Why do companies charge processing fees?

Companies charge processing fees to cover the administrative costs associated with processing a service or transaction. This can include things like verifying and processing documents, performing credit checks, and other administrative tasks. The fees are typically a fixed amount or a percentage of the transaction amount and are intended to help the company offset the costs of providing the service. In some cases, the processing fee may also serve as a way to discourage frivolous or unnecessary transactions, by adding an additional cost to the process.