Key Principles of Till Charges
Merchant-Focused Pricing:
- Charges are primarily borne by the business (merchant)
- Customer payments are generally free to encourage adoption
- Fee structure designed to support business operations
- Graduated pricing based on transaction volumes and amounts
Percentage-Based Model:
- Most charges calculated as percentage of transaction value
- Maximum cap limits to protect businesses from excessive fees
- Minimum charges for very small transactions
- Different rates for different transaction types
Who Pays What
Customer Charges:
- Standard Payments: FREE for customers
- Fuel Station Payments: Customer pays transaction fee
- Large Amount Payments: Standard M-Pesa send money charges may apply in some cases
Merchant Charges:
- Collection Fees: Percentage of amount received
- Transaction Processing: Per-transaction charges
- Value-Added Services: Additional feature charges
- Withdrawal Fees: When moving money from till
Lipa na M-Pesa Buy Goods (Till Number) Charges For Customers Making Payments
Standard Till Number Payments
General Rule: Customer payments of KSh 200 and below have no charges. Generally, customers incur no fees when making payments using Lipa na M-Pesa Buy Goods, with the notable exception of payments made at fuel stations, where specific charges may apply.
Customer Charges:
- KSh 1 - 200: FREE (No charges to customer)
- Above KSh 200: FREE (except at fuel stations)
- Fuel Stations: Specific charges may apply (varies by station)
Fuel Station Exception
Special Fuel Station Charges: All M-Pesa to Till Number transactions are free for the customer except for Till Numbers at Petrol Stations. There are customer charges for payments made using Lipa na M-PESA Buy Goods at fuel stations.
Why Fuel Stations Are Different:
- Special regulatory considerations
- Higher transaction processing costs
- Industry-specific agreements with Safaricom
- Charges vary by individual fuel station
Checking Fuel Station Charges:
- Ask at the fuel station before payment
- Test with small amount first
- Check SMS confirmation for actual charges
- Contact customer care for clarification
Charge Examples:
| Transaction Amount | Collection Fee | Merchant Receives |
|---|---|---|
| KSh 100 | FREE | KSh 100 |
| KSh 200 | FREE | KSh 200 |
| KSh 500 | KSh 2.50 | KSh 497.50 |
| KSh 1,000 | KSh 5.00 | KSh 995.00 |
| KSh 5,000 | KSh 25.00 | KSh 4,975.00 |
| KSh 10,000 | KSh 50.00 | KSh 9,950.00 |
| KSh 20,000 | KSh 100.00 | KSh 19,900.00 |
| KSh 40,000+ | KSh 200.00 | Amount - 200 |
Lipa na M-Pesa Buy Goods (Till Number) Charges For Businesses Receiving Payments
Business Till Charges
Standard Business Charges: Businesses receiving payments via a Buy Goods Till are charged a maximum of 0.5% of the transaction amount, capped at KSh 200 per transaction.
Detailed Business Charge Structure:
- Collections KSh 200 and below: FREE
- Collections above KSh 200: 0.5% of transaction amount
- Maximum charge per transaction: KSh 200
- Break-even point: KSh 40,000 (0.5% = KSh 200)
Fuel Station Customer Charges (2026):
| Amount Range | Customer Fee |
|---|---|
| KSh 1 - 100 | FREE |
| KSh 101 - 500 | KSh 7 |
| KSh 501 - 1,000 | KSh 13 |
| KSh 1,001 - 1,500 | KSh 23 |
| KSh 1,501 - 2,500 | KSh 33 |
| KSh 2,501 - 3,500 | KSh 52 |
| KSh 3,501 - 5,000 | KSh 69 |
| KSh 5,001 - 7,500 | KSh 87 |
| KSh 7,501 - 10,000 | KSh 95 |
| Above KSh 10,000 | KSh 108 |
Lipa na M-Pesa Buy Goods (Till Number) Charges for Outgoing Transactions from Till
When businesses make payments from their Buy Goods Till, different charges apply based on the destination:
Pay to Other Business Tills (Buy Goods):
- Rate: 0.27% of transaction value
- Cap: Maximum KSh 200 per transaction
- Use Case: Paying suppliers, business partners, or other merchants
Pay to Mobile Numbers (Send Money):
- Rate: Standard M-Pesa send money charges apply
- Purpose: Staff payments, customer refunds, personal withdrawals
- Charges: Same as personal M-Pesa send money rates
Pay to Paybills:
- Rate: Varies by receiving organization's tariff
- Common Usage: Utility payments, government payments, loan repayments
- Structure: Each paybill sets its own customer charge structure
Withdrawal Charges
Agent Withdrawals:
- Rate: Standard M-Pesa agent withdrawal charges
- Range: KSh 11 to KSh 309 depending on amount
- Frequency: Per withdrawal transaction
- Locations: Any authorized M-Pesa agent
Bank Withdrawals (RTS):
- M-Pesa Fee: 0.27% capped at KSh 200
- Bank Fee: Varies by receiving bank (often free for business accounts)
- Speed: Real-time settlement
- Availability: 23+ partner banks
ATM Withdrawals:
- Fee: Standard ATM charges (KSh 33-45)
- Limit: KSh 35,000 per day
- Access: Limited ATM network with M-Pesa integration
Important Notes
- No Charges for Customers: Standard Buy Goods payments are free for customers (except fuel stations)
- Free Small Transactions: Collections of KSh 200 and below are completely free for businesses
- Rate Reduction History: Safaricom reduced merchant fees from 1% to 0.5% to encourage digital payments
- Application Processing: Till applications processed within 10 minutes (Individual) or 24 hours (Business/Organization)
- Customer Care: Dedicated merchant support available at 2134
