Security Bank Collect and N∅FEE: Comparing Transaction Fees and Settlement Speed

What started as an internal cash flow tool is now available to customers. Below is a factual comparison of two very different payment models.

Every time an online payment happens in the Philippines, someone pays a price that is not written on the receipt. That hidden cost is the Merchant Discount Rate, or MDR. It is the fee that banks and payment gateways charge businesses for the privilege of accepting digital payments. For a small retailer, those fees might feel like a necessary evil. For a high volume wholesaler operating on razor thin margins, they can mean the difference between staying profitable or slowly bleeding out.

This article compares two very different approaches to online payments. One comes from a traditional bank with decades of history. The other comes from a tech driven wholesaler that decided to build its own solution. Both solve the same basic problem of getting money from a buyer to a seller. But they go about it in completely opposite ways.

We will look at Security Bank Collect, which is a proper payment gateway offered by one of the Philippines leading banks. Then we will examine NØFEE Direct Settlement, a proprietary system developed by the Clickerwayne Group of Companies for use on its own sites like Wholesale Dito Store and Low Price Dito. The goal here is not to declare a winner. The goal is to help you understand which model fits your specific business needs.

What Is Security Bank Collect?

Security Bank Collect is a digital payment collection service built for Filipino businesses. It comes in two flavors. LinkCollect lets merchants generate secure payment links that can be sent through messaging apps and social media. WebCollect integrates directly into a merchant website checkout page.

The service accepts a wide range of payment channels. Customers can pay using Visa and Mastercard cards, both local and foreign issued. They can also use e-wallets like GCash, Maya, Alipay, WeChat Pay, and UnionPay. QR PH and InstaPay are listed as coming soon.

To use Security Bank Collect, a business must first have a Security Bank BusinessPlus account. The onboarding process involves creating an account, verifying an email address, adding business details, and completing two factor authentication through Google Authenticator. New accounts get trial access first, then full access after one banking day if all requirements are met.

For WebCollect, the process takes longer. Security Bank works with a partner company called Magpie.IM, Inc. to discuss website needs, finalize details, and set up integration. This typically takes one to two weeks.

What Is NØFEE Direct Settlement?

NØFEE Direct Settlement is not a payment gateway in the traditional sense. It is an in-house proprietary checkout system developed by the Clickerwayne Group of Companies, the tech company behind WholesaleDito.store and LowPriceDito.com. The system replaces third party payment gateways with a direct transfer model.

NØFEE was built by a team with deep experience in banking technology, including direct work with core banking systems like Hogan. That background shaped the system's core design principle: verify transactions in real time without storing sensitive customer data. The result is a payment method that prioritizes speed, privacy, and zero gateway fees.

NØFEE was originally developed as an internal tool for monitoring corporate bank accounts. As the company grew and processed more transactions, the limitations of third-party payment gateways became apparent. Rather than accept rising costs and unpredictable settlement delays as unavoidable, the company chose to enhance its internal system and offer it to customers. NØFEE is the result of that decision.

Here is how the current version works. A customer shops on the website as usual. At checkout, they choose NØFEE Direct Settlement instead of a regular payment gateway. The screen shows the corporate bank account details including the account name, bank name, amount due, and order number. Each piece of information has a copy icon next to it so the customer can click and paste directly into their banking app.

The customer then selects their preferred payment channel from buttons that include GCash, Maya, GoTyme, and an option for other banks. Clicking a button copies the corporate account number to the clipboard and redirects the customer to their selected app or site. In the banking or e-wallet app, the customer initiates a transfer. They choose Security Bank as the receiving bank and paste the account number. They enter the exact amount due. Then they confirm and complete the transfer.

Here is where the system differs from a standard bank transfer. The name on the customer bank account or e-wallet must exactly match the personal or company name provided during checkout. This is called an identity match requirement. It serves as an additional layer of verification to prevent fraud and ensure that the person paying is the person who placed the order.

Once the transfer is successful, the customer returns to the checkout screen. The system detects the funds in real time using Server Sent Events, or SSE. The order status updates automatically and a confirmation email is sent to the registered email address. No manual confirmation button is needed. No last four digits are requested. The process is fully seamless from the customer perspective.

