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 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 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.
Related terms.
Gateway fee
A per-transaction or monthly fee charged by a payment gateway for connecting the merchant to processing.Read termGlossary termMerchant Discount Rate (MDR)
The total fee a merchant pays per card transaction, expressed as a percentage of value.Read termGlossary termInterchange fee
A fee paid by the acquirer to the issuer on each card transaction, set by the scheme.Read termGlossary termFee schedule
The published list of fees an acquirer or processor charges per transaction type and card product.Read termGlossary termPayment processor
A provider that moves payment data between the merchant, acquirer, scheme and issuer.Read termSee 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