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Why are Mamo's transaction fees higher than other providers?
Why are Mamo's transaction fees higher than other providers?
Updated over a week ago

If you are working with a payment provider that offers you lower fees, this may be possible for multiple reasons. Below are a few of these reasons as well as questions you could ask your provider before speaking with our sales team.

Hidden fees

This is the most common reason why some providers appear cheaper than others. Hidden fees come in all shapes and sizes. They range from settlement fees, fixed fees, FX fees (charges for non-AED currency payments), etc.

Always ensure your provider gives you a clear and transparent end-of-month statement of fees. And always double-check that the price you signed up for is the price you're actually being charged each month.

In-person vs. "card not present" pricing

Generally speaking, when you accept payments in person using POS terminals, you will always avail a lower transaction fee than if you were to accept payments remotely. Why? Well, card-present transactions generally eliminate a lot of the fraud risk that is always present in our industry. Therefore, when comparing pricing between your provider and Mamo, it's important that you compare Mamo with your provider's "card not present" pricing.

Miscoded MCCs

Sometimes, your payment provider may be offering you lower pricing through something called MCC miscoding. This happens when your business's industry is misclassified (intentionally or not) by the payment provider. Since different industries have different transaction fees, a payment provider may classify your business as an industry with a lower fee.

Although this may sound beneficial, keep in mind that there are huge risks with this including the payment provider being fined by Visa or Mastercard and the fine being passed on to you. It is also not a sustainable practice and should raise alarms on the integrity and reliability of your current provider.

Always ask your provider which MCC you are classified under, and see if it matches your business's true sector.


Often times, you may be getting favorable pricing on the payment acceptance side of things while being over-charged (to make up for it) elsewhere (eg. loans? credit cards? etc).

Always compare your providers holistically across all of the financial services they offer you.

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