The name NØFEE comes from the fact that there is no Merchant Discount Rate charged. Because there is no payment gateway acting as a middleman, there is no percentage fee taken from the transaction.

Fee Structures Compared

This is where the two services differ most dramatically.

Comparison at a Glance

Security Bank Collect operates on a per transaction fee model. For local Visa, Mastercard, and JCB cards, the merchant pays 3.3 percent plus a fixed fee of 10 Philippine pesos. For foreign issued cards, the rate jumps to 4.4 percent plus the same 10 peso fixed fee. E-wallet rates are lower but still significant. GCash costs 2.6 percent. Maya costs 2.2 percent. Alipay, WeChat Pay, and UnionPay cost 2.4 percent.

There is also a withholding tax to consider. Under BIR Revenue Regulation Number 16 2023, the payment acquirer withholds 0.5 percent tax on the gross remittance. The final amount credited to the merchants account is net of service fees and this withholding tax.

To give a concrete example from Security Banks own materials. A 1000 peso transaction paid through a local card results in a 43 peso transaction fee plus a 5 peso withholding tax. The net amount received is 952 pesos. The same 1000 peso transaction paid through GCash results in a 26 peso fee and 5 peso tax, netting 969 pesos. Through Maya, the merchant nets 973 pesos.

NØFEE Direct Settlement takes a completely different approach. Because there is no payment gateway involved, there is no Merchant Discount Rate. The customer pays the exact amount of the order plus value added tax and, if applicable, the logistics fee. There is no deduction for payment processing.

On Wholesale Dito Store checkout page, the difference is shown clearly. A regular payment gateway adds a transaction fee to the total. NØFEE adds zero percent and also provides a logistics discount. For a business processing many transactions, the cumulative savings can be substantial.

However, there is an important caveat. NØFEE Direct Settlement is currently only available on the Clickerwayne owned and managed websites and Progressive Web Applications (PWA). The company states that a commercial version for other merchants is in development but has no official release date yet. So for most business owners reading this, NØFEE is not something you can install on your own store today. It is a proof of concept and a proprietary solution for one specific merchant.

Settlement Speed and Cash Flow

Money in the bank today is worth more than money in the bank next week. That basic principle of business finance makes settlement speed a critical factor in choosing a payment solution.

Security Bank Collect promises settlement within three banking days. The official terms state that after a buyer successfully pays, collections will be sent to the merchants Security Bank BusinessPlus Account within three banking days, net of service fees and withholding tax. The actual transfer uses PesoNet, which has its own cut off times. Transactions received after the 12 midnight cut off are processed the next business day.

Three banking days means a Friday afternoon sale might not land in the account until Wednesday or Thursday of the following week, depending on holidays. For a business with tight cash flow, that waiting period can be challenging. Delayed settlement was one of the challenges the company experienced when using third-party gateways. This highlighted the value of a faster, more predictable settlement option, which NØFEE now provides.

NØFEE Direct Settlement does not have a settlement waiting period because the money goes directly into the merchant corporate bank account at the moment the customer completes the transfer. The PVGP system detects the incoming funds in real time. From the merchant perspective, the funds are available as soon as the bank transfer clears, which for InstaPay is usually within seconds. This allows the business to restock inventory, pay suppliers, or ship orders without delay. For high volume wholesale operations, this speed can be a competitive advantage.

That said, instant settlement carries its own risks. Traditional payment gateways provide chargeback protection and dispute resolution mechanisms. When money moves directly from buyer to seller without a gateway in the middle, those protections are not automatically present. The merchant assumes more responsibility for handling disputes directly with the customer.

Transaction Limits and Volume Tiers

Security Bank Collect uses a tiered system based on weekly collection volume. The Bronze tier covers zero to 199,999 pesos per week. Silver covers 200,000 to 499,999 pesos. Gold covers 500,000 to 999,999 pesos. Platinum covers one million pesos and above.

