Tabby Merchant Fees: Complete Breakdown for UAE Sellers

Tabby does not publish a fixed rate card. Pricing is negotiated per merchant and disclosed at application. Based on publicly reported merchant data for UAE sellers in 2026, the typical range runs 2.99%–3.99% per transaction plus a fixed fee of AED 1–2 per order. Here is how the fee structure works and how it compares to Tamara and Postpay.

Quick answer: Tabby’s merchant fee has two components — a variable commission rate (reported range 2.99%–3.99% per transaction for UAE sellers) plus a fixed fee per successful order (reported range AED 1–2). Both components include payment gateway charges. No monthly fee, no setup fee. You are paid in full upfront. Exact rates are disclosed at application stage and specified in your merchant agreement.

Tabby Merchant Fee Structure

Tabby’s published pricing policy, per their official help page, describes two fee components applied to every successful order:

Notes on this table:

• The 2.99%–3.99% range is based on publicly reported merchant data for UAE sellers in 2026 from Huptech Web, a UAE-based Shopify Plus agency. Tabby does not publish a standard rate card; your specific rate depends on industry, transaction volume, and business profile.
• The 6.9% + AED 1 rate applies specifically to merchants integrating Tabby through MamoPay as a third-party processor. This is a reseller markup, not Tabby’s direct merchant rate. Per MamoPay’s published help documentation (verified July 2026).
• Both fee components, per Tabby’s official documentation, already include payment gateway charges. There are no additional gateway fees layered on top.

How Tabby’s Fee Structure Works

Tabby operates a merchant discount rate (MDR) model. When a shopper completes a BNPL purchase at your store, Tabby pays you the full order amount minus the MDR. You receive a net settlement. The shopper repays Tabby in installments.

The two-component structure:

The variable commission rate is the percentage charged against the order value. On a AED 400 order at a 3.5% rate, that component is AED 14. The fixed fee per order applies regardless of order value. At AED 1.50 per order, your total fee on that AED 400 transaction is AED 15.50 — an effective rate of 3.875%.

Why rates vary by merchant:

Tabby’s rate depends on factors including your product category, average order value, monthly transaction volume, and overall business profile. Categories with higher consumer default risk or higher return rates typically attract higher rates. Fashion and apparel merchants commonly see different rates than electronics retailers, even at similar volumes.

What the MDR covers:

Tabby’s fee includes payment processing costs, consumer credit assessment, and fraud risk absorption — Tabby bears the default risk, not you. Unlike direct card processing where you absorb chargebacks, Tabby’s MDR is all-in: once an order is approved, you receive full settlement regardless of whether the consumer repays on schedule.

MDR Calculator: What You Actually Pay at Different Order Sizes

The interaction of the percentage rate and the fixed per-order fee changes your effective MDR significantly at lower order values.

Using the reported 3.5% rate + AED 1.50 fixed fee as a mid-range example:

At AED 150 order: 3.5% = AED 5.25 + AED 1.50 = AED 6.75 total (4.5% effective MDR)

At AED 300 order: 3.5% = AED 10.50 + AED 1.50 = AED 12.00 total (4.0% effective MDR)

At AED 500 order: 3.5% = AED 17.50 + AED 1.50 = AED 19.00 total (3.8% effective MDR)

At AED 800 order: 3.5% = AED 28.00 + AED 1.50 = AED 29.50 total (3.69% effective MDR)

At AED 1,200 order: 3.5% = AED 42.00 + AED 1.50 = AED 43.50 total (3.625% effective MDR)

The pattern: the fixed fee pulls up your effective MDR most at lower order values. For UAE stores with average order values below AED 200, the per-order fixed fee adds meaningful cost relative to the percentage component. Negotiating the fixed fee matters more at low AOV; negotiating the percentage rate matters more at high AOV.

Tabby vs Tamara vs Postpay: Fee Comparison

All three major UAE BNPL providers follow the same model: negotiate per-merchant, not a published rate card. Here is what the publicly reported data shows:

Data notes: Tabby and Tamara rate ranges per Huptech Web UAE Shopify Plus merchant data (June 2026). Tamara’s fixed fee is estimated as structurally similar. Postpay does not publicly disclose their MDR. Tabby minimum order per Arabian Business reporting. Tamara minimum per Tamara’s published merchant terms (AED 99 for split payments at participating merchants, verified July 2026). All rates require verification with each provider’s merchant team before signing.

Where the real differences are:

The fee structures are broadly similar across Tabby and Tamara for UAE sellers. The differences that matter for your decision are not the MDR:

Geographic strength: Tabby delivers higher approval rates on UAE-resident shoppers. Tamara delivers higher approval rates on Saudi-resident shoppers (relevant if you sell across GCC). Per Huptech Web’s reported data from UAE Shopify Plus merchants, Tabby’s UAE approval rate runs 60–80%; Tamara’s UAE approval rate runs 55–75%.

Product structure: Tabby’s standard product is Pay in 4 (four monthly installments). Tamara’s standard product is Pay in 3 (three monthly installments). Both offer longer-term financing for select categories.

