Magnati Commission Rate 2025 UAE: Complete Guide
Magnati commission rate 2025 UAE: Guide to fees (1.8-3.8%), setup costs & optimization. Includes reconciliation solutions for Magnati.
Quick Answer
Magnati commission rate 2025 UAE ranges from 1.8% to 3.8% per transaction, with monthly gateway fees of AED 600-2,500, setup fees of AED 1,500-6,000, and processing fees of AED 0.75-1.75 per transaction. Rates vary based on transaction volume, business type, payment method, and FAB banking relationship. Magnati, the payment solutions subsidiary of First Abu Dhabi Bank (FAB), offers integrated banking services with faster settlement times for FAB customers. ReconcileOS provides automated Magnati commission tracking and reconciliation, ensuring 100% accuracy in fee calculation, identifying overcharges, and optimizing payment processing costs for UAE businesses.
Stop Overpaying on Magnati Commission Fees
Automatically track every Magnati commission charge, verify settlement accuracy, and identify fee discrepancies. ReconcileOS ensures 100% accuracy in Magnati commission reconciliation for UAE businesses.
Get Free DemoUnderstanding Magnati Commission Rate 2025 UAE
Magnati is the payment solutions subsidiary of First Abu Dhabi Bank (FAB), one of the largest banks in the UAE. As a leading payment processor in the Emirates, Magnati provides comprehensive payment gateway services for businesses of all sizes, from SMEs to large enterprises. Understanding Magnati commission rate 2025 UAE is essential for businesses seeking cost-effective payment processing solutions with integrated banking services.
With the UAE's digital payments market projected to reach USD 39.13 billion by 2027, growing at an 8.02% CAGR, selecting the right payment gateway with optimal commission rates directly impacts business profitability. Magnati's unique position as a bank-owned payment processor offers advantages including faster settlement times, integrated banking services, and seamless FAB account integration.
Magnati Commission Rate Structure 2025
Magnati's commission structure includes multiple fee components that businesses must understand for accurate cost planning:
Transaction Commission Rates
- Standard Rate: 1.8% to 3.8% per transaction
- Card-Present Transactions: 1.8% to 2.5% (lower risk, lower rates)
- Card-Not-Present (E-commerce): 2.5% to 3.8% (higher risk, higher rates)
- Volume Discounts: Businesses processing 10,000+ transactions monthly may qualify for rates as low as 1.8%
- FAB Customer Discounts: Existing FAB business account holders may receive 0.1-0.3% rate reductions
Additional Fees
- Monthly Gateway Fee: AED 600-2,500 (varies by plan and transaction volume)
- Setup Fee: AED 1,500-6,000 (one-time, may be waived for high-volume merchants)
- Processing Fee: AED 0.75-1.75 per transaction (in addition to commission percentage)
- Chargeback Fee: AED 60-175 per chargeback
- Refund Fee: AED 10-25 per refund
- Currency Conversion: 1-2% for international transactions
Factors Affecting Magnati Commission Rates
Several factors influence the Magnati commission rate 2025 UAE that businesses receive:
1. Transaction Volume
Transaction volume is the primary determinant of commission rates:
- Low Volume (0-1,000/month): Standard rates (2.5-3.8%)
- Medium Volume (1,000-10,000/month): Negotiated rates (2.0-3.0%)
- High Volume (10,000-50,000/month): Discounted rates (1.8-2.5%)
- Enterprise Volume (50,000+/month): Custom rates (1.8-2.2%)
2. Business Type and Industry Risk
Magnati categorizes businesses by risk level:
- Low-Risk: Retail, restaurants, services (1.8-2.5%)
- Medium-Risk: E-commerce, subscription services (2.5-3.2%)
- High-Risk: Travel, digital goods, certain services (3.0-3.8%)
3. Payment Method
- Card-Present (CP): Lower rates (1.8-2.5%) due to reduced fraud risk
- Card-Not-Present (CNP): Higher rates (2.5-3.8%) for online transactions
- Digital Wallets: Variable rates (2.0-3.0%)
4. FAB Banking Relationship
Businesses with existing FAB accounts may receive:
- 0.1-0.3% commission rate discounts
- Faster settlement times (T+1 vs T+2)
- Reduced setup fees or monthly gateway fees
- Integrated financial reporting and reconciliation
Magnati vs. Other UAE Payment Gateways
| Payment Gateway | Commission Rate | Monthly Fee | Key Advantage |
|---|---|---|---|
| Magnati | 1.8-3.8% | AED 600-2,500 | FAB integration, faster settlements |
| Network International | 1.5-3.5% | AED 500-2,000 | Largest processor, volume discounts |
| PayTabs | 2.85% + AED 1 | USD 50 | Transparent pricing, SME-friendly |
| Stripe | 2.9% + AED 1 | No monthly fee | No setup fees, global platform |
Stop Overpaying on Magnati Commission Fees
Automatically track every Magnati commission charge, verify settlement accuracy, and identify fee discrepancies. ReconcileOS ensures 100% accuracy in Magnati commission reconciliation for UAE businesses.