New accounts start at Bronze. To upgrade to Silver, the merchant must successfully collect payments through both cards and e-wallets for one week. Upgrades from Silver to higher tiers require submission of supporting documents. These include sales invoices, delivery receipts, and official receipts that match the requested weekly limit.

The tier system appears designed to manage risk and ensure compliance. By requiring documentation for higher volumes, Security Bank protects itself and its customers from potential fraud or irregular activity. For legitimate businesses, this is a manageable process. But it does requires keeping good records and submitting requests via email.

NØFEE Direct Settlement has no published transaction limits for buyers. The company states that any order size can use the method. There is no tier system and no need to request limit increases. The only practical limit is the daily transfer limit imposed by the buyers own bank or e-wallet, which varies by institution. The identity match requirement adds a layer of verification that helps manage risk without needing volume based tiers.

Security, Data Privacy, and Identity Verification

Security is often discussed in terms of encryption and compliance certificates. But the two services take fundamentally different approaches to where and how customer financial data is stored.

Security Bank Collect operates as a regulated payment gateway under the oversight of the Bangko Sentral ng Pilipinas. The service uses standard security protocols including Verified by Visa and Mastercard Secure Code for 3D Secure authentication. Merchants must comply with Payment Card Industry Data Security Standards, known as PCI DSS. The terms and conditions also require compliance with the Data Privacy Act of 2012.

Customer payment information passes through Security Bank systems and those of its partner Magpie.IM, Inc. This is the normal flow for any bank backed gateway. The data is protected by regulation and industry standards. But it does reside on third party servers. For some customers, that is an acceptable trade off for the convenience of card payments.

NØFEE Direct Settlement takes a different philosophical stance. The system is designed so that customer banking information never touches the merchants servers. The customer initiates the transfer from their own banking app or e-wallet. The system then independently verifies the incoming funds within the designated corporate account.

The identity match requirement is a notable feature. The name on the customer bank account or e-wallet must exactly match the personal or company name provided during checkout. This serves several purposes. It prevents someone from using a stolen bank account to make a purchase. It ensures that business purchases are made from legitimate company accounts. And it creates a clear audit trail linking the buyer identity to the payment source.

Because sensitive data never leaves the customers own trusted banking environment, the risk of a data breach on the merchant side exposing full account details is effectively zero. The only information the merchant receives is the name match confirmation and the fact that a payment has arrived. This approach aligns with growing consumer concern about digital privacy and data collection.

However, there is a trade off. Traditional payment gateways offer dispute resolution and chargeback mechanisms that protect buyers from fraudulent merchants. With direct settlement, if a buyer pays and the merchant does not deliver, the buyer has less recourse through the payment system itself. The buyer would need to pursue remedies through the bank or legal channels. The identity match requirement helps prevent fraud before it happens, but it does not replace the consumer protection features of a regulated gateway.

User Experience and Checkout Flow

The checkout experience determines whether a customer completes a purchase or abandons the cart. Both services have designed their flows with specific priorities in mind.

Security Bank Collect offers two paths. LinkCollect generates a payment link that can be sent via messaging apps. The customer clicks the link and chooses a payment method. This is useful for businesses that take orders through social media or chat applications. WebCollect adds a pay button to the merchants own website. The customer stays on the site to complete the purchase.

The variety of payment options is a strength. Customers who prefer credit cards can use them. Customers who prefer e-wallets have multiple choices. This flexibility can reduce cart abandonment because customers are more likely to find a method they trust and know how to use.

NØFEE Direct Settlement has a streamlined flow that has evolved significantly from its early days. The current checkout process works like this.

Step 1: Customer reaches payment screen showing account name Clickerway Zelle Solutions Inc, bank Security Bank Corporation, amount due, and order number. Each detail is copyable with one click.

Step 2: Customer selects payment channel from GCash, Maya, GoTyme, or Other Banks and is redirected to their banking app.

Step 3: Customer pastes account number, enters recipient name, enters exact amount, and confirms transfer in their banking or e wallet app.

Step 4: Customer returns to checkout screen. Order status updates automatically from pending to paid with no manual confirmation. Email confirmation is sent.

Total time: Under one minute for InstaPay transfers.

