What does 'charge per transaction' typically refer to?

The term 'charge per transaction' specifically refers to a fee that is applied for each authorized transaction conducted. This charge is commonly encountered in various payment processing contexts, such as credit card transactions, electronic fund transfers, and other payment methods. It is typically a straightforward fee that is assessed every time a transaction occurs, regardless of the amount of the transaction itself.

This concept is crucial for understanding cost structures in payment processing, as businesses often evaluate transaction fees when determining their overall cost of processing payments. By focusing on the number of transactions rather than the total dollar volume, this charge helps businesses manage their expenses effectively as they grow.

Other options do not accurately capture the essence of a 'charge per transaction.' For example, charging for items on a bill relates to billing practices rather than transaction-based fees, while a fixed amount for account maintenance refers to ongoing costs not tied to individual transactions. A commission on total sales involves a percentage of revenue generated rather than a fee for each transaction executed. Understanding this distinction is important for effectively analyzing payment processing costs and strategies.