Transaction fees refer to the charges imposed by financial institutions or service providers for processing a transaction. These fees are typically applied when transferring funds, making purchases, or conducting any financial activity. Transaction fees can vary depending on the type of transaction, the amount involved, and the service provider. They are designed to cover the costs associated with processing and securing transactions, maintaining infrastructure, and providing customer support. Understanding transaction fees is important for individuals and businesses to effectively manage their finances and make informed decisions when choosing financial services.