What type of expense is transaction fee?

The selection of a service provider should take into account not only the per-transaction fee but also other factors such as security, reliability, and customer support. A lower fee may not necessarily translate into a better overall experience.

The amount of the per-transaction fee can differ significantly depending on the service provider chosen by the business. Some providers may offer lower rates to attract customers, while others might charge higher fees due to additional services or security measures.

Typically, the per-transaction fee falls within a range of 0.5% to 5% of the total transaction amount. This percentage is applied to the transaction value, serving as a commission for the service provider.

Alongside the percentage-based fee, some service providers also impose fixed fees per transaction. These fixed fees can add up, especially for businesses processing a high volume of transactions.

The per-transaction fee is a financial cost incurred by businesses when a customer's payment is processed electronically through a service provider. This fee is a standard practice in the digital transaction space.