How Much Does Paystack Charge Per Transaction in Nigeria? (2026 Complete Guide)

If you’re running an online business in Nigeria, understanding payment gateway fees is crucial to protecting your profit margins. Paystack is one of the most popular payment solutions in the country, but exactly how much does it cost per transaction? Let’s break down everything you need to know about Paystack’s pricing structure in Nigeria.

Paystack’s Standard Transaction Fees in Nigeria

For businesses operating in Nigeria, Paystack’s standard pricing structure is straightforward:

1.5% + ₦100 per transaction

This is the standard fee for local transactions in Nigeria. Here’s what it means:

• 1.5% percentage fee – calculated on the transaction amount
• ₦100 flat fee – added to each transaction

Important Fee Details

Transaction Cap: Paystack has a maximum fee cap of ₦2,000 per transaction. This means no matter how large your transaction is, you’ll never pay more than ₦2,000 in fees for a single local transaction.

Small Transaction Waiver: For transactions under ₦2,500, Paystack waives the ₦100 flat fee. You’ll only pay the 1.5% percentage fee on these smaller amounts.

Real Examples: What You Actually Pay

Let’s look at some practical examples to understand the actual costs:

Example 1: ₦5,000 Transaction

• Transaction amount: ₦5,000
• Percentage fee (1.5%): ₦75
• Flat fee: ₦100
• Total Paystack fee: ₦175
• You receive: ₦4,825

Example 2: ₦50,000 Transaction

• Transaction amount: ₦50,000
• Percentage fee (1.5%): ₦750
• Flat fee: ₦100
• Total Paystack fee: ₦850
• You receive: ₦49,150

Example 3: ₦200,000 Transaction

• Transaction amount: ₦200,000
• Percentage fee (1.5%): ₦3,000
• But capped at: ₦2,000 (maximum fee)
• You receive: ₦198,000

Example 4: ₦2,000 Transaction (Small Transaction)

• Transaction amount: ₦2,000
• Percentage fee (1.5%): ₦30
• Flat fee: ₦0 (waived for transactions under ₦2,500)
• Total Paystack fee: ₦30
• You receive: ₦1,970

Special Pricing for Educational Institutions

If you’re running a school or educational platform in Nigeria, Paystack offers special discounted rates:

Educational Institution Fees:

• Local card payments: 0.7% capped at ₦1,500
• All other payment methods: Flat fee of ₦300

This can result in significant savings for schools processing student fees and other educational payments.

Paystack POS Terminal Charges

If you’re using Paystack’s physical Point of Sale terminals, here’s what you need to know:

Terminal Costs:

• Live Terminal (Outright Purchase): ₦100,000
• Live Terminal (Installment): ₦17,000/month for 6 months
• Test Terminal (for developers): ₦85,000

Transaction Fees:

• 1.5% per successful transaction (no flat fee mentioned for POS transactions)

Settlement Timeline

One important factor to consider beyond just fees is when you actually receive your money:

• Settlement period: T+1 (Next working day)
• Payments received on Monday are settled on Tuesday
• No settlement on weekends and public holidays

Note: Some users have mentioned that same-day payout is not available, which can impact cash flow for certain businesses.

Additional Costs and Considerations

What’s Included (Free):

• ✅ Integration setup – completely free
• ✅ Maintenance – no monthly fees
• ✅ Multiple payment methods (cards, bank transfers, USSD)
• ✅ Fraud protection systems
• ✅ Transaction reporting and analytics
• ✅ Customer support

Potential Additional Costs:

• Chargeback fees – Applied when customers dispute transactions
• Transfer fees – If you use Paystack’s transfer service to send money to customers or vendors
• User verification service – For KYC verification needs

Volume Discounts

Businesses that process large transaction volumes can negotiate discounted rates with Paystack. If you’re doing high volumes, it’s worth reaching out to their sales team to discuss custom pricing.

How Paystack’s Fees Compare

To give you context, here’s how Paystack stacks up against typical payment gateway fees in Nigeria:

The Hidden Cost of Transaction Fees

Let’s put this in perspective with a real business scenario:

Scenario: Online Course Business

• Monthly revenue: ₦1,000,000
• Average transaction: ₦20,000 (50 transactions)
• Monthly Paystack fees: ~₦20,000 – ₦25,000

Over a year, you’re looking at approximately ₦240,000 – ₦300,000 in payment processing fees. For many businesses, especially those with tight margins or just starting out, this can significantly impact profitability.

Strategies to Minimize Paystack Fees

1. Pass Fees to Customers

Paystack allows you to add transaction fees to your product prices. You can contact [email protected] to enable automatic fee passing.

2. Optimize Transaction Sizes

Encourage larger purchases when possible to take advantage of the ₦2,000 fee cap.

3. Negotiate Volume Discounts

If you process significant volumes, reach out to Paystack for custom pricing.

