diff --git a/Cargo.lock b/Cargo.lock
index 34309759af206..84ef183d9d649 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1927,6 +1927,7 @@ dependencies = [
  "srml-balances 0.1.0",
  "srml-consensus 0.1.0",
  "srml-contract 0.1.0",
+ "srml-fees 0.1.0",
  "srml-grandpa 0.1.0",
  "srml-indices 0.1.0",
  "srml-session 0.1.0",
@@ -1981,6 +1982,7 @@ dependencies = [
  "srml-council 0.1.0",
  "srml-democracy 0.1.0",
  "srml-executive 0.1.0",
+ "srml-fees 0.1.0",
  "srml-grandpa 0.1.0",
  "srml-indices 0.1.0",
  "srml-session 0.1.0",
@@ -2045,6 +2047,7 @@ dependencies = [
  "srml-balances 0.1.0",
  "srml-consensus 0.1.0",
  "srml-executive 0.1.0",
+ "srml-fees 0.1.0",
  "srml-indices 0.1.0",
  "srml-sudo 0.1.0",
  "srml-support 0.1.0",
@@ -3177,6 +3180,7 @@ dependencies = [
  "sr-std 0.1.0",
  "srml-balances 0.1.0",
  "srml-consensus 0.1.0",
+ "srml-fees 0.1.0",
  "srml-support 0.1.0",
  "srml-system 0.1.0",
  "srml-timestamp 0.1.0",
@@ -3249,12 +3253,29 @@ dependencies = [
  "sr-primitives 0.1.0",
  "sr-std 0.1.0",
  "srml-balances 0.1.0",
+ "srml-fees 0.1.0",
  "srml-indices 0.1.0",
  "srml-support 0.1.0",
  "srml-system 0.1.0",
  "substrate-primitives 0.1.0",
 ]
 
+[[package]]
+name = "srml-fees"
+version = "0.1.0"
+dependencies = [
+ "hex-literal 0.1.2 (registry+https://github.com/rust-lang/crates.io-index)",
+ "parity-codec 3.0.0 (registry+https://github.com/rust-lang/crates.io-index)",
+ "parity-codec-derive 3.0.0 (registry+https://github.com/rust-lang/crates.io-index)",
+ "serde 1.0.87 (registry+https://github.com/rust-lang/crates.io-index)",
+ "sr-io 0.1.0",
+ "sr-primitives 0.1.0",
+ "sr-std 0.1.0",
+ "srml-support 0.1.0",
+ "srml-system 0.1.0",
+ "substrate-primitives 0.1.0",
+]
+
 [[package]]
 name = "srml-grandpa"
 version = "0.1.0"
diff --git a/Cargo.toml b/Cargo.toml
index 3d27fa72d54e0..98e3a439d918d 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -65,6 +65,7 @@ members = [
 	"srml/democracy",
 	"srml/example",
 	"srml/executive",
+	"srml/fees",
 	"srml/grandpa",
 	"srml/indices",
 	"srml/metadata",
diff --git a/core/sr-primitives/src/traits.rs b/core/sr-primitives/src/traits.rs
index 2e956c855b455..5e12d571ae201 100644
--- a/core/sr-primitives/src/traits.rs
+++ b/core/sr-primitives/src/traits.rs
@@ -126,15 +126,57 @@ pub trait BlockNumberToHash {
 	}
 }
 
-/// Simple payment making trait, operating on a single generic `AccountId` type.
-pub trait MakePayment<AccountId> {
-	/// Make some sort of payment concerning `who` for an extrinsic (transaction) of encoded length
-	/// `encoded_len` bytes. Return true iff the payment was successful.
-	fn make_payment(who: &AccountId, encoded_len: usize) -> Result<(), &'static str>;
+/// Charge bytes fee trait
+pub trait ChargeBytesFee<AccountId> {
+	/// Charge fees from `transactor` for an extrinsic (transaction) of encoded length
+	/// `encoded_len` bytes. Return Ok iff the payment was successful.
+	fn charge_base_bytes_fee(transactor: &AccountId, encoded_len: usize) -> Result<(), &'static str>;
 }
 
