How to calculate transaction fees in Malaysia (2026)

Key Takeaways:

• Transaction fees follow a core formula — (Transaction Amount × Rate) + Fixed Fee — but the true cost involves multiple layers that stack on top of each other.

• The formula changes depending on the fee type: payment gateway, FPX, bank transfer, and marketplace fees are each calculated differently.

• Using a multi-currency account with Airwallex can remove the foreign exchange conversion layer entirely, cutting your effective rate on international payments.

Knowing how to calculate transaction fees in Malaysia sounds simple — until you realise the formula changes depending on the type of payment you're dealing with.

A card payment through a payment gateway works differently from an FPX transfer, which works differently again from a Shopee or TikTok Shop sale.

This guide walks you through how to calculate transaction fees in Malaysia across the four types you'll encounter most often: payment gateway fees, bank transfer fees, FX fees, and marketplace fees.

Each section gives you the formula, a worked RM example, and the local nuances that affect your actual cost.

What is a transaction fee?

A transaction fee is the cost charged every time money moves from one party to another — from a customer to your business, from your business to a supplier, or between accounts in different currencies. It is an umbrella term, not a single charge.

In practice, Malaysian businesses encounter four main types:

1. Payment gateway fees (charged when a customer pays by card or e-wallet)

2. Bank transfer fees (charged on domestic or international wire transfers)

3. FX fees (charged when currency is converted)

4. Marketplace fees (deducted by platforms like Shopee or TikTok Shop before they pay out your earnings).

Each type follows its own fee structure and formula.

If you want a deeper breakdown of gateway fee types, see our guide to payment gateway fees in Malaysia. For where foreign exchange costs come from, see our guide to foreign transaction fees in Malaysia.

The basic transaction fee formula

Most payment fees share a common structure: a percentage of the transaction value plus a fixed amount per transaction. Once you know the two numbers, the calculation is straightforward.

Total transaction fee = (Transaction amount × Rate) + Fixed fee

Here is how to apply it step by step:

1. Identify the transaction amount — the gross value the customer pays.

2. Find your rate — the percentage your gateway or provider charges (often called MDR or processing rate).

3. Multiply the transaction amount by the rate.

4. Add the fixed fee.

5. Subtract the total from the transaction amount to find your net receipt.

Using a RM500 transaction at a 2.9% rate with a RM1.00 fixed fee:

• (RM500 × 2.9%) + RM1.00 = RM14.50 + RM1.00 = RM15.50 in fees

• What you receive: RM500.00 − RM15.50 = RM484.50

The effective rate formula

The effective rate is the actual percentage of revenue you lose to fees across all transactions. It accounts for fixed fees, minimum charges, and any other costs that the headline MDR does not capture.

Here’s the formula: 

Effective rate = Total fees paid ÷ Total transaction value

If you paid RM620 in fees on RM20,000 of revenue in a month, your effective rate is 3.1%, even if your stated MDR is 2.9%. The gap between those two numbers is where hidden costs live.

Your effective rate gives you a single number to track over time. If it rises, your payment mix has shifted or a new fee has been introduced. If it falls, a process change is working.

How to calculate payment gateway fees in Malaysia

Payment gateways in Malaysia use a percentage-plus-fixed fee structure called the Merchant Discount Rate (MDR). But the number on your rate card is not your full cost. You also need to account for SST on the service charge.

Before diving into the calculations, note that this section focuses on the formula.

For a full breakdown of every fee type — setup fees, monthly minimums, e-wallet charges, and more — see our guide to payment gateway fees in Malaysia.

Card and MDR fees

Start with the base formula:

Total gateway fee = (Transaction amount × MDR) + Fixed fee

Take a RM500 transaction at an MDR of 1.90% with a fixed fee of RM0.50:

(RM500 × 1.90%) + RM0.50 = RM9.50 + RM0.50 = RM10.00

That is your base processing cost. In Malaysia, your payment gateway also charges SST at 8%¹ on its service fee (not on the transaction value itself). Applying that to the example:

SST = RM10.00 × 8% = RM0.80

Total cost = RM10.00 + RM0.80 = RM10.80

Your net receipt on a RM500 sale is RM489.20, not RM490.00.

