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credit cards faq/glossary
The most common questions asked about Credits Cards.
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Credit Card Glossary
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P
 
Per transaction fees
definition
What does per transaction fees mean?

A fee for each transaction is being charged especially when merchant accounts are being used. In other words any time a merchant processes a transaction from a purchaser, he will be charged a certain fee. Taking as an example the Pay Pal merchant account, the rates are determined following a strict schedule.

The sales volumes play a very important role in how these transaction fees are being calculated: for transactions within the US, a merchant using the merchant account set up with Pay Pal whose sales do not exceed $3,000 will be charged a percentage as high as almost 3% plus a fee of $0.30. Now, as the sales volume grows, so do the transaction fees get lower.

A merchant who hits the $100,000 in sales will have to pay only 2% + a fee of $0.30. Per transaction fees differ from one payment system to the other, nevertheless a merchant account is always subject to paying a fee for completed transactions.
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