A Transaction Charge is a fee levied by banks, payment gateways, or financial institutions for processing a financial transaction such as transfer, withdrawal, or payment.
Transaction Charges are applied when you perform activities like money transfers, ATM withdrawals, online payments, card swipes, or fund transfers (NEFT, RTGS, IMPS). These charges help cover the cost of processing, network usage, and maintaining banking infrastructure.
In many cases, basic transactions such as UPI payments or limited ATM withdrawals are free, but charges may apply beyond certain limits or for premium services. Payment gateways and wallets may also charge merchants a small percentage of each transaction.
Types of transaction charges include:
Understanding transaction charges helps users manage banking costs and choose cost-effective payment methods.
"If you withdraw cash from an ATM more times than the free limit allowed by your bank, an additional fee may be charged for each extra transaction."