FPX fees

Financial Process Exchange (FPX) works differently from card payments. Instead of a percentage-based MDR, FPX uses a flat fee per transaction — set by PayNet and passed through your acquiring bank or gateway:

Total FPX cost = PayNet base fee + Acquirer margin

Because the fee does not scale with transaction size, FPX becomes proportionally cheaper as order values rise. On a RM50 transaction, a flat RM0.50 FPX fee represents 1.0% of the sale. On a RM2,000 transaction, that same flat fee represents just 0.025%.

Chargeback fees

Chargeback fees are fixed per disputed transaction. Your gateway deducts this amount regardless of whether the dispute is resolved in your favour.

The per-dispute amount may look small in isolation, but a high dispute rate adds directly to your effective rate — and too many chargebacks can trigger a higher MDR tier from your gateway.

How to calculate bank transfer fees in Malaysia

Bank transfer fees work differently from gateway fees.

Instead of a percentage-plus-fixed structure, they typically combine a flat transfer charge with a separate foreign exchange conversion cost — and these can be charged by more than one party along the way.

Domestic transfers (DuitNow and IBG)

For domestic ringgit transfers, most Malaysian banks offer DuitNow as a real-time payment option. DuitNow transfers are generally low-cost or free for retail and business accounts, though your bank's specific fee schedule may vary. Check your bank's tariff page directly to confirm.

Interbank GIRO (IBG) is a slower alternative and typically carries a small flat fee per transaction. The formula is straightforward:

Total fee = Flat transfer fee (charged by your bank)

For high-volume domestic payments, even a small flat fee adds up. Knowing your monthly transfer count helps you calculate the annual cost of staying on IBG versus switching to DuitNow.

International wire transfers (SWIFT/Telegraphic Transfer)

Cross-border bank transfers involve more moving parts. The full cost formula is:

Total cost = Outgoing transfer fee + Correspondent bank fee + FX conversion markup

Each element is charged separately and often by different institutions. Your Malaysian bank charges the outgoing transfer fee. Correspondent banks along the SWIFT route may deduct their own charges from the amount in transit — meaning the recipient can receive less than expected. The FX conversion markup is applied on top of that.

Because the FX layer is the largest and least transparent cost in cross-border transfers, it's covered in detail in our guide to foreign transaction fees in Malaysia.

How to calculate marketplace transaction fees in Malaysia

If you sell on Shopee or TikTok Shop, the platform deducts fees directly from your payout — you won't receive a separate bill. The fee is calculated on the order amount, not your listed price alone, which means shipping fees factor into the base.

Shopee transaction fees

Shopee charges a transaction fee of 3.78% (after SST)² of the final order amount paid by the buyer, including shipping.

From 16 July 2025, Shopee also charges a Platform Support Fee of RM0.50 (excl. SST)³ per completed order, making the full per-order deduction:

Total deducted = (Final order amount × 3.78%) + RM0.50 + SST on RM0.50

Worked example: A buyer pays RM200 for an item and RM10 for shipping.

• Transaction fee: RM210 × 3.78% = RM7.94

• Platform Support Fee (incl. 8% SST): RM0.50 × 1.08 = RM0.54

• Total deducted: RM8.48

• Seller payout: RM201.52

TikTok Shop transaction fees

TikTok Shop applies a transaction fee of 3.78%⁴ using this formula (effective 15 February 2026):

Transaction fee = (Original item price − Seller discount + Customer-paid shipping fee) × 3.78%

Worked example: Item at RM150, seller absorbs RM10 discount, buyer pays RM8 shipping.

• Fee base: RM150 − RM10 + RM8 = RM148

• Transaction fee: RM148 × 3.78% = RM5.59

The key difference from gateway MDR: marketplace fees are applied to the seller proceeds formula, not the gross checkout value. Shopee also pre-embeds SST into the 3.78% rate, so you don't calculate it separately on the transaction fee itself.

How to calculate your total effective rate

Individual fee rates tell you the cost of one payment type. The effective rate tells you the cost of your entire payments operation. It's the single most useful number for auditing what you're actually paying across all channels.

Here’s the formula:

Effective rate = Total fees across all channels ÷ Total revenue processed × 100

Say your business processes RM30,000 in revenue per month across three channels:

Effective rate: RM881 ÷ RM30,000 × 100 = 2.94%

That 2.94% is your real cost of payments, not the 2.5% MDR quoted on your gateway contract.

