The True Cost of Payment Gateways
Every time you buy something online, there is a cost you do not see. It is not added to your total at checkout. But it is there. Merchants call it MDR, which stands for Merchant Discount Rate. It is the fee that payment gateways like Security Bank Collect and Magpie charge merchants for every transaction. And someone has to pay for it.
For stores like WholesaleDito.store and LowPriceDito.com, MDR fees are a real problem. We built our business on giving you the lowest prices possible. But when a payment gateway takes a percentage of every sale, something has to give. Either we raise our prices, or we lose money on every order. Neither option is acceptable.
That is why we developed N∅FEE Direct Settlement. It is not a temporary workaround. It is a completely different way of handling checkout. One that removes payment gateways entirely. One that lets us keep our prices low without cutting corners.
What Is N∅FEE Direct Settlement?
N∅FEE Direct Settlement is an in-house proprietary checkout payment system we developed from the ground up. It replaces third party payment gateways. The name says it all. No MDR fees. Direct settlement between you and us. You won't find this exact system anywhere else.
We're not just a Wholesaler, we're a Tech company.
Here is how it works. Instead of going through a payment gateway that takes a cut, you pay us directly. You send payment to our corporate bank account using your bank's mobile app or your e-wallet. Our system, which we call the Payment Verification Gateway Protocol or PVGP, automatically matches your payment to your order. No payment gateway. No MDR. No waiting. No giving away your bank account details to a third party.
Think of it as removing the middleman entirely. The payment gateway is gone. The fees are gone. Just you, us, and our proprietary system handling the verification and checkout process automatically.
Why Should You Use N∅FEE Direct Settlement?
Three reasons. First, you save money. We do not have to raise our prices to cover MDR fees charged by payment gateways. The savings stay in our pricing, and you get better deals.
Second, your privacy is protected. When you use a payment gateway like Security Bank Collect or any other gateways, your information passes through their servers. With N∅FEE Direct Settlement, you cut them out completely. You pay from your own banking app. We do not ask for your account information. We do not save it in our system. The only thing we ever ask for is the last four digits of the account you used, just to verify that the payment came from you.
Third, it is fast. Bank transfers in the Philippines using InstaPay or PESONet clear quickly. Once you send the payment, our PVGP system picks it up and confirms your order. No waiting for a payment gateway to settle funds. No wondering if the payment went through.
Illustration: See the Difference for Yourself
Below are actual screenshots from our checkout page on PWA Standalone version 4. Look closely at the numbers. The difference is not small. Click any image to see a larger view.
Your Checkout Options
This is what you see at checkout. You have several choices. One saves you money. One costs you extra.
- N∅FEE Direct Settlement - Zero gateway fees
- Payment Gateway - 6.4% service fee
- 30-Days Term - For accredited partners
- Cash or Check on Delivery - Pay when you receive
Regular Payment Gateway
When you pick Payment Gateway, a 6.4% fee gets added. Your total goes up. The gateway takes its cut.
What happens:
- Your order subtotal
- Plus VAT (12%)
- Plus logistics fee
- Plus 6.4% payment fee
- You pay more. The gateway profits.
That payment fee does not go to us. It goes to the gateway.
N∅FEE Direct Settlement
With N∅FEE, there is no payment fee. You also get a logistics discount. Your total stays lower.
What happens:
- Your order subtotal
- Plus VAT (12%)
- Plus logistics fee
- Minus logistics discount (54%)
- Payment fee: ₱0.00
- You pay less. You keep the savings.
No middleman. No extra fees. No waiting.
The bottom line:
The same order. The same product. The same shipping. Your payment choice changes your total.
- With a regular payment gateway: You pay up to 6.4% fee
- With N∅FEE Direct Settlement: You pay zero fees and get a logistics discount
Step by Step: How to Pay With N∅FEE Direct Settlement
The process is straightforward. Follow these steps and you will be done in a few minutes.
Step 1: Shop as Usual
Browse our products at WholesaleDito.store or LowPriceDito.com. Add items to your cart. When you are ready to check out, proceed to the checkout page.
Step 2: Choose N∅FEE Direct Settlement at Checkout
Look for the payment option labeled N∅FEE Direct Settlement. Select it and click the Place Order button. You will be redirected to the payment page, and it will show you our corporate bank account details on the screen. This includes the account name, account number, and the exact amount you need to pay.
