What are iKhokha Transaction Fees?
Whenever you use an iKhokha card machine (or any iKhokha product) to accept a payment from a customer. A small transaction fee is always charged.
This fee is a small service fee taken by the banks or the chip company (VISA / Mastercard).
When it comes to transaction fees, different companies have different fee structures.
For every swiped transaction, iKhokha charges per-transaction fees starting from 2.75% – 2.50% Excluding VAT or 3.16% – 2.875% Including VAT.
The 2.75% Ex VAT is what gets charged when you use iKhokha for the first time and the 2.5% Ex VAT is what the fees can potentially be dropped to when your business turns over R100 000 a month.
To make life even better, iKhokha also provides a custom percentage fee discount for any business turning over R100 000 a month.
There is also a small daily settlement fee of R2.50 (Incl. VAT) that gets charged to settle amounts into your bank account.
Here is a table showing iKhokha fee discounts based on monthly turnover:
| Income |
iKhokha fees % (Ex. VAT) and Ex. Daily Settlement Fees |
iKhokha fees % (Incl. VAT) and Ex. Daily Settlement Fees |
|---|---|---|
|
R0 – R40k |
2.75% |
3.16%% |
|
R40 – R60k |
2.65% |
3.05% |
|
R60 - R80k |
2.55% |
2.93% |
|
R80 - R100k |
2.5% |
2.88% |
|
Over R100k |
Custom Discount |
Custom Discount |
This means, with iKhokha, you can potentially determine your first fee discount by just making sure you sell more products or increase your monthly sales turnover to at least R40 000 per month.
Or simply, by transacting at least R1333/day on a 30-day calendar month.
More to this, the R40 000/month turnover is not necessarily supposed to come from your card machine transactions only, but can also come from other iKhokha online sales tools such as their e-Commerce Payment Gateway, Pay Links, and more.
Why are iKhokha Fees the Cheapest for Small Business?
I understand the numbers above may be too much for the brains to digest.
So let me show you how iKhokha’s fees may be the cheapest for a small business to medium-sized business in South Africa:
Point 1: iKhokha Gives a Lower Fee Percentage than Other Companies
When you look at the fee structures of other companies such as Yoco, WAPPoint, SureSwipe, etc. Most of them offer a flat fee structure with a transaction fee that is slightly higher in percentage charged than iKhokha for starters.
Though all these other companies will similarly give you custom discounts based on your monthly turnover…
It is important to understand that if your business is really small, the probabilities are that you might struggle to hit their turnover breakpoints for the first couple of months as you sell your products.
In my realistic opinion, As a small business in South Africa, it is just better to start off with the lowest transaction fees and think about other benefits later.
Point 2: Does the Daily Settlement Fee Make iKhokha Expensive?
Yes and No, but most probably not. In fact, most of the time, what you can save with either iKhokha or other competing card machine companies is not going to be that much significantly different in a small business scenario. Here’s Why:
The iKhokha daily settlement fee is simply a fee charged for every settlement into your account – or a fee charged for a deposit of what you transacted from an iKhokha machine on that day.
This fee is only charged if you transacted more than R15 and is not charged if you didn’t use your card machine at all.
There is no VAT charged on a daily settlement fee.
If you think through this analytically, the daily settlement fee only works against you in comparison to other card machine companies if your business transacts fewer amounts on that day – mostly a total of 3 figure incomes in total at the end of a business day.
For example, if you only sold R200 worth of products on that day, You will be charged:
| Income | Card Machine Company | Transaction Fees % (Ex. VAT) | Total Charged (Incl. VAT) |
|---|---|---|---|
|
R200 |
iKhokha |
2.75% plus R2.50 Daily Settlement Fee |
R6.33 plus R2.50 Daily Settlement Fee = R8.33 |
|
R200 |
2.95% |
R5.79 |
|
|
R200 |
WAPPoint |
2.95% |
R5.79 |
However, your iKhokha fees become cheaper in comparison to other card machine companies if you generally transact a total of 4-figure incomes and above in total.
i.e Your iKhokha fee percentage is way less in comparison and the daily settlement fee ends up having an insignificant impact.
For example, Here is how much you get charged in fees if you sold R2500 worth of goods:
| Income | Card Machine Company | Transaction Fees % (Ex. VAT) | Total Charged (Incl. VAT) |
|---|---|---|---|
|
R2500 |
iKhokha |
2.75% plus R2.50 Daily Settlement Fee |
R79.06 plus R2.50 Daily Settlement Fee = R81.56 |
|
R2500 |
2.95% |
R84.81 |
|
|
R2500 |
WAPPoint |
2.95% |
R84.81 |
As you can see, the daily settlement fee will only give you a headache if you your business transacts less in a given day.
Plus you end up saving against other card machine companies if your business transacts upwards of 4-figure incomes in total a day.
If you wish to remove daily settlements fees altogether, there are obviously ways you can avoid it. Here’s what you can do:
Tips for Reducing iKhokha's Daily Settlement Fee ✅
- If your business receives tips, Use your iKhokha App and card machine to ask customers for tips, then use tip money to cover your daily settlement fees.
- Encourage your early Customers to swipe more by telling them you only take card payments for amounts over a specific amount (e.g R20) or that you charge an extra R1 (going into bank charges) when less than R100 is transacted.
- Most customers understand this concept very well and won’t mind paying the extra R1 or bumping their purchase to more than what you generally accept.
Point 3: Your iKhokha Fees Discount Stays Forever
As you have seen from the iKhokha’s fees table above, iKhokha will reduce the percentage of transaction fees by 0.1% based on the total volume of amounts you transacted in 30 days.
Once you have hit a certain fee discount milestone, the good news is that your fees will not go back up even when your business does less in the next coming months.
Though this fee discount concept is similarly used as a marketing concept by other card machine companies in South Africa. It is important to understand that iKhokha’s Fee Percentages are generally less to start with.
Final Takeaways:
As you have seen, iKhokha Fees are one of the fairest, if not the cheapest. They are the best for those who are just starting out and also for as you grow.
Again, for years, iKhokha has consistently been offering its card machines at the cheapest prices compared to its competition.
Also, for peace of mind, iKhokha’s staff also offers free delivery and help with setting up the card machines.
If you are considering buying an iKhokha card machine and will need it to be fully set up upon delivery, Simply choose your desired card machine and Fill in a quick pre-registration.
Thereafter, a sales consultant from iKhokha will contact you back and help you with everything else. Here are the card machines to pick from:
iKhokha Card Machine Promo Deals ↴
Buy iKhokha Mover Now with EXTRA 10% Discount, Free Delivery and Setup Help
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