Calculate monthly POS card machine fees for your retail business. Compare MDR rates across banks and providers in Nigeria, Kenya, South Africa, and across Africa.
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POS Transaction Fee Calculator
Monthly POS Fees
Daily Card Volume
Monthly Card Volume
Monthly Transaction Fees
Monthly Terminal Fee
Effective Rate on Volume
Annual POS Cost
MDR varies by card type: local debit cards typically attract lower rates (0.8-1.5%) vs international credit cards (2.5-3.5%). Negotiate with your bank at volumes above 1M per month. Some providers offer flat monthly fees instead of per-transaction MDR for high-volume merchants.
Frequently Asked Questions
What is MDR (Merchant Discount Rate)?
MDR is the fee charged to merchants for accepting card payments. It covers: interchange fee (paid to card-issuing bank, typically 0.5-1%), scheme fee (paid to Visa/Mastercard, typically 0.1-0.3%), and acquirer margin (bank/processor profit). In Nigeria, the CBN caps MDR at 0.5% for debit cards but overall POS fees average 1.5%+. In Kenya, local Visa debit is around 0.5-1%, credit cards 2-3%.
How do I get lower POS rates?
Negotiate with your bank at higher volumes (monthly card volume > 500K). Ask for tiered pricing where rate drops as volume grows. Consider aggregator models (Paystack Terminal, Flutterwave POS, OPay, Moniepoint in Nigeria) which often have simpler flat-rate pricing. In South Africa, compare Yoco, iKhokha, and Peach Payments which offer competitive rates for SMEs.
Is mobile money cheaper than POS?
For small transactions, mobile money (M-Pesa, MTN MoMo) merchant payments are often cheaper for merchants — 0-1% vs POS MDR of 1.5-2.5%. However, most mobile money merchant fees are borne by the customer (withdrawal fees). For business-to-business payments and large transactions, bank transfers may be the most cost-effective. Always compare total cost including settlement speed.