Yoco vs iKhokha vs SnapScan vs Paystack: how to compare the fees

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Four names dominate South African small business payments: Yoco, iKhokha, SnapScan and Paystack. People search for them in pairs, trying to settle one question: which is cheapest? The honest answer is that they do different jobs. Some are card machines, some are online gateways and some do both, and their fees are built in different ways.

This guide does not crown a winner. It shows you how to compare them fairly for your own sales, using the rates reported in recent guides as worked examples. Those rates change, the sources disagree in places and some are more than two years old. Treat every figure here as a starting point and confirm it on the provider's own pricing page.

What is each provider mainly for?

Because the structures differ, the comparison has to be made on the same footing: the same turnover, the same average sale and the same VAT treatment.

Which rates do recent guides report?

From the sources reviewed, these are the figures reported. They are not quotes.

• Yoco: the free Core plan at 2.30%, until a rolling three-month average of R50,000 a month is reached. Above that, debit drops to 1.35% while credit stays at 2.30%. Paid Plus (R249 a month) and Pro (R499 a month) plans lower the base rate further. Online payments are reported at about 0.5 percentage points more than machine fees by one source and at 2.95% plus R2 by another.
• iKhokha: one source lists 2.75%, falling to 2.5% plus R2.50 per payout, and an older article describes 2.5% commission and R2.50 per transaction settled.
• SnapScan: a once-off R999 machine fee, and 2.95% excluding VAT, falling with turnover, with no monthly fee, according to a recent source. An older article gives 2.5%, so the rate has changed.
• Paystack: 2.9% plus R1 online, with no monthly or setup fee. It does not sell card machines.

How do you compare card machines on in-person sales?

For in-person sales, the card machine providers can be compared on a single month. Take R20,000 of card sales, using the headline percentages above, before VAT and ignoring payout fees and machine cost.

On this basis, the lowest headline percentage costs R130.00 a month less than the highest on R20,000 of sales. But three other things can change the answer.

1. The machine. One-off machine costs spread over the period you use it. A R999 machine used for three years adds about R28 a month.
2. Payout fees. A fee per payout adds up if you are paid out daily. R2.50 on 30 payouts is R75.00 a month.
3. Debit and credit. If your provider charges less for debit and most of your customers use debit, the headline rate overstates your cost.

Add each of these to the comparison, so you are comparing the all-in monthly cost. Our guide to the effective rate shows how.

Worked example with payouts and the machine

An example comparison for R20,000 a month of sales, paid out daily (30 payouts), over a three-year period, using the reported rates before VAT.

The order barely changes, but the gap between the first and second widens once payout fees are counted. These are illustrative, since the machine cost for iKhokha was not stated in the sources.

How do you compare online payments?

Online gateways like Paystack charge a percentage plus a fixed amount per payment. The fixed amount is small, but it has an outsized effect on small payments. At 2.9% plus R1, the effective rate depends heavily on the average order.

An online shop with an average order of R50 pays an effective rate of 4.90%, while one with R1,000 orders pays 3.00%. A gateway with a lower fixed fee, or a higher percentage and no fixed fee, may suit small orders better. That is the logic in our guide to per-transaction fees.

Which suits which kind of business?

The same provider can be the right choice for one business and the wrong one for another. Three common situations show how the factors interact.

• A new market stall or mobile service with uncertain sales. A flat percentage with no monthly fee and no contract keeps risk low. A plan with a monthly fee only pays off if sales reach its break-even.
• A busy shop with steady, debit-heavy sales. A plan that prices debit lower can save money, so check whether a paid plan's lower rate outweighs its monthly fee at your volume.
• An online shop with small orders. The fixed amount per payment matters more than the headline percentage, so compare effective rates at your average order, and consider a gateway with a lower fixed fee.

In each case the method is the same: put your own monthly sales, average sale and VAT basis into the comparison.

What should you check before you choose?

1. Decide what you need: in-person, online or both.
2. Find your monthly sales and average sale.
3. Get the current pricing page for each provider and note the date.
4. Put every rate on the same VAT basis.
5. Add machine, payout and monthly fees.
6. Check the debit and credit split.
7. Check the contract: minimum term, cancellation and what happens to a machine you bought or rented.
8. Calculate the all-in effective rate for your own sales.
9. Re-check once a year, since rates and plans change.

For a wider view of the market, see our South African card machine fees guide.

What mistakes do people make?

• Comparing a before-VAT rate with an after-VAT one. 2.30% plus VAT is about 2.65%.
• Ignoring payout fees. They can add more than a small rate difference.
• Choosing a plan for a turnover you do not have. A monthly fee only pays off above its break-even.
• Using an online gateway rate for in-person sales, or the reverse.
• Relying on an old article. Rates change, and several sources are more than two years old.

For consultants

South African merchants often arrive with a provider already in mind, based on a name they trust. Do not argue with the name. Put their monthly sales, average sale and VAT basis into a comparison and show the all-in cost in rands for each option. If their current provider is already the best fit, say so, and the merchant will remember it. The checkmyrates calculator is set up for ZAR and lets you enter the monthly fee, per-payout fee and per-transaction fee separately.

Frequently asked questions

Which is cheaper, Yoco or iKhokha?

On the headline percentages reported in recent guides, Yoco's Core plan at 2.30% is lower than iKhokha's 2.75%. Payout fees, machine costs and your debit and credit split can change the total, so compare on your own sales and confirm current rates.

How much does Paystack charge?

Guides report 2.9% plus R1 per online transaction, with no monthly or setup fee. Paystack does not sell card machines. Confirm the current rate on its pricing page.

Does SnapScan charge a monthly fee?

A recent source reports no monthly fee on its card machine, a one-off machine cost and 2.95% before VAT. Check the current terms with SnapScan.

Are these fees before or after VAT?

Many are quoted before VAT. Ask each provider, and put all quotes on the same basis before you compare.

Which is best for a small online shop?

It depends on your average order. A fixed fee per payment weighs most on small orders, so compare the effective rate at your own average order.

Should I switch if another provider is cheaper?

Compare the all-in cost on your own sales, including machine, payout and monthly fees, and check any contract terms. Only switch if the saving is worth the change.

Figures in this guide are examples to show the method. Fees, rules and rates change, so check your own statement, contract and current rules before you decide. This is general information, not financial or legal advice.