This payment fees calculator shows what mada, the national payment network in Saudi Arabia, and online payment gateways take from each transaction before the money reaches your account. Enter the transaction amount and the fees in your provider contract: the percentage per transaction, any fixed fee, and whether VAT is added to the fees. You get the fees itemised, the net deposited, the effective cost as a share of the amount, and the monthly and yearly cost at your volume. The second tab works backwards from the net you want to the amount to charge.
How to calculate mada fees and the net amount
Every card payment has a slice taken off before the rest is deposited in your account. The deduction is a percentage of the amount, sometimes plus a fixed fee in riyals per transaction, then VAT on the total fees if the provider charges it. The calculator works out each part in halalas and then adds them up.
Fee = Amount × Rate + Fixed · VAT = Fee × 15% · Net = Amount − Fee − VAT
Payment gateway fees for online stores
A payment gateway takes payments on your website, while a point of sale terminal takes them in the shop. A gateway contract can differ from a terminal contract in its rate and in whether there is a fixed fee per transaction, and one contract can charge different rates for mada cards, credit cards and digital wallets. That is what the "Payment method mix" switch in advanced mode is for: enter each method's share and fees, and the calculator works out the monthly cost of each and highlights the most expensive.
A fixed fee weighs heavily on small transactions. A SAR 1.00 fixed fee on a SAR 20.00 sale is 5% of it on its own, and on a SAR 500.00 sale it is 0.2%. Use your real average transaction, not a round number.
POS and mada fees: what to compare between offers
The fees a merchant pays for card payments do not stop at the rate, so when two providers send you offers, compare the effective cost rather than the headline percentage. Enter the first offer with your average transaction and monthly count, note the monthly cost, then do the same for the second. Outside the calculator, ask about the monthly terminal rental, set-up fees, how quickly funds are deposited, and any minimum monthly volume. The calculator covers transaction fees only, so add fixed monthly charges to the monthly cost yourself.
VAT on payment processing fees
A provider's fees are a service, so a VAT-registered provider adds VAT at the rate in force in the Kingdom (15%), and it shows on their invoice or settlement statement. If your business is VAT-registered, this VAT is generally input tax you can recover under the usual conditions; check the current ZATCA guidance. Untick "VAT is added to the fees" if your statement does not show it.
Common mistakes with payment fees
- Comparing rates and ignoring the fixed fee per transaction.
- Forgetting VAT on the fees, so the net looks higher than the actual deposit.
- Raising prices by the same percentage to cover fees, which falls short when there is a fixed fee.
- Costing fees on an estimated average transaction far from the one on your statement.
- Booking sales at the net amount instead of the gross, so the fees vanish as an expense.
What to do with the result
Match the net against the actual deposits in your bank statement for one week; if they differ, ask the provider for an itemised fee statement. Book sales at the gross amount, the fees as a separate expense, and their VAT in its own account. Before you renew the contract, download the Excel file: the fee cells are separate, so you can change the rate or the fixed fee and see the yearly cost straight away. To price your menu on delivery apps, use the delivery app commission calculator. To reconcile card sales with the cash drawer at the end of a shift, use the cash drawer reconciliation calculator.
When reconciling card sales becomes a daily job
One transaction takes seconds to work out. A shop taking hundreds of payments a day by several methods needs to know every evening what was paid by card, what deposit to expect and how much was deducted from it. At Microtec we offer shops in Saudi Arabia O-Green, a cashier and point of sale system for retail. Run it on a week of sales and compare what the terminal recorded with what the provider deposited.