How to reduce transaction fees in Malaysia

Once you know your effective rate, the next question is how to bring it down. A few changes have an outsized impact.

1. Optimise your payment mix

FPX carries a flat fee rather than a percentage, so it gets proportionally cheaper as order values rise. If you're routing high-value domestic transactions through a card gateway, shifting some of that volume to FPX will lower your effective rate.

2. Reduce chargebacks

Each dispute carries a fixed fee regardless of outcome. Clearer product descriptions, accurate delivery timelines, and responsive customer service reduce dispute rates — and the fees that come with them.

3. Negotiate your MDR

Gateways typically offer lower MDR rates at higher monthly volumes. If your processing volume has grown since you signed your contract, it's worth requesting a review.

4. Eliminate unnecessary FX conversion

For businesses paying overseas suppliers or receiving international payments, the FX conversion markup is often the largest single cost in the effective rate calculation — and the most avoidable.

Save on unnecessary FX fees with Airwallex

Most transaction fees are unavoidable. Gateway MDR, FPX charges, and marketplace deductions are the cost of accepting payments through each channel. You can optimise them, but you can't eliminate them.

FX conversion fees are different. Every time you convert ringgit to pay an overseas supplier or convert foreign currency from an international sale back into ringgit, you pay a spread above the interbank rate. With a traditional bank, that spread is typically 2–4%, which quickly adds up.

Airwallex helps reduce these costs by minimising the number of currency conversions you need to make and offering more competitive FX rates when conversions are unavoidable. Here’s what you get with Airwallex Global Accounts:

• Hold 20+ currencies in one account. Instead of automatically converting funds back to MYR, you can hold balances in multiple currencies. If you receive USD from international customers, you can use those funds to pay USD expenses such as Google Ads, Meta Ads, or overseas suppliers. No conversion means no FX fee.

• Competitive FX rates. When you do need to convert, Airwallex offers FX rates from 0.4% above the interbank rate, helping you save up to 80% on FX fees.

• Send international payments without transfer fees. Pay suppliers, contractors, and business partners in 200+ countries and regions. We route 94% of transfers through local payment rails, helping you to eliminate transfer fees.

Frequently asked questions (FAQs)

How do you calculate a transaction fee percentage?

Multiply the transaction amount by the fee rate, then add any fixed fee: (Transaction Amount × Rate) + Fixed Fee. To find the percentage of revenue you're paying, divide total fees by total revenue and multiply by 100. This gives you your effective rate.

What is the effective rate in payment processing?

The effective rate is your total fees divided by your total revenue processed, expressed as a percentage. It's a more accurate measure than the advertised MDR because it accounts for fixed fees, SST, and other charges that stack on top.

How do I calculate FPX transaction fees in Malaysia?

FPX uses a flat-fee model rather than a percentage. Your total FPX cost is the acquirer's margin plus the PayNet processing fee, applied per transaction. Because the fee is fixed, it becomes proportionally cheaper on higher-value orders.

Is SST included in transaction fees in Malaysia?

It depends on the channel. Shopee embeds SST in its 3.78% transaction fee rate, so you don't calculate it separately. For payment gateways, SST at 8% is applied to the gateway's service fee as a separate charge — not to the value of the customer's purchase.

How do marketplace fees differ from payment gateway fees?

Payment gateway fees are charged on the gross transaction value at the point of payment. Marketplace fees — on platforms like Shopee and TikTok Shop — are deducted from your seller payout after the order is completed, and are calculated on a formula that includes the buyer's shipping contribution. Airwallex can help reduce the FX layer that often sits beneath both fee types for international transactions.

Sources:

1. mystods.customs.gov.my

2. seller.shopee.com.my/edu/article/3503

3. seller.shopee.com.my/edu/article/25269

4. seller-my.tiktok.com/university/essay?knowledge_id=7753792938985218

This publication does not constitute legal, tax, or professional advice from Airwallex nor substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Malaysia) Sdn. Bhd., a company incorporated under the laws of Malaysia with company registration number 201801007747 (1269761-X), is regulated as a licensed remittance business under the Money Services Business Act 2011 (Licence number 00743 with an expiry date of 3 August 2028, an E-Money Issuer and a registered merchant acquirer under the Financial Services Act 2013.)