Get Free DemoHow to Negotiate Better Magnati Commission Rates
UAE businesses can optimize their Magnati commission rate 2025 UAE through strategic negotiation:
1. Leverage Transaction Volume
Demonstrate consistent transaction volume growth. Businesses processing 5,000+ transactions monthly typically qualify for 0.3-0.5% rate reductions. Provide 6-12 months of transaction history showing volume stability.
2. Maintain Low Chargeback Rates
Keep chargeback rates below 1% to demonstrate low risk. Low-risk businesses can negotiate rates 0.2-0.4% lower than standard pricing.
3. Utilize FAB Banking Relationship
If you have a FAB business account, leverage this relationship for better rates, faster settlements, and reduced fees. FAB customers often receive preferential treatment.
4. Commit to Long-Term Contracts
Multi-year agreements (2-3 years) may qualify for 0.2-0.3% rate reductions in exchange for commitment and volume guarantees.
5. Bundle Additional Services
Using Magnati for multiple services (gateway, acquiring, fraud prevention, analytics) can result in 0.1-0.2% discounts on transaction fees.
How ReconcileOS Solves Magnati Commission Tracking
ReconcileOS provides automated Magnati commission reconciliation that addresses common challenges businesses face:
1. Automated Commission Calculation
ReconcileOS automatically tracks Magnati commissions in real-time:
- Real-time commission calculation based on your agreed rates
- Automatic detection of rate changes or discrepancies
- Transaction-level commission breakdown
- Historical commission trend analysis
2. Settlement File Reconciliation
Never miss a commission error. ReconcileOS processes Magnati settlement files automatically:
- Automated PDF settlement file processing
- Transaction-to-payout matching with 99.9% accuracy
- Instant alerts for commission overcharges or underpayments
- Detailed discrepancy reports for dispute resolution
3. Commission Cost Optimization
Gain complete visibility into Magnati commission costs:
- Daily, weekly, and monthly commission reports
- Commission rate comparison with other gateways
- Profit margin analysis by transaction type
- Cost optimization recommendations
- FTA-compliant commission documentation for VAT reporting
Track Magnati Commissions Automatically
Stop losing money to commission errors. ReconcileOS ensures 100% accuracy in Magnati commission tracking and reconciliation for UAE businesses.
Get Free DemoMagnati Commission Rate Solutions Comparison
| Feature | ReconcileOS | Manual Tracking | Generic Accounting Software |
|---|---|---|---|
| Magnati Integration | ✅ Native support | ❌ Manual entry | ⚠️ Limited |
| Automated Commission Calculation | ✅ Real-time | ❌ Manual spreadsheet | ⚠️ Requires configuration |
| Settlement Reconciliation | ✅ Automated file processing | ❌ Manual matching | ⚠️ Limited integration |
| Discrepancy Detection | ✅ Instant alerts | ❌ Manual spotting | ⚠️ Basic reporting |
Top Benefits of Automated Magnati Commission Tracking
- Prevent Revenue Loss: Identify and recover commission overcharges immediately, potentially saving thousands of dirhams monthly
- Accurate Financial Planning: Understand true commission costs for better pricing and profit margin decisions
- Time Savings: Reduce commission reconciliation time from hours to minutes
- Audit Compliance: Maintain complete commission documentation for FTA audits and financial reviews
- Negotiation Power: Use accurate commission data to negotiate better rates with Magnati
- Real-Time Visibility: Monitor commission costs in real-time from a single dashboard
Frequently Asked Questions
Q: What is the standard Magnati commission rate 2025 UAE?