Step 3: Open Your Banking App or E-Wallet
Open the banking app on your phone. This could be HSBC, Security Bank, BPI, BDO, Metrobank, UnionBank, GCash, Maya, or any other bank that supports online transfers. Do not close the payment page. You will need to come back to confirm your payment.
Step 4: Send the Payment
Enter our bank details exactly as shown. Type in the amount displayed on your order. Double check everything before you hit send. A wrong digit could delay your order.
Once you confirm the transfer, your bank will show you a reference number. Keep this somewhere safe, but you do not need to send it to us. Our PVGP system will find your payment automatically.
Step 5: Go Back to Our Site and Confirm
Return to our website. Click the button that says "I have made the payment." Our PVGP system will verify your payment. Once verified, you will be asked to enter the last four digits of the account you used to make the payment. This is the only account information we ever request. We do not ask for your full account number. We do not save it. We just need these four digits to match the payment to your order. Our system will then look for your payment and link it to your order.
Step 6: Payment Confirmation
Once your payment is confirmed, you will see your order status change from "Pending" to "Paid." That means our PVGP system found your payment and verified it. No payment gateway involved. No MDR deducted.
Common Questions About N∅FEE Direct Settlement
- Is there a minimum order amount?
No. You can use N∅FEE Direct Settlement for any order size. Small or large, the process is the same. - How long does it take for my payment to be confirmed?
Most transfers clear within a few seconds. InstaPay transfers are usually instant. PESONet transfers may take a bit longer, but you will still get confirmation the same day. - What if I send the wrong amount?
Our PVGP system matches payments based on the exact amount. If you send the wrong amount, the system will not automatically match it. Contact our support team and we will help you sort it out. - Do I need to send a screenshot of my transfer?
No. You do not need to send anything. Our PVGP system finds your payment automatically. The last four digits of your account help us verify the match, but you do not need to send us any screenshots or receipts. - Is N∅FEE Direct Settlement safe?
Yes. Your banking details never leave your own device. You don't have to provide us your full account information. And unlike using payment gateways, your information does not pass through a third party server. - What does MDR stand for?
MDR means Merchant Discount Rate. It is the fee that payment gateways like Security Bank Collect and Magpie charge sellers for every transaction. With N∅FEE Direct Settlement, that fee is gone because the payment gateway is gone. - Why do you need the last four digits of my account?
We use the last four digits to help our PVGP system match your payment to your order. When multiple payments come in at the same time for the same amount, the last four digits help us confirm which payment belongs to which customer. We do not store this information. We do not share it. We use it once for verification, and that is it. - How is this different from a regular bank transfer?
A regular bank transfer still requires manual verification. Someone has to check if you paid. With N∅FEE Direct Settlement, our PVGP system does this automatically. No human involvement. No delays. No payment gateway taking a cut. - I run my own online store. Can I use NØFEE Direct Settlement instead of my current payment gateway?
Not yet, but soon. We are working on a commercial version that other merchants can use. There is no official release date yet because we want to get it right first. But if you are interested, let us know. We are keeping a list of merchants who want early access, and we will reach out as soon as we are ready. - How much will it cost? Will it be expensive?
We have not finalized pricing yet, but here is our commitment. It will cost significantly less than what you currently pay in MDR fees. Most merchants lose two to six percent of every sale to payment gateways. We want to offer a flat fee or a simple monthly subscription. No percentage based fees. No surprises. If you join our interest list, we will send you pricing details as soon as they are announced. - Is NØFEE safe for my customers? Do I need to worry about PCI compliance?
This is one of the best parts. NØFEE never handles your customer's banking details. Your customers pay directly from their own banking app. You never see their full account number. You never store their information on your servers. That means fewer PCI compliance headaches for you and better security for your customers. No middleman. No third party servers storing sensitive data. - Is NØFEE Direct Settlement built with fraud prevention?
Yes, absolutely. Fraud prevention was the first consideration we had to address. We have set up parameters and protocols to flag suspicious payments in REAL-TIME. However, we are not able to discuss the specifics in public. The details are proprietary and we keep them confidential for security purposes. What we can tell you is that we take fraud seriously, and we designed the system to protect both you and us.