products. Note: this applies only to local cards, not international cards.
How does Paystack compare to Flutterwave?
Flutterwave's local card rate is 1.4% (vs Paystack's 1.5%), with the same ₦100 flat fee and a ₦2,000 cap. For international cards, Flutterwave charges 3.8% vs Paystack's 3.9%. The difference per transaction is small — for a ₦50,000 local payment, Paystack charges ₦850 vs Flutterwave's ₦800. Settlement speed, reliability, and developer experience matter more than this small fee difference.
Are there monthly fees or setup costs?
Paystack has no monthly fees or setup costs for standard Nigerian businesses. You only pay per successful transaction. There is a one-time KYC (Know Your Customer) verification process but no ongoing subscription. Enterprise plans may have custom pricing for very high volumes.
What payment methods does Paystack support?
Paystack supports Nigerian debit/credit cards (Visa, Mastercard, Verve), bank transfers (USSD), mobile money, QR codes, and Payment Links. Bank transfer fees are typically lower or zero — check your current Paystack dashboard for bank transfer rates as these change frequently.