Transaction costs generally refer to the fees incurred when rights of disposal are transferred. This occurs in the context of purchase, sale or lease. One assumes that with the execution of each transaction appropriate costs result. A distinction is made between costs that are incurred in the run-up to a transaction (e.g., the preparation of a contract) and those that are levied as a result of a transaction (e.g., an agent’s commission in the event of successful real estate brokerage).
Transaction costs for payment providers
When a payment provider carries out a transaction, it charges a fee per transaction. The costs incurred are therefore due per transaction. As a rule, the amount of the costs per transaction is between 0.09€ and 1.00€. In the case of pure payment service providers, only the transaction fee is generally due per booking. If the payment provider also arranges credit card acceptance contracts in addition to the pure payment service, a discount is usually charged for this. Some providers differentiate between transaction costs and disagio on the invoice, others combine both amounts into one sum.
Transaction costs at banks
As a private individual, you most often come into contact with transaction fees at your bank, even though you often do not pay them directly as a customer. Although banks are prohibited from charging fees for legally required services, additional services are often charged to the customer. It is a legal requirement to be able to make free deposits and withdrawals at one’s bank. In addition, however, a bank may assess a booking item fee resulting from the provision of the ATM. A bank must offer at least five booking transactions per month free of charge; additional transactions may be subject to a transaction fee. If you withdraw money from a bank other than your own, the transaction fees are added directly. Some fees are nevertheless charged by some banks, although they are not allowed. For example, it is not permitted to charge transaction costs for the reversal of a direct debit if it could not be honored due to insufficient funds. In some places, customers do not notice the transaction fees that are nevertheless incurred. If you pay with your credit card, the merchant pays a transaction fee for this, which may not be passed on to the customer.
Transaction costs in securities trading
The area where transaction fees are always incurred by the customer is securities trading. Here, a fee is charged for each purchase and sale, usually based on the value of the security being traded. The level of transaction fees for trading in securities can vary from bank to bank.
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