-impl<T> MakePayment<T> for () {
-	fn make_payment(_: &T, _: usize) -> Result<(), &'static str> { Ok(()) }
+/// Charge fee trait
+pub trait ChargeFee<AccountId>: ChargeBytesFee<AccountId> {
+	/// The type of fee amount.
+	type Amount;
+
+	/// Charge `amount` of fees from `transactor`. Return Ok iff the payment was successful.
+	fn charge_fee(transactor: &AccountId, amount: Self::Amount) -> Result<(), &'static str>;
+
+	/// Refund `amount` of previous charged fees from `transactor`. Return Ok iff the refund was successful.
+	fn refund_fee(transactor: &AccountId, amount: Self::Amount) -> Result<(), &'static str>;
+}
+
+/// Transfer fungible asset trait
+pub trait TransferAsset<AccountId> {
+	/// The type of asset amount.
+	type Amount;
+
+	/// Transfer asset from `from` account to `to` account with `amount` of asset.
+	fn transfer(from: &AccountId, to: &AccountId, amount: Self::Amount) -> Result<(), &'static str>;
+
+	/// Remove asset from `who` account by deducing `amount` in the account balances.
+	fn remove_from(who: &AccountId, amount: Self::Amount) -> Result<(), &'static str>;
+
+	/// Add asset to `who` account by increasing `amount` in the account balances.
+	fn add_to(who: &AccountId, amount: Self::Amount) -> Result<(), &'static str>;
+}
+
+impl<T> ChargeBytesFee<T> for () {
+	fn charge_base_bytes_fee(_: &T, _: usize) -> Result<(), &'static str> { Ok(()) }
+}
+
+impl<T> ChargeFee<T> for () {
+	type Amount = ();
+
+	fn charge_fee(_: &T, _: Self::Amount) -> Result<(), &'static str> { Ok(()) }
+	fn refund_fee(_: &T, _: Self::Amount) -> Result<(), &'static str> { Ok(()) }
+}
+
+impl<T> TransferAsset<T> for () {
+	type Amount = ();
+
+	fn transfer(_: &T, _: &T, _: Self::Amount) -> Result<(), &'static str> { Ok(()) }
+	fn remove_from(_: &T, _: Self::Amount) -> Result<(), &'static str> { Ok(()) }
+	fn add_to(_: &T, _: Self::Amount) -> Result<(), &'static str> { Ok(()) }
 }
 
 /// Extensible conversion trait. Generic over both source and destination types.
diff --git a/core/test-runtime/wasm/target/wasm32-unknown-unknown/release/substrate_test_runtime.compact.wasm b/core/test-runtime/wasm/target/wasm32-unknown-unknown/release/substrate_test_runtime.compact.wasm
index f7f569548e0db..9bf282dec8778 100644
Binary files a/core/test-runtime/wasm/target/wasm32-unknown-unknown/release/substrate_test_runtime.compact.wasm and b/core/test-runtime/wasm/target/wasm32-unknown-unknown/release/substrate_test_runtime.compact.wasm differ
diff --git a/node-template/runtime/Cargo.toml b/node-template/runtime/Cargo.toml
index 00ec0eb367148..99cb977b44e66 100644
--- a/node-template/runtime/Cargo.toml
+++ b/node-template/runtime/Cargo.toml
@@ -16,6 +16,7 @@ version = { package = "sr-version", path = "../../core/sr-version", default_feat
 support = { package = "srml-support", path = "../../srml/support", default_features = false }
 primitives = { package = "substrate-primitives", path = "../../core/primitives", default_features = false }
 balances = { package = "srml-balances", path = "../../srml/balances", default_features = false }
+fees = { package = "srml-fees", path = "../../srml/fees", default_features = false }
 consensus = { package = "srml-consensus", path = "../../srml/consensus", default_features = false }
 aura = { package = "srml-aura", path = "../../srml/aura", default_features = false }
 executive = { package = "srml-executive", path = "../../srml/executive", default_features = false }
@@ -38,6 +39,7 @@ std = [
 	"runtime-io/std",
 	"support/std",
 	"balances/std",
+	"fees/std",
 	"executive/std",
 	"aura/std",
 	"indices/std",
diff --git a/node-template/runtime/src/lib.rs b/node-template/runtime/src/lib.rs
index 079f11918f707..39a18593f1e00 100644
--- a/node-template/runtime/src/lib.rs
+++ b/node-template/runtime/src/lib.rs
@@ -164,6 +164,12 @@ impl balances::Trait for Runtime {
 	type Event = Event;
 }
 
