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I agree with you; as the fees are associated with the individual transactions, they are deductible. If in a "hobby", the question of whether they should be netted or deducted separately is relevant.
So, it doesn't matter if the fees are deducted before deposit or if they are charged through a bank? Processing fees are processing fees.
Sorry, let me rephrase. In the case of a business, it almost always doesn't matter whether you report the gross income, and deduct the fees, or whether you report the net income.