Transaction fees are a percentage or flat fee charged by a course platform on each sale you make, on top of standard payment processing fees from Stripe or PayPal. These fees can significantly reduce your earnings over time.
How transaction fees differ from payment processing
Payment processing fees (typically 2.9% + $0.30 per transaction from Stripe) are unavoidable — they are the cost of accepting credit card payments. Transaction fees are an additional charge from the course platform itself. Some platforms charge 0% (like Ruzuku), while others charge 5-10% on lower-tier plans.
The real cost over time
At small volumes, transaction fees seem minor. But as your business grows, they compound. A 5% fee on $20,000 in annual sales costs $1,000. On $100,000, it costs $5,000. Over several years, you could pay tens of thousands of dollars in fees that go directly to the platform rather than supporting your business.
What to look for when comparing platforms
When evaluating course platforms, compare the total cost of ownership: monthly subscription fee plus transaction fees at your expected sales volume. A platform with a higher monthly fee but zero transaction fees often costs less overall than a platform with a low monthly fee and a 5-10% transaction fee, especially as your revenue grows.
Related Resources
Frequently Asked Questions
What is the difference between transaction fees and payment processing fees?
Transaction fees are charged by the course platform itself (e.g., 5% of each sale). Payment processing fees are charged by Stripe or PayPal for handling the actual payment (typically 2.9% + $0.30). Ruzuku charges zero transaction fees — you only pay the standard payment processor fees.
How much do transaction fees cost over time?
They add up quickly. A 5% transaction fee on $50,000 in annual course sales costs you $2,500. On $100,000, it costs $5,000. Choosing a platform with zero transaction fees can save thousands of dollars per year as your course business grows.