What are Paga POS Charges and Commission Rates? When you hear about Paga POS charges and commission rates, many people worry because they think the fees are too high and will eat into their profits.
Paga POS (Point of Sale) is a service that allows businesses to accept payments from customers with cards or mobile money.
Every time you make a payment, Paga charges a small fee and depending on the amount and type of transaction, these fees can add up.
For some, it feels like the cost of doing business just got more expensive because the fees are taken out of their earnings.
You need to be aware of these charges because they affect what you take home after each sale.
As a business owner, knowing what fees apply helps you plan and make informed decisions.
Being aware of these charges also helps you know your profits and not get surprised when your payouts come in.
While the charges are part of using a POS system, knowing them helps you manage your business better and set prices that cover these costs.
By doing that, you ensure the business remains profitable and customers still have a convenient payment option.
What are Paga POS Charges and Commission Rates?
Paga POS Withdrawal Charges
Paga charges a fee for every withdrawal made on their terminal and the fee varies based on the amount you withdraw. The withdrawal fees are structured as follows:
- For amounts between N1,000 and N19,000, Paga charges 0.5What are Paga POS Charges and Commission Rates?5% of the withdrawn amount. For example if you withdraw N10,000 you will pay N55.
- For amounts between N20,000 and N99,000, Paga charges a flat fee of N100. Whether you withdraw N25,000 or N50,000 you will pay N100 as a transaction fee.
- For withdrawals above N100,000, Paga charges a flat fee of N150.
These fees might look reasonable but you should compare with other POS systems to see if it fits your business model. Generally Paga’s withdrawal fees are higher than other POS systems so do some research before committing.
Paga POS Deposit and Transfer Charges
Just like with withdrawals, Paga charges fees for deposit and transfer of funds on their POS terminals.
When you use Paga POS to deposit or transfer money to any Nigerian bank, the fee is a flat N30 per transaction, regardless of the amount you deposit.
The N30 flat fee is low but slightly higher than some other POS brands. This fee applies to all deposit transactions so whether you deposit N1,000 or N50,000 you will always pay N30.
If you’re someone who makes deposits or transfers frequently, this fee will add up over time so take note.
POS Charges for Bill Payments
Paga POS can also pay utility bills for electricity and cable TV. Bill payments on Paga POS comes with charges too. Here’s what you get:
- For electricity bill payments, commission rates vary by DISCO. Here are the rates:
- AEDC: 0.96%
- IKEDC: 1.2%
- IBEDC: 0.8%
- EEDC (Post-paid): 2%
- For cable TV subscriptions, commission rate is dependent on the service provider:
- DStv and GOtv: 1.2% – 1.4% of the amount paid for the subscription.
These bill payment services allows Paga POS agents to earn a small commission on every transaction, which can add up if you help customers pay their bills regularly.
If you live in a community where people often need help paying their electricity or cable bills, this could be a way to earn extra income.
RELATED: What is the Minimum Balance Required to Use a Paga POS?
Paga POS Charges for Airtime and Data Purchases
One of the most common transactions people do on a POS machine is buying airtime and data for their mobile phones. Paga POS agents can also earn commission on these types of transactions. Here’s how:
- For airtime and data purchases, commission rates vary by network:
- MTN: 1.6%
- Airtel: 2.8%
- Glo: 2.8%
- 9Mobile: 1.76%
So if you sell airtime or data to your customer, you get a percentage of the transaction amount.
For example, if a customer buys N1,000 airtime from you and the commission rate is 2.8%, you’ll get N28 for that transaction. This commission structure makes it easy for Paga POS agents to earn money with little effort.
Paga POS Daily Targets and How It Affects Your Earnings
One good thing about Paga POS is that they don’t have daily targets for agents. This means you don’t have to meet a specific target or quota of transactions daily.
But note that the more you transact, the more you can earn in commission.
Although there’s no daily targets, being active and regular in transactions is important.