Minimum order: Tabby’s AED 300 minimum excludes lower-value purchases. Tamara’s lower minimum (AED 99 per published merchant terms) makes it available to more transaction types.

Postpay: Postpay is Dubai-founded and has a smaller merchant network than Tabby or Tamara. They do not publish a rate card, and merchant fees are negotiated individually. For UAE-focused stores, Postpay is typically a third option to evaluate after establishing Tabby and Tamara, not a first-choice BNPL provider.

The fee parity takeaway: At similar MDR ranges, the financial cost of running Tabby versus Tamara is comparable. The decision factor is which provider your specific shoppers prefer and where they have credit data.

Settlement and Payout Terms

Settlement is one of Tabby’s core merchant benefits. You receive full payment for the order amount (minus the MDR) when the order is approved. You do not wait for the consumer to complete their four installment payments.

What this means for your cash flow:

On a AED 400 BNPL order at 3.5% + AED 1.50, Tabby settles AED 384.50 to you when the transaction is processed. Tabby’s consumer repayment schedule is their operational problem, not yours.

Refunds: When a shopper returns an order, you process the refund through your standard Shopify or platform flow. Tabby handles the consumer side (reversing the installment plan). The MDR is not refunded on returned orders in most standard agreements — verify the refund fee policy in your specific merchant contract before committing.

Settlement timing: Tabby does not publish a standard settlement timeline. Confirm your specific settlement schedule at the merchant onboarding stage — timing affects working capital planning more than the MDR percentage for high-volume stores.

Negotiating Your Tabby Merchant Rate

Tabby’s default rate at application is the starting point, not a fixed ceiling. The structure is similar to payment gateway rate negotiations.

When to negotiate:

Rates are typically renegotiable once your BNPL volume establishes a clear pattern. UAE Shopify Plus merchants processing more than AED 500K per month in BNPL volume are typically in a position to request a rate review, per Huptech Web’s Shopify Plus merchant guidance. At AED 1M+ monthly, the negotiation lever is more meaningful — a 0.5 percentage point reduction on AED 12M annual volume saves AED 60,000 per year.

What to negotiate:

For high-AOV stores (AED 600+ average), focus on the percentage rate. A lower percentage rate matters more than the fixed fee at high order values.

For lower-AOV stores (AED 150–300 average), negotiate the fixed per-order fee. The fixed component inflates your effective MDR most at lower values, as the calculator above shows.

How to approach it:

Request a merchant account review through your Tabby account manager. Bring volume data: monthly transaction count, average order value, category, and return rate. Low return rates with high AOV is a stronger negotiation position than volume alone.

Frequently Asked Questions

What is Tabby’s merchant fee in the UAE?

Tabby does not publish a fixed rate card. Merchant fees are disclosed at the application stage and specified in each merchant’s contract. Based on publicly reported data from UAE Shopify Plus merchants in 2026, the typical range is 2.99%–3.99% per transaction plus a fixed fee of AED 1–2 per order. Your actual rate depends on your product category, transaction volume, and business profile. The only way to confirm your specific rate is to apply through Tabby’s merchant portal at tabby.ai/business.

Does Tabby charge merchants a setup fee or monthly fee?

No. Per Tabby’s published business information, there are no setup fees and no monthly fees. You pay only when a BNPL transaction is successfully processed. If an order is declined by Tabby’s approval system, no fee is charged.

How does Tabby’s MDR compare to standard card processing fees in the UAE?

Standard card processing fees for UAE merchants typically run 2.3%–3.0% plus a fixed AED amount for domestic cards, with higher rates for international cards (per CensusPay’s UAE payment solutions guide, 2025). Tabby’s reported 2.99%–3.99% range is 0.5–1.5 percentage points above typical card processing costs. The premium is the cost of Tabby absorbing the consumer credit risk, eliminating chargebacks on BNPL orders, and the average order value uplift that BNPL delivers. Per industry data from UAE Shopify merchants, BNPL users typically spend 30–80% more per order than non-BNPL checkout sessions, which offsets the higher MDR on most AOV-eligible product categories.

Can I negotiate a lower Tabby merchant rate?

Yes, though Tabby will not confirm a published threshold for rate negotiations. Based on publicly reported UAE merchant guidance, stores processing significant BNPL monthly volume are typically able to request a rate review. Bring your volume data, average order value, and return rate when requesting a review. Higher-volume merchants with low-return categories are in the strongest negotiating position.

Does Tabby’s fee cover chargebacks and fraud?

Yes. When Tabby approves a BNPL transaction and processes settlement, you receive full net payment regardless of whether the consumer repays on schedule. Tabby absorbs the consumer default risk. This is structurally different from card processing, where you bear chargeback exposure. The higher MDR relative to card processing is partially explained by this risk transfer.

Keep Reading

• Buy Now Pay Later for Ecommerce UAE — hub overview: all BNPL providers, integration guides, and ROI calculators for UAE sellers