Payment costs depend on the provider, the payment method, and your agreement. A channel that suits one business may cost more for another, so compare actual charges before changing how you accept payments.
Check the current M-PESA tariffs
Safaricom's published Business Till tariff states that the business is charged up to 0.5% per collection transaction, capped at KSh 200. It also lists customer payments of KSh 200 or less as free. Rates can change, so check Safaricom's latest tariff before using these figures in your plans.
Paybill, Pochi la Biashara, bank transfers, and card payments have different charges and conditions. Review the current Paybill tariff and the terms provided by each payment provider. Check which party pays each fee and whether other charges apply when you withdraw or transfer money.
Compare your payment options
For each option you use, record:
- The amount charged per transaction or as a percentage
- Any minimum or maximum fee
- Withdrawal or bank transfer charges
- Fees for reversals, refunds, or other services
- Which fees are paid by your business and which by your customer
Then compare the fees with your transaction records. Consider the payment amounts and customer experience as well as cost; a cheaper option may not fit every sale or customer.
Keep fee records with your accounts
Review provider statements and record charges in your bookkeeping system. Compare the total fees with the payment activity for the same period, and investigate differences before relying on the totals in a report.
SokoWise helps you manage sales and payment records in one workspace. Check the payment and reporting features available to your account, and keep provider statements as supporting records.
Review your costs when provider terms change or your payment mix shifts. Explore SokoWise payment collection features to see the payment workflows available to your business.