If you don’t use the machine, Paga will reclaim the POS terminal from you. Also, the more you transact, the more you can earn commission whether it’s from airtime sales, bill payments or cash withdrawal.
Paga POS Commission for Agents
Paga POS agents can earn commission in several ways. As we mentioned earlier, agents can earn a percentage for transactions like airtime purchases, bill payments etc.
But how much you can make depends on the services you offer. Here’s a quick breakdown of how much you can earn as a Paga POS agent:
- Airtime and Data: As an agent, you can earn commission 1.6% to 2.8% for selling airtime and data for MTN, Airtel, Glo and 9Mobile.
- Cable Subscriptions: You can earn 1.2% – 1.4% for DStv and GOtv subscriptions.
- Electricity Bill Payments: Depending on the DISCO, you can earn 0.8% to 2% for electricity bill payments.
These commissions may not seem much individually but can add up fast if you have a steady flow of customers.
And you don’t have to pay any upfront or complicated process—just do the transaction and you earn.
How to make more as a Paga POS Agent
To make more as a Paga POS agent:
- Offer Multiple Services: The more services you offer, the more chances you have to earn commission. Focus on popular services like airtime sales, bill payments and money transfers.
- Be Busy: Try to do as many transactions as possible. Although there’s no daily target, being an active agent will make you earn more in the long run.
- Build Customer Loyalty: Treat your customers well and they will come back. If people know you offer good service, they will use your Paga POS services regularly.Treat your customers well and they will come back. If
Conclusion
Paga POS is a good option for anyone who wants to start a business or become an agent in Nigeria. Knowing the charges and commission is key to making informed decisions.
Paga charges fees for withdrawals, deposits and bill payments but you can earn commission for airtime sales, cable subscriptions and bill payments. If you want to become a Paga POS agent, make sure you know the fees and commission so you can manage your earnings.
With dedication and active participation, Paga POS can become a profitable way to make money while offering valuable services to your community.
FAQs
1. What is Paga POS?
Paga POS is a payment service that allows you to accept payments through Point of Sale (POS) devices. It’s a mobile solution for easy card payments and is used by many businesses in Nigeria to improve customer payment experience.
2. What are the fees or charges for Paga POS?
Fees for Paga POS vary by transaction type. The main fees are:
- Transaction Fees: There’s a fee of around 0.75% to 1.5% of the transaction value for card payments. But this rate may vary depending on your agreement with Paga.
- Monthly Maintenance Fee: Some businesses may have to pay a monthly maintenance fee depending on their agreement with Paga.
- Withdrawal Fees: If you withdraw funds from the Paga POS device to your bank account, there might be a small fee for each transaction, around ₦30 to ₦50 depending on the type of withdrawal.
3. How do Paga POS commission rates work?
Paga POS commission rates depend on the total volume of transactions you process. You can negotiate lower rates if you process more payments. Paga charges a commission rate of around 0.75% to 1.5% depending on the volume of transactions you process monthly.
4. Are there any hidden fees for Paga POS?
No, Paga is transparent with its fees. All fees for Paga POS (transaction fees, withdrawal fees, maintenance fees) are disclosed when you sign up or get a device. You’ll know all the fees before you start using Paga POS.
5. Can I reduce my Paga POS fees?
Yes, you can. If you process large volumes of transactions over time Paga may offer you a lower transaction fee as part of a deal or special offer. Also Paga’s team can work with your business to get better terms if needed.
6. Is Paga POS for small business?
Yes! Paga POS is perfect for small business, affordable and flexible payment solutions with no big upfront cost. The device is easy to use and can accept debit cards, credit cards and even online bank transfer. Fees for small business are low so Paga POS is great for shops, restaurants or market vendors.
7. How can I see the charges or commissions on my Paga POS account?
Paga gives business owners a way to track POS transactions, fees and commissions. After each transaction, business owners get a detailed transaction report which includes the commission deducted for each payment made. You can also track your fees through the Paga app where you can see reports and check your POS account status. This way you can see the charges and monitor your profit.
