Glossary / Transaction fee

Transaction fee

A fee charged per transaction by the gateway, processor or acquirer.

A transaction fee is a per-transaction charge applied by the gateway, processor or acquirer, usually in addition to percentage-based interchange and scheme fees. Some providers bundle their margin into the percentage rate; others split it out as a flat per-transaction amount. On low-value, high-frequency travel payments the per-transaction component can be a meaningful share of total cost.

What it means for travel businesses.

// Travel context

Travel businesses with high volumes of low-value bookings — ancillaries, day tours, small balances — are particularly sensitive to per-transaction fees. The effective rate on a £50 ancillary looks very different to the effective rate on a £5,000 booking.

For a tour operator selling £40 day-trip ancillaries alongside £4,000 itineraries, the per-transaction fee can flip the economics on the small end while being invisible on the large end. Across an ancillary catalogue with millions of transactions a year, a per-transaction fee a few pence wrong is real money — and most travel businesses never break it out by product.

The travel businesses that watch transaction fees at product level price ancillaries deliberately, choose acquirers that suit the small-ticket mix, and negotiate per-transaction components separately from percentage rate. The businesses that treat fees as a single line item subsidise their small-ticket products with margin from their large-ticket ones.

How felloh handles it.

// felloh

felloh surfaces transaction fees at the booking level so travel teams can see how the per-transaction component shapes effective cost by product, brand and channel.

The Merchant Acquirer view in the dashboard breaks per-transaction fees out from percentage rates, exposing the full cost stack against the booking. Where ancillaries dominate the volume mix, the per-transaction impact is visible at product level so pricing decisions can absorb the real cost.

For travel businesses selling ancillaries alongside large bookings, the per-transaction component stops being invisible. Ancillary pricing reflects the true cost of acceptance, and acquirer negotiation can separate the per-transaction component from the percentage rate.

See how this works around your bookings.

Bring one payment, reporting or cash-position problem. We will show how felloh connects the booking-level money trail behind it.

Book a walkthrough