If you are running an e-commerce business in Saudi Arabia, your choice of payment gateway is one of the biggest factors affecting your profit margins. Because the Saudi Central Bank (SAMA) oversees the financial ecosystem, fees are structured specifically to favor the national payment scheme, mada, while maintaining standard international rates for credit cards.
Here is a breakdown of how these fees work, what they cost you, and when the money actually hits your bank account.
1. The Fee Structure: mada vs. Credit Cards
In the Saudi market, you aren't charged a flat rate for every transaction. Instead, the cost depends on the "card brand" the customer uses. The formula is typically: (Percentage of Sale) + (Fixed Fee per Transaction).
mada (The National Debit Card)
mada is the most common payment method in the Kingdom. Since it is a local network, it is the most cost-effective for merchants.
Transaction Fee: Usually ranges from 1.0% to 1.75%.
Fixed Fee: Typically SAR 1.00 per transaction.
The Benefit: mada transactions generally have higher conversion rates in Saudi Arabia and lower dispute (chargeback) risks.
Visa & Mastercard (Credit Cards)
When customers use credit cards, the fees jump because international banks and clearinghouses are involved.
Transaction Fee: Usually between 2.2% and 2.9%.
Fixed Fee: Typically SAR 1.00 per transaction.
Foreign Card Surcharge: If a tourist or a customer with a non-Saudi bank account buys from you, gateways often add an extra 1% to 1.5% for cross-border processing.
2. Settlement Timelines: When do you get paid?
Even though the customer's money is deducted instantly, it takes time to reach your business bank account. This is known as the "settlement period."
mada Transactions: These are processed locally and are fast. You can expect the funds in 2 to 3 business days (T+2 or T+3).
Credit Card Transactions: Because Visa and Mastercard require international clearing, these take longer, usually 3 to 5 business days.
Digital Wallets (STC Pay / UrPay): Some gateways offer faster settlements for these wallets, sometimes within 24 hours.
3. Real-World Examples
To see how these fees impact your bottom line, let’s look at two different sales scenarios:
Scenario A: A SAR 200 purchase using mada
Percentage Fee (1.0%): SAR 2.00
Fixed Fee: SAR 1.00
Total Fee: SAR 3.00
You receive: SAR 197.00
Scenario B: A SAR 200 purchase using Visa
Percentage Fee (2.5%): SAR 5.00
Fixed Fee: SAR 1.00
Total Fee: SAR 6.00
You receive: SAR 194.00
4. Extra Costs to Watch Out For
Beyond the per-transaction fee, keep an eye on these potential charges:
Setup Fees: While many gateways (like Moyasar or PayTabs) often offer "SAR 0" setup during promotions, some still charge an initial integration fee of SAR 1,000 to SAR 2,000.
Monthly Subscription: Some providers charge a "maintenance fee" (e.g., SAR 100/month) if your transaction volume is low.
Refund Fees: If you refund a customer, the gateway usually keeps the fixed SAR 1.00 fee as a processing cost, even if they return the percentage fee.