A: The standard Magnati commission rate 2025 UAE ranges from 1.8% to 3.8% per transaction, depending on transaction volume, business type, and payment method. Card-present transactions typically range from 1.8% to 2.5%, while card-not-present (e-commerce) transactions range from 2.5% to 3.8%. High-volume merchants (10,000+ transactions monthly) may qualify for rates as low as 1.8%.
Q: Do FAB customers get better Magnati commission rates?
A: Yes, businesses with existing First Abu Dhabi Bank (FAB) accounts may receive preferential Magnati commission rate 2025 UAE treatment, including 0.1-0.3% rate discounts, faster settlement times (T+1 vs T+2), reduced setup fees, and integrated financial reporting. The FAB banking relationship provides additional benefits for payment processing.
Q: What additional fees does Magnati charge beyond commission rates?
A: Beyond the Magnati commission rate 2025 UAE, additional fees include: monthly gateway fees (AED 600-2,500), setup fees (AED 1,500-6,000 one-time), processing fees per transaction (AED 0.75-1.75), chargeback fees (AED 60-175), refund fees (AED 10-25), and currency conversion fees (1-2% for international transactions). ReconcileOS automatically breaks down all fee components for complete transparency.
Q: How can I negotiate better Magnati commission rates?
A: Negotiate better Magnati commission rate 2025 UAE by demonstrating high transaction volume (5,000+ monthly), maintaining low chargeback rates (<1%), leveraging FAB banking relationships, committing to long-term contracts (2-3 years), and bundling additional services. High-volume merchants typically qualify for 0.3-0.5% rate reductions. Use ReconcileOS to track your commission costs and provide data-driven evidence during negotiations.
Q: How do I track and verify Magnati commission charges?
A: Use automated reconciliation software like ReconcileOS to track and verify Magnati commission charges. The platform automatically processes Magnati settlement files, calculates expected commissions based on your agreed rates, and flags any discrepancies or overcharges. Manual verification requires cross-referencing settlement files with transaction data, which is time-consuming and error-prone. Automated tracking ensures 100% accuracy and instant discrepancy detection.
Q: Is Magnati better than other UAE payment gateways?
A: Magnati offers unique advantages for FAB customers, including integrated banking services, faster settlement times, and preferential rates. However, the best payment gateway depends on your transaction volume, business type, and specific needs. Network International may offer lower rates for high-volume merchants (1.5-2.0%), while Stripe offers no monthly fees. Compare commission rates, fees, and features to determine the best fit. ReconcileOS helps you compare costs across all UAE payment gateways.
Ready to Automate Magnati Commission Tracking?
Start your free 14-day trial. No credit card required. Discover how automated Magnati commission reconciliation can save time, prevent revenue loss, and optimize payment processing costs.
Get Started FreeRelated topics: Payment Gateways Commission Rate 2025 UAE, Network International Commission Rate 2025, Payment Reconciliation UAE Complete Guide, Multi-PSP Reconciliation UAE
About the Author: This comprehensive guide to Magnati commission rate 2025 UAE is based on market research, customer interviews, and insights from ReconcileOS implementations across the Emirates. For more on payment gateway reconciliation, see our Payment Reconciliation UAE guide or the Payment Gateways Commission Rate 2025 UAE overview.
Ready to simplify reconciliation?
Tell us a bit about your setup and we’ll show you a tailored demo.
Continue Exploring
Discover more solutions and insights
Payment Reconciliation UAE | Complete Guide 2026
Payment reconciliation UAE software: Complete 2026 guide to automated settlement processing, multi-gateway matching & UAE compliance. Reduce errors by 95%
Small Business Bookkeeping UAE: Complete Guide 2025
Master small business bookkeeping in UAE with our complete 2026 Guide. Learn VAT compliance, financial record-keeping, and cost-effective solutions for SMEs in Dubai & Abu Dhabi.