Tabby BNPL Merchant Fee Calculator
Calculate official Tabby merchant discount rates (MDR), VAT deductions, and upfront net bank settlements across the United Arab Emirates, Saudi Arabia, and Kuwait.
Customer pays 1st installment at checkout; remaining 3 installments are collected automatically every month. Merchant receives the entire net payout upfront.
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Pass Fee to Client (Legal Surcharge Engine) Calculate zero-shortfall compliant markup & legal surcharge limits
• United States: Visa & Mastercard cap credit card surcharges at 3.00% (effective April 2023). Surcharging debit or prepaid cards is strictly illegal under federal operating rules.
• UK & European Union: Surcharging consumer debit and credit cards is prohibited under PSD2. B2B / corporate card surcharges remain permitted.
• Australia: Governed by RBA; surcharging is legally restricted strictly to the merchant's actual cost of card acceptance.
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Tabby Merchant Fee Matrix Across GCC Order Values (2026)
Detailed breakdown for UAE (4.99% + 1 AED + 5% VAT) and Saudi Arabia (5.49% + 1.5 SAR + 15% VAT):
| Cart Value | Tabby UAE Fee (4.99% + 1) | UAE Net Settlement | Tabby KSA Fee (5.49% + 1.5) | KSA Net Settlement | Gross-Up Target |
|---|---|---|---|---|---|
| 150.00 | -8.91 AED | 141.09 AED | -11.20 SAR | 138.80 SAR | 159.80 |
| 300.00 | -16.77 AED | 283.23 AED | -20.67 SAR | 279.33 SAR | 318.50 |
| 500.00 | -27.25 AED | 472.75 AED | -33.29 SAR | 466.71 SAR | 530.20 |
| 1,000.00 | -53.45 AED | 946.55 AED | -64.86 SAR | 935.14 SAR | 1,059.40 |
| 2,500.00 | -132.04 AED | 2,367.96 AED | -159.56 SAR | 2,340.44 SAR | 2,647.00 |
Tabby GCC Fee Architecture & Settlement Mechanics (2026)
Tabby operates as the dominant Buy Now Pay Later network across the GCC. While standard payment gateways (like Stripe or Checkout.com) take 2.9%, Tabby charges an enterprise merchant discount rate justified by customer acquisition economics:
Tiered according to retail sector and regional jurisdiction (4.99% UAE, 5.49% KSA under SAMA regulatory guidelines).
Mandatory tax assessed exclusively on the Tabby processing fee, eligible as input tax credit on corporate VAT filings.
Merchants receive the full purchase amount in T+2/T+3 days. Tabby absorbs 100% of customer credit default and late payment risk.
Mathematical Gross-Up & Margin Defense Equation
Merchants selling luxury goods, electronics, or fashion must protect unit contribution margins when offering Pay in 4. Use this exact gross-up equation:
For a UAE merchant wanting 500 AED net payout: (500 + (1.00 × 1.05)) / (1 - (0.0499 × 1.05)) = 530.20 AED. Deducting Tabby's 4.99% + 1 AED + 5% VAT leaves exactly 500.00 AED in your bank account.
4 Strategic Protocols for Middle East Merchants Using Tabby
Follow these executive operational rules to maximize revenue without surrendering profit margins:
Configure your Shopify/WooCommerce checkout to offer Tabby only for orders exceeding 150 AED or 200 SAR. Low ticket items below 50 AED suffer disproportionately from fixed ticket fees.
Rather than treating Tabby as a processing expense, treat the 2% premium over Stripe as an ad spend that generates a proven 35% lift in average order value.
Ensure your store profile, promotional banners, and discount drops are indexed inside the Tabby consumer mobile app to capture high-intent shoppers searching across Dubai, Abu Dhabi, and Riyadh.
When processing customer returns, issue store credit or exchange where feasible. Refunding directly through Tabby triggers automatic installment cancellations for the buyer.
Tabby vs Standard Credit Cards in UAE (On 500 AED Order)
| Payment Method | Processing Fee | Merchant Fee on 500 AED | AOV & Conversion Impact | Default Risk |
|---|---|---|---|---|
| Tabby (Pay in 4) | 4.99% + 1.00 AED | 25.95 AED | +35% AOV / +20% Checkout Conv. | 0% (Tabby assumes risk) |
| Stripe UAE (Cards) | 2.90% + 1.00 AED | 15.50 AED | Standard Baseline | Merchant bears chargeback risk |
Frequently Asked Questions About Tabby Fees & Settlements
What are Tabby merchant fees for Buy Now, Pay Later in the UAE and Saudi Arabia in 2026? ▾
Tabby charges merchants a commission between 4.99% and 5.99% plus a fixed transaction fee (typically AED 1.00 / SAR 1.00) on completed orders. Tabby settles the full order balance upfront to the merchant within 3 to 5 business days, assuming all credit risk.
How does Tabby Pay in 4 work for online consumers in the GCC? ▾
Tabby allows consumers in the UAE, Saudi Arabia, Kuwait, and Bahrain to split purchases into 4 equal interest-free installments billed bi-weekly or monthly to their debit or credit card, with zero interest or late fees charged to consumers.
Why do GCC e-commerce stores integrate Tabby despite the 5% merchant fee? ▾
Merchants adopt Tabby because it systematically increases average order value (AOV) by 30% to 50%, reduces cart abandonment, and significantly reduces Cash on Delivery (COD) return and refusal rates across the Middle East.
How does Tabby handle customer credit risk and default liability? ▾
Tabby assumes 100% of consumer credit and fraud risk. If a shopper defaults on installment payments, the merchant keeps their full upfront settlement with zero recourse or chargeback clawbacks.
How does local VAT apply to Tabby merchant fees in the UAE and Saudi Arabia? ▾
In the UAE, Tabby commissions are subject to 5% VAT. In Saudi Arabia (KSA), Tabby service fees are subject to 15% ZATCA VAT. Registered merchants receive monthly electronic tax invoices to claim input tax credits.
Can Tabby be used for physical in-store retail checkout? ▾
Yes. Tabby provides in-store POS integrations via Tabby Card (digital Apple Pay / Google Pay wallet card) or in-store cashier QR scanning, enabling retail merchants to offer BNPL at physical counters.
How does Tabby compare to Tamara in Saudi Arabia and the UAE? ▾
Tamara is headquartered and heavily dominant in Saudi Arabia (SAMA regulated), while Tabby has historical dominance in the UAE. Both charge comparable 5.0% to 5.5% merchant fees and deliver near-identical conversion lifts.
How do I calculate net merchant payout on a 500 AED sale via Tabby (5.49% + 1 AED)? ▾
Tabby fee = (500 * 0.0549) + 1.00 = 27.45 + 1.00 = 28.45 AED. 5% VAT on fee = 1.42 AED. Total deduction = 29.87 AED. Net payout = 470.13 AED.
Verified Methodology & Primary Legal Sources 2026 Audit
All calculation logic, statutory caps, and tax models are cross-referenced with official merchant agreements.