Commerce guide
Yoco, iKhokha and SnapScan: which one actually costs you less
Three South African ways to take payment, priced against each other at the turnover levels a small business actually trades at.
Three South African ways to be paid, priced against each other at the turnover levels small businesses actually trade at. The answer changes depending on how your customers pay, not on which brand you prefer.
What each one charges
Yoco has three plans. Core is free monthly and charges 2.30 percent on local debit up to R50 000 of monthly turnover, dropping to 1.35 percent between R50 000 and R200 000. Plus is R249 a month and Pro R499, each buying slightly lower rates.
iKhokha charges no monthly rental on any machine. Its in person local card rate starts at 2.75 percent and steps down to 2.65, 2.55 and 2.5 percent as monthly turnover passes R40 000, R60 000 and R80 000. SnapScan charges no monthly fee and a standard 2.95 percent, falling as turnover grows. Every one of those figures excludes VAT.
The debit and credit trap
Yoco's headline rates apply to local debit cards. Its credit card rate is 2.30 percent on Core and stays at 2.30 percent whether you turn over R10 000 or R190 000. It does not improve with volume the way the debit rate does.
iKhokha's tiered rate applies to local cards without that split. So a merchant whose customers pay mostly by credit card is comparing 2.30 percent against 2.75 to 2.5 percent, which is a much closer contest than the debit comparison suggests. Get your own debit and credit split from a settlement report before deciding.
Worked example at R30 000 a month
On mostly debit card turnover of R30 000, Yoco Core costs 2.30 percent, or R690, with no monthly fee. iKhokha costs 2.75 percent, or R825. SnapScan costs 2.95 percent, or R885. Yoco is cheapest by about R135 a month.
Now add hardware. If iKhokha's R699 machine replaces a more expensive one, that gap closes over the first year. And if a meaningful share of that R30 000 is credit rather than debit, the difference narrows again.
Where the paid plans stop making sense
Yoco Plus costs R249 a month and saves about two tenths of a percentage point on debit at low volume. That needs roughly R125 000 of monthly debit turnover before the fee pays for itself. Pro at R499 needs more still.
Below those levels, Yoco Core is the better Yoco. Buy the paid plans for the features, meaning loyalty, multiple locations or table management, rather than for the rate, unless your turnover genuinely justifies it.
What separates them beyond price
iKhokha runs support 24 hours a day on phone and WhatsApp, which nobody else at this end of the market does, and its machines start at R699 with no rental. Settlement is next business day with FNB and Absa and twice daily with Nedbank.
SnapScan has no hardware at all, which makes it the cheapest way to start and the easiest to run at a market stall, but the customer needs a smartphone and data. Yoco has the broadest business tooling of the three and the strongest point of sale features on its paid plans.
Common questions
01Is Yoco or iKhokha cheaper?
On local debit cards at low turnover, Yoco Core at 2.30 percent is cheaper than iKhokha at 2.75 percent, both excluding VAT. iKhokha has cheaper hardware from R699 and no monthly rental at any tier. On credit cards the two are much closer.
02Which card machine has no monthly fee?
Yoco Core, all iKhokha machines and SnapScan all have no monthly fee. Yoco Plus at R249 and Pro at R499 do, and those only pay for themselves at high monthly turnover.
03Is SnapScan cheaper than a card machine?
Usually not on rate, at 2.95 percent excluding VAT. It is cheaper to start with, because there is no hardware to buy, which makes it attractive for irregular or low volume trading.
Editorial note
This guide is general buying guidance and not accounting, legal or tax advice. Amounts and deadlines set by SARS change, so confirm the current figures for your own business before you rely on them.