transaction-fee

Vocabulary Word

Definition

'Transaction fee' is an extra amount you pay when you buy or sell something online. It's often paid to the platform or website you're using. You can think of it as a 'handling cost' for the online purchase or sale.

Examples in Different Contexts

In e-commerce, a transaction fee is a charge that merchants pay to process payments through their online platforms. An e-commerce manager might say, 'We're working to reduce transaction fees to make our products more affordable for customers.'

Practice Scenarios

Accounting

Scenario:

The latest financial report contains some discrepancies. A more diligent analysis of our transaction records is needed.

Response:

I agree. Proper accounting of transaction fees is paramount to maintain accurate financial reports.

Tech

Scenario:

The app’s updated version seems to have slower than normal operations. Perhaps something in the new payment processing code?

Response:

Perhaps we can optimize the payment processing code to reduce transaction fees and increase app speed.