Glossary · Pricing & billing

What is a transaction fee?

A transaction fee is an amount deducted from each individual sale, as a percentage, a fixed sum or both. On a streaming service it can be charged by the payment provider, by an app store and, on some platforms, by the platform vendor itself.

Who charges transaction fees

  • Payment gateway: a percentage plus a fixed amount, charged on every card or wallet payment
  • App store: a commission of roughly 15% to 30% on payments made through store billing
  • Platform vendor: some take a percentage of rentals, purchases and tickets on top of their subscription price
  • Currency conversion and cross-border fees when the buyer's card is from another country

How transaction fees add up

Fees stack. A $5 rental sold on the web might lose around 3% plus a fixed 30 cents to the gateway, which is already 9% of the sale. If the platform vendor also takes 10%, almost a fifth of the price is gone before content and delivery costs.

The fixed part hurts small sales most. That is one reason short-form apps sell coins in packs: one larger payment carries one fixed fee and funds many small unlocks.

Reducing the cost

  • Choose a platform that does not take a cut of one-time sales
  • Sell on the web as well as in apps
  • Process payments locally in each major market to avoid cross-border fees
  • Bundle small purchases into packs or passes
  • Encourage annual plans: one transaction instead of twelve

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FAQ

Transaction fee, answered.

More definitions in the streaming glossary.

Planning a streaming service?
Is a transaction fee the same as a per-subscriber fee?

No. A transaction fee is taken from each sale as it happens. A per-subscriber fee is charged every month for each subscriber you have, whether or not a payment was made that month.

Can transaction fees be passed on to the viewer?

Card network rules and local law restrict surcharges in many places. Most services build the cost into the price instead.

Are refunds charged a transaction fee?

Often the original fee is not returned when a payment is refunded, and disputed payments carry an extra charge. Check your provider's terms.

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