💸 Business expense 🪙 Network fee

transaction cost

3.9

Money you pay to process a transfer on a digital money network, often higher when the network is busy

noun
/trænˈzækʃən kɔst/

Texting

: costo de transacción

To put it differently, efficiency does not depend on the initial allocation of property rights in a world without transaction costs (Coase 1960).

Examples

Investors should factor in transaction costs when evaluating their net gains from trading activities.
There are transaction costs in the form of fees.

Blog text (23)
So it's a weird sense in which on the one hand, I've said to you that these, this technology can lower the transaction cost of contracts.
With the world's largest online store (iTunes, App Store, Apple Store), Apple may even be in a position to achieve lower per-transaction costs than Amazon.

Blog text (11)
The transaction costs for processing Bitcoin purchases can vary based on network congestion and complexity.
When using a digital wallet, it's important to understand the transaction costs involved for each transfer.

How Costly

transaction cost

Texting

3.9

small fee

9 1.0

Surface Forms

transaction cost singular

transaction costs plural

Morphology

transaction + cost

The phrase is a straightforward noun + noun compositional construction: 'cost' of a 'transaction' directly yields the idea of a fee associated with carrying out a transaction. Although the full entry mentions a specific domain (digital networks/blockchains) and variable fees, the basic meaning is transparently derivable by a B1 learner who knows the constituent words and cross-linguistically common compounding patterns.

Etymology

Transaction cost for digital networks is like the stamp or fee you pay at a busy post office to get a letter handled quickly. When many people send items, the fee can go up, and in the same way the 'transaction cost' is the 'fee to process a digital transaction'.