The customer reaches the payment screen. The page displays the account name, which is Clickerwayne Zelle Solutions Inc. The bank name is Security Bank Corporation. The amount due is shown clearly with a copy icon next to it. The order number is also shown with a copy icon. Every piece of information the customer needs is right there, and each can be copied with a single click.

Below the details, payment channel buttons appear. GCash, Maya, GoTyme, and an option for other banks. The customer clicks their preferred button. The corporate account number is copied to the clipboard automatically. The customer is redirected to their selected app or site.

Inside the banking or e-wallet app, the customer selects Bank Transfer. They choose Security Bank from the list of receiving banks. They paste the account number that was automatically copied. They enter the recipient name, which they can also copy from the payment screen. They enter the exact amount due. They confirm the transfer.

Once the transfer is successful, the customer returns to the checkout screen. They do not need to click any manual confirmation button. The system uses Server Sent Events to detect the funds in real time. The payment status area on the page updates automatically. The order status changes from pending to paid. A confirmation email is sent to the registered email address.

The entire process from clicking the payment button to receiving confirmation can take under a minute for InstaPay transfers. The removal of all manual verification steps, combined with the copy and paste shortcuts, makes the flow as frictionless as a traditional gateway checkout.

For customers who are already comfortable with bank transfers and e-wallets, this flow is extremely intuitive. The identity match requirement adds a step of verification on the backend but does not create extra work for the customer as long as their bank account name matches their checkout name. For wholesale and business to business transactions where bank transfers are already standard, the learning curve is minimal.

One thing to note is that the redirection to the banking app means the customer leaves the merchant site temporarily. This is different from a traditional gateway where the customer stays on the site or on a hosted payment page. For some customers, leaving the site may feel unfamiliar. But the automatic redirection and the real-time update upon return smooth out the experience considerably.

The Technical Core of NØFEE and PVGP

For readers interested in how NØFEE works under the hood, the company has published technical documentation explaining the Payment Verification Gateway Protocol. PVGP is described as a structured financial technology standard that defines automated rules for confirming fund clearance in real-time.

The protocol, a custom-engineered bridge to real-time bank advice of credit/debit data that bypasses traditional APIs and webhooks, connects directly with the merchants e-commerce environment. When a customer sends a transfer, the bank's credit/debit advice contains packet of information. PVGP captures that information and checks it against open orders. If the amount matches an order and the name on the account matches the name provided at checkout, the system updates the order status automatically.

The identity match requirement is enforced at this stage. The PVGP compares the account name from the bank credit/debit advice with the name the customer entered during checkout. If they do not match exactly, the payment is not automatically matched to the order. This prevents fraudulent transactions and ensures that payments come from the intended party.

The system uses Server Sent Events, or SSE, to push real-time updates to the browser. SSE is a standard web technology that allows a server to send data to a client over a single HTTP connection. When the PVGP detects a matching payment, it sends an event through the SSE connection. The browsers JavaScript receives the event and updates the payment status area without requiring a page reload. The customer sees the confirmation instantly.

The company positions PVGP as part of a global shift toward account to account or A2A transactions. As real-time payment systems like InstaPay become more common, the ability to verify transfers instantly creates opportunities for merchants to bypass traditional card networks and their associated fees.

For a technical team considering building a similar system, the key components would be access to real-time bank advice of credit/debit data, a matching engine to link payments to orders, an identity verification layer, a fraud detection layer, and an SSE implementation for real-time client updates. Each of these components comes with its own technical and legal challenges.

Regulatory Compliance and Oversight

Security Bank Collect operates within a well defined regulatory framework. The service is offered by a BSP supervised bank. Transactions are subject to withholding tax under BIR regulations. The terms and conditions explicitly reference compliance with the Anti Money Laundering Act, BSP rules, and Bankers Association of the Philippines guidelines. Merchants must also comply with PCI DSS and the authentication protocols of Visa, Mastercard, UnionPay, and other card networks.

This regulatory structure provides assurance to merchants and customers that the service meets established standards. If something goes wrong, there are clear channels for dispute resolution and regulatory recourse. The downside is that compliance comes with costs, which are passed on through transaction fees.

