Caramel
How money moves on Caramel — from checkout to merchant disbursement — and exactly what fees apply at every step. No surprises.
How It Works
The customer completes payment via MTN MoMo, Airtel Money, card, or Caramel Wallet. Funds are captured immediately.
Payment goes into Caramel Escrow — a secure holding account. The merchant cannot access the funds yet. This protects the customer.
The merchant delivers the product, provides the service, or confirms the guest has checked in. Caramel monitors for disputes during this window.
The customer confirms they have received what was ordered. If no dispute is raised within 24 hours of delivery, escrow releases automatically.
The merchant's net proceeds (total paid minus Caramel commission) are disbursed to their nominated MTN MoMo, Airtel Money, or bank account within 1–3 business days.
Your payment is held safely until you confirm you've received what you ordered.
Payment Methods
MTN Mobile Money
Instant (USSD prompt)
The most common payment method in Uganda. A USSD prompt is sent to your MTN number — approve within 20 seconds to confirm payment.
Airtel Money
Instant (USSD prompt)
Works identically to MTN MoMo — a USSD prompt is sent to your Airtel number for approval.
Visa / Mastercard
Instant
Processed securely via Flutterwave. Caramel never stores your card details. International cards accepted.
Caramel Wallet
Instant
One-click checkout using your Caramel Wallet balance. Authenticated via your 5-digit PIN. Load your wallet via Mobile Money or card.
Letshego MicroLoan
Instant (eligibility assessed at checkout)
Buy now, repay in 3–30 days. Powered by Letshego Finance. Available to verified Caramel users only. Interest rates and fees set by Letshego and disclosed at checkout.
Service Charges
A small service charge applies to most transactions. The exact amount is always shown at checkout before you confirm — you will never be surprised.
| Scenario | Service Charge |
|---|---|
| Registered user, Mobile Money | 2% of order value (max UGX 5,000) |
| Registered user, Card payment | 2.5% of order value (max UGX 7,500) |
| Registered user, Caramel Wallet | No service charge |
| Guest checkout, any method | 3% of order value (max UGX 10,000) |
| MicroLoan (Letshego) | Interest set by Letshego at checkout |
Caramel Wallet payments are always fee-free for registered users. Load your wallet via Mobile Money or card and enjoy the fastest, cheapest checkout on the platform.
Refunds
Mobile Money
1–2 hours
Refunded to the same MTN or Airtel number used to pay.
Card
3–5 business days
Refunded to the card used at checkout via Flutterwave.
Caramel Wallet
Instant
Credited back to your Caramel Wallet balance immediately.
Refund eligibility is determined by the merchant's stated cancellation policy. If a merchant fails to respond to a legitimate refund request within 48 hours, Caramel will step in and process the refund on their behalf. Contact support@caramel.ug if you need assistance.
Still have questions?
Our team is available Monday–Friday, 8:30 am–6:00 pm. Customer support: support@caramel.ug
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