Can I write off merchant processing fees?

Merchant processing fees are considered ordinary and necessary expenses incurred in the operation of a business. These fees are typically charged by credit card companies or payment processors for handling transactions. They are deductible as part of the cost of goods sold or as a separate business expense on your tax return. However, they must be directly related to the business and properly documented. For example, if you run a retail store and pay fees to a credit card company for processing customer payments, these fees can be deducted.