NØFEE Direct Settlement operates as a proprietary system within a single corporate group. The company is not a bank and does not claim to be regulated as a payment gateway. The PVGP is a proprietary protocol rather than a regulated financial service. The system relies on existing bank transfer infrastructure rather than replacing it.

For customers of Wholesale Dito Store and Low Price Dito, this is a workable arrangement. They are transacting with a known merchant using standard bank transfers with an added identity verification layer. For a third party merchant considering adopting a similar model, the regulatory picture would be more complex. Accepting direct bank transfers from customers at scale may trigger obligations under anti money laundering rules and data privacy regulations. Any business planning to build a direct settlement system should consult with legal counsel familiar with Philippine financial regulations.

Who Each Service Serves Best

Security Bank Collect is designed for a broad range of businesses. Retail stores selling to individual consumers will appreciate the wide variety of payment options. Service providers who invoice clients can use LinkCollect to send payment links through email or messaging apps. E-commerce stores of all sizes can integrate WebCollect for a standard checkout experience.

The bank backing provides credibility that matters for merchants selling to new or one time customers. A shopper who has never bought from a particular store before may feel more comfortable entering their card information through a bank branded gateway. The security of a recognized financial institution can be a competitive advantage for building trust.

NØFEE Direct Settlement is designed for a narrower use case. It works best for repeat customers who already trust the merchant. Wholesale buyers making large recurring purchases will appreciate the zero fees and fast settlement. Businesses that have already established a relationship with their customers can use direct settlement without worrying about payment friction.

The zero fee model is most valuable for high volume, low margin transactions. If a business is selling products where every percentage point of margin matters, eliminating the 2 to 4 percent gateway fee can make the difference between profit and loss. For luxury goods or high margin services, the fee may be less critical.

The identity match requirement makes NØFEE particularly suitable for business to business transactions where both parties are registered entities with verifiable names. It is less suitable for anonymous or casual purchases where a buyer might use a friend or family members bank account.

Practical Limitations and Availability

This is perhaps the most important practical distinction between the two services. Security Bank Collect is available to any qualified business that opens a Security Bank BusinessPlus account. The service is ready to use today. A merchant can sign up, complete the onboarding process, and start accepting payments through LinkCollect within days. WebCollect takes longer due to integration work, but the path is clear and documented.

NØFEE Direct Settlement is not currently available for other merchants to use on their own stores. The company states that a commercial version is in development with no official release date. An interest list is available for merchants who want early access. But for now, NØFEE is a proprietary solution that only works on the Clickerwayne owned websites.

This limitation matters for any business owner reading this article hoping to implement a zero fee direct settlement system on their own site. The technology exists and appears to function well for the merchant that built it. But it is not a product you can purchase or subscribe to today. You could attempt to build a similar system yourself, but that would require significant technical development work, legal reviews, and the mess of setting up real-time event streaming and bank integrations without having an API or webhook to help you out.

Real World Trade Offs

No payment solution is perfect for every situation. The choice between a traditional gateway and a direct settlement system involves trade offs that each business must evaluate for itself.

Traditional gateways like Security Bank Collect offer convenience and reach at a cost. Customers can pay with the method they already have in their wallet or phone. The merchant does not need to explain a new process or guide customers through manual steps. Dispute resolution and chargeback protection are built in. But the fees add up, especially for high volume or high value transactions. As many merchants have experienced, settlement delays can cause real operational problems.

Direct settlement systems like NØFEE offer cost savings and speed at the cost of convenience and familiarity. Customers must actively send a bank transfer rather than simply entering card details. The merchant needs to handle disputes directly. There is no chargeback mechanism through a gateway. The identity match requirement adds security but also means that customers cannot pay from an account that is not in their own name. But the savings can be substantial, and for customers who already use bank transfers regularly, the process is natural.

A hybrid approach may work for many businesses. Accept traditional gateways for new or one time customers who value convenience and buyer protection. Offer a direct settlement option with lower prices for repeat customers who are willing to use bank transfers and have verified identities. This lets the business capture the best of both worlds.

