Processing fees are charges that businesses or service providers apply to cover the costs of handling transactions. These fees can occur in various contexts, such as when making payments with credit cards, applying for loans, or using online services. They help companies manage expenses related to payment processing, administrative tasks, and other operational activities. Typically, processing fees are a small percentage of the total transaction amount or a fixed fee per transaction. Customers should be aware of these fees, as they can affect the overall cost of a purchase or service. Understanding processing fees can help consumers make informed financial decisions.