Fees checked 23 October 2026. Payment providers change their rates. Confirm current fees, and whether VAT applies to them, before you sign.
For most online stores, payment fees cost more each year than the platform subscription. The cheapest-looking gateway isn’t always the cheapest once you add your real mix of local and international cards, monthly fees, and platform charges.
The main options
| Option | How it’s priced (as published) | Good for |
|---|---|---|
| Shopify Payments | UAE plans: 2.9% + AED 1 (Basic), 2.8% + AED 1 (Grow), 2.7% + AED 1 (Advanced) for online cards | Shopify stores: no extra Shopify fee, simplest setup |
| Stripe | 2.9% + AED 1 for domestic cards; +1% for international cards; +1% if currency conversion is needed. No monthly fee. | WooCommerce and custom sites; subscriptions and payment links |
| Telr (a UAE gateway) | Monthly plan by volume: AED 249/month with 0% transaction fees up to AED 9,999/month; then AED 199 + 2.45% + AED 1; AED 99 + 2.35% + AED 0.50; and from AED 50,000/month, AED 0 + 2.25% + AED 0.50. International cards +0.5%. Fees subject to 5% VAT. Trade licence required. | Stores wanting a local provider, payment links and invoices, Tabby built in |
| Other local gateways and bank acquirers | Usually quoted individually | Higher volumes, negotiated rates |
| Cash on delivery | No payment fee from Shopify; your courier charges for COD collection | Customers who prefer to pay on delivery |
| Instalments (Tabby, Tamara) | Merchant fees quoted by the provider; the provider pays you upfront | Higher-value baskets |
The Shopify third-party fee
If you use a gateway other than Shopify Payments on Shopify, Shopify adds its own transaction fee: 2% on Basic, 1% on Grow, 0.6% on Advanced, on top of the gateway’s fees. Manual methods such as cash on delivery don’t carry it. Check how your chosen instalment provider is treated too. See Shopify vs WooCommerce in the UAE.
A worked example
200 card orders a month at an average of AED 300 (AED 60,000 a month), 15% on international cards. Published rates only, before VAT on fees:
| Option | Monthly fees (approx.) |
|---|---|
| Shopify Payments (Basic) | 2.9% × 60,000 + 200 × AED 1 = AED 1,940 |
| Stripe (no currency conversion) | 1,940 + 1% × 9,000 international = AED 2,030 |
| Telr Medium plan on WooCommerce | 2.25% × 60,000 + 200 × 0.50 + 0.5% × 9,000 = AED 1,495 |
| Telr Medium plan on Shopify Basic | 1,495 + Shopify’s 2% third-party fee (AED 1,200) = AED 2,695 |
These are calculations from published price lists, not quotes. Your rates may differ, and international customers paying in other currencies add conversion costs. The comparison sheet does this with your own numbers.
What else to check
| Question | Why it matters |
|---|---|
| How fast are payouts, and is there a reserve? | Cash flow, especially for new businesses |
| Apple Pay and Google Pay supported? | Faster checkout on phones |
| Which currencies can customers pay in, and in which currency are you paid out? | Conversion fees on both sides |
| Refund fees? Is the original fee returned? | Stripe, for example, doesn’t return the original processing fee on refunds |
| Dispute (chargeback) fees and process? | Stripe lists AED 60 per dispute received |
| 3D Secure and fraud tools included? | Fewer chargebacks |
| Native integration with your platform? | Fewer things to break |
| Payment links and invoices for WhatsApp and Instagram sales? | Many UAE stores sell in chats too |
| Licensing and onboarding requirements? | Trade licence, documents, approval time |
Cash on delivery
COD is still important for many UAE stores, but it has costs that don’t appear on the gateway comparison: courier COD fees, failed deliveries, cash reconciliation and delayed cash flow.
- Confirm COD orders before dispatch (a WhatsApp confirmation helps).
- Consider a COD fee or a minimum order, or offer a small incentive for card payment.
- Reconcile courier remittances weekly. See syncing Shopify orders to accounting.
Instalments
Buy-now-pay-later providers like Tabby let customers split payments while you receive the full amount upfront (Tabby describes 4 interest-free payments or plans up to 12 months). They can help higher-value baskets and reduce price as a barrier at checkout. Ask for the merchant fee for your category, and check it doesn’t trigger extra platform fees.
Frequently asked questions
Can we use more than one gateway?
Yes. Many stores offer cards through one provider, plus COD and an instalment option. Each extra option is another integration to maintain and reconcile.
Should we show prices in other currencies?
If many customers are from abroad, local-currency pricing can help, but check conversion fees for you and the customer.
Do payment fees include VAT?
Some providers state their fees are subject to VAT (Telr’s UAE prices note 5% VAT). Check with each provider and your accountant how this is invoiced.
If you’d like help choosing and setting up payments for your store, that’s part of our online store service.
Free download · Excel calculator
Payment gateway cost comparison
Enter your monthly orders, average order value and share of international cards. The sheet compares monthly fees for Shopify Payments, Stripe and Telr's published plans, including Shopify's third-party fee.
Download itNo sign-up. Opens in Excel, Google Sheets or Numbers.
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