4. Factor Fees into Pricing

Build transaction costs into your product pricing from the start.

Is Paystack Worth the Cost?

Paystack offers solid value for its fees:

Advantages:

• ✅ No setup or maintenance fees
• ✅ Comprehensive fraud protection
• ✅ Multiple payment options
• ✅ Reliable infrastructure
• ✅ Next-day settlements
• ✅ Good customer support
• ✅ Transaction fee cap at ₦2,000

Disadvantages:

• ❌ Fees can add up for high-volume, low-margin businesses
• ❌ No same-day settlements
• ❌ 1.5% + ₦100 can be high for small transactions (though ₦100 is waived under ₦2,500)

Alternative: Bonzai Pro – Lower Fees for Digital Creators

If you’re a content creator, coach, or selling digital products, there’s an alternative worth considering: Bonzai Pro.

Why Bonzai Pro Might Be Better for You:

1. Lower Starting Fees

• Bonzai Pro starts at just 5% per transaction
• No flat fees (unlike Paystack’s ₦100)
• Fees decrease as you earn more – can go as low as 0.7%

2. Free to Start

• Zero setup fees
• Zero monthly maintenance
• Only pay when you make sales

3. Built for Digital Products Perfect for:

• Online courses
• Coaching services
• Paid communities
• Digital downloads
• Memberships and subscriptions
• Paid newsletters

4. All-in-One Platform Unlike Paystack (which is just a payment processor), Bonzai Pro includes:

• Course hosting
• Email marketing
• Community chat
• Content management
• Crypto payment support
• 4x installment payments
• Analytics dashboard

Cost Comparison: Paystack vs. Bonzai Pro

Scenario: Selling a ₦50,000 Online Course

With Paystack:

• Fee: ₦850 per sale (1.5% + ₦100)
• 100 sales = ₦85,000 in fees
• You keep: ₦4,915,000

With Bonzai Pro (5% starting rate):

• Fee: ₦2,500 per sale (5%)
• 100 sales = ₦250,000 in fees
• You keep: ₦4,750,000

But here’s the game-changer: As your revenue grows with Bonzai, your fees automatically decrease. Once you hit certain revenue milestones, you could be paying just 2%, 1%, or even 0.7% – far less than Paystack’s fixed 1.5%.

Scenario: Monthly Revenue of ₦5,000,000

With Paystack:

• Approximate fees: ₦80,000 – ₦100,000/month
• Annual fees: ₦960,000 – ₦1,200,000

With Bonzai Pro (at 4% tier for >₦5M/month):

• Fees: ₦200,000/month (4%)
• Annual fees: ₦2,400,000

With Bonzai Pro (at 1% tier for >₦30M/month):

• Fees: ₦50,000/month (1%)
• Annual fees: ₦600,000

Plus, with Bonzai, you get course hosting, email marketing, and community features that would cost you thousands of naira extra with other platforms.

When to Choose Bonzai Pro Over Paystack

Choose Bonzai Pro if you:

• Sell digital products (courses, ebooks, templates)
• Offer coaching or consulting services
• Run paid communities or memberships
• Want to accept crypto payments
• Need an all-in-one creator platform
• Want lower fees as you grow
• Value having everything in one place

Stick with Paystack if you:

• Run a traditional e-commerce store with physical products
• Need integration with specific Nigerian banking systems
• Require POS terminals for in-person payments
• Already have your own course platform and just need payment processing
• Process very small transactions frequently (under ₦2,500 where the ₦100 fee is waived)

Getting Started with Bonzai Pro

Ready to save on transaction fees while getting more features?

👉 Visit https://selldigital.ng/g/bonzai to create your free Bonzai account

Setup takes just 2 minutes, and you can start selling immediately with:

• No upfront costs
• No monthly fees
• Lower transaction fees that decrease as you grow
• All creator tools included

Final Thoughts

Paystack’s fees of 1.5% + ₦100 per transaction (capped at ₦2,000) are competitive and transparent. For many businesses, especially those dealing with physical products or requiring extensive Nigerian banking integration, Paystack is an excellent choice.

However, if you’re a digital creator, course seller, coach, or consultant, Bonzai Pro’s lower fees (starting at 5% with no flat fees, decreasing to as low as 0.7%) combined with its all-in-one platform features can save you significant money while providing everything you need to run your online business.

The key is understanding your business model:

• High volume, low margin, physical products? Paystack might be your best bet.
• Digital products, courses, coaching, memberships? Bonzai Pro will likely save you money and provide more value.

Whatever you choose, always factor payment processing fees into your pricing strategy from day one. These costs are a reality of doing business online, but with the right platform, you can minimize them while maximizing your revenue.

Ready to reduce your payment processing fees? Create your free Bonzai Pro account at https://selldigital.ng/g/bonzaiand start monetizing your content today! 💰