Transaction fee
Transaction fee is a charge taken for each payment or other individual operation, usually by a bank, card acquirer, payment gateway, or online marketplace. It can be a flat amount, a percentage of the sale, or a mix, and it may be deducted from your payout or billed separately. Typical examples are card processing (merchant service charge), bank transfer charges, payout fees, foreign exchange fees and chargeback fees.
Example: booking a card fee
In accounting you can show sales at the gross amount and the fee as a cost, which keeps turnover clear. For VAT, the treatment depends on the service: many pure payment services are exempt or outside the scope, while platform or gateway service fees can be subject to VAT. Always rely on the invoice or statement from the provider for the VAT status and place of supply.
What to check for each transaction fee:
- Who charges it (bank, acquirer, gateway, marketplace) and what service it covers.
- How it is calculated (flat, percentage, minimums, tiering).
- How it is settled (deducted from payouts or invoiced and paid separately).
- VAT position on the document and whether reverse charge applies.
- Currency used and any foreign exchange spread or cross‑border charges.
- How refunds and chargebacks are handled and whether fees are returned or extra fees apply.