What the Fine Print Reveals

Reading the Security Bank Collect terms and conditions provides useful context about how a regulated gateway operates. The merchant discount rate is clearly stated. Settlement is described as T+2, meaning two banking days from the date of receipt of payments, subject to PesoNet cut off times. The bank and its partner Magpie are not liable for disputes between merchant and buyer. Chargebacks incur a 1000 peso fee per occurrence.

The terms also reveal exclusivity requirements. The merchants accounts for the service must be maintained with Security Bank Corporation. Magpie cannot offer the service to other parties in the same business as Security Bank. Merchants must attend training and orientation on fraud prevention and chargeback handling.

These provisions are standard for bank gateway agreements. They protect the banks interests and ensure merchants understand their responsibilities. But they also mean the merchant is locked into a relationship with a specific bank and a specific payment facilitator.

NØFEE operates under different constraints because it is not a gateway available to third parties. The terms for its use are governed by the purchase terms of Wholesale Dito Store and Low Price Dito. The customer agrees to pay via direct bank transfer with the identity match requirement. The merchant agrees to deliver the goods. Disputes are handled directly between the two parties. This simpler arrangement works because the merchant and customer have a direct relationship.

Final Thoughts for Business Owners

Disclosure: One of the members of the Clickerwayne Group of Companies is a current customer of Security Bank and has an active business relationship with them. This article is based on publicly available information and the company's own experience.

If you are a business owner in the Philippines evaluating payment options, start by looking at your customer base and your margin structure.

For businesses selling to the general public, especially those with many first time customers, a traditional gateway like Security Bank Collect provides the payment variety and trust signals that convert browsers into buyers. The fees are a cost of doing business, but they support a smooth checkout experience that customers expect. Just be aware of the settlement timing and factor that into your cash flow planning.

For businesses selling to repeat wholesale or business customers, direct settlement models become more attractive. When both parties know each other and the transaction amounts are large, the savings from avoiding gateway fees can be significant. The customers are already used to bank transfers for business payments. The identity match requirement adds a layer of verification that is already standard in many B2B relationships.

The ideal scenario may be to offer both. Use a gateway for public facing sales and direct settlement for established wholesale accounts. This gives you the best of both approaches and lets your customers choose the method that works for them.

As for NØFEE Direct Settlement specifically, it is an interesting case study in vertical integration. A merchant that was frustrated with gateway fees and settlement delays built its own solution. That solution started as an internal tool for monitoring bank accounts. After identifying the limitations of traditional payment gateways, the company enhanced the system and introduced it to the public. The current version includes identity matching, one click copy and paste, automatic redirection to banking apps, and real-time SSE updates. It works well for that merchant. Whether a commercial version becomes available to other merchants remains to be seen. For now, it is a proof of concept that demonstrates what is possible when a business takes payment processing in-house.

Security Bank Collect is available today. It is reliable, regulated, and backed by a major bank. The fees are published and predictable. For most businesses needing to accept online payments immediately, that is the practical choice. But if you have the technical resources and the customer base to support a direct settlement model NØFEE is the best choice, the potential savings and speed advantages are worth exploring.

Sources and References

• Bangko Sentral ng Pilipinas. (2024). BSP Circulars and Initiatives on Digital Payments.
• Security Bank Corporation. Security Bank Collect Terms and Conditions.
• National Privacy Commission. (2012). Data Privacy Act of 2012 (Republic Act No. 10173).
• Bureau of Internal Revenue. (2023). Revenue Regulation No. 16-2023: Withholding Tax on Gross Remittances to Payment Acquirers.
• PCI Security Standards Council. (2024). Payment Card Industry Data Security Standard (PCI DSS) v4.0.
• Clickerwayne. (2025). Corporate Profile
• Clickerwayne. (2026). NØFEE Direct Settlement Technical Explainer.
• WholesaleDito.store. (2026). Pay With NØFEE Direct Settlement Guide.
• WholesaleDito.store. (2025). NOFEE: Zero Merchant Cost Payment Gateway Protocol (The Sniffer Insights)