+impl fees::Trait for Runtime {
+	type Amount = u128;
+	type TransferAsset = Balances;
+	type Event = Event;
+}
+
 impl sudo::Trait for Runtime {
 	/// The uniquitous event type.
 	type Event = Event;
@@ -188,6 +194,7 @@ construct_runtime!(
 		Indices: indices,
 		Balances: balances,
 		Sudo: sudo,
+		Fees: fees::{Module, Storage, Config<T>, Event<T>},
 		// Used for the module template in `./template.rs`
 		TemplateModule: template::{Module, Call, Storage, Event<T>},
 	}
@@ -208,7 +215,7 @@ pub type UncheckedExtrinsic = generic::UncheckedMortalCompactExtrinsic<Address,
 /// Extrinsic type that has already been checked.
 pub type CheckedExtrinsic = generic::CheckedExtrinsic<AccountId, Nonce, Call>;
 /// Executive: handles dispatch to the various modules.
-pub type Executive = executive::Executive<Runtime, Block, Context, Balances, AllModules>;
+pub type Executive = executive::Executive<Runtime, Block, Context, Fees, AllModules>;
 
 // Implement our runtime API endpoints. This is just a bunch of proxying.
 impl_runtime_apis! {
diff --git a/node-template/runtime/wasm/Cargo.lock b/node-template/runtime/wasm/Cargo.lock
index e383e5df678ef..905538fa8fbfd 100644
--- a/node-template/runtime/wasm/Cargo.lock
+++ b/node-template/runtime/wasm/Cargo.lock
@@ -655,6 +655,7 @@ dependencies = [
  "srml-balances 0.1.0",
  "srml-consensus 0.1.0",
  "srml-executive 0.1.0",
+ "srml-fees 0.1.0",
  "srml-indices 0.1.0",
  "srml-sudo 0.1.0",
  "srml-support 0.1.0",
@@ -1333,6 +1334,22 @@ dependencies = [
  "srml-system 0.1.0",
 ]
 
+[[package]]
+name = "srml-fees"
+version = "0.1.0"
+dependencies = [
+ "hex-literal 0.1.1 (registry+https://github.com/rust-lang/crates.io-index)",
+ "parity-codec 3.0.0 (registry+https://github.com/rust-lang/crates.io-index)",
+ "parity-codec-derive 3.0.0 (registry+https://github.com/rust-lang/crates.io-index)",
+ "serde 1.0.85 (registry+https://github.com/rust-lang/crates.io-index)",
+ "sr-io 0.1.0",
+ "sr-primitives 0.1.0",
+ "sr-std 0.1.0",
+ "srml-support 0.1.0",
+ "srml-system 0.1.0",
+ "substrate-primitives 0.1.0",
+]
+
 [[package]]
 name = "srml-indices"
 version = "0.1.0"
diff --git a/node-template/src/chain_spec.rs b/node-template/src/chain_spec.rs
index 6b1370b102d69..b9f61e45f546b 100644
--- a/node-template/src/chain_spec.rs
+++ b/node-template/src/chain_spec.rs
@@ -1,7 +1,7 @@
 use primitives::{Ed25519AuthorityId, ed25519};
 use node_template_runtime::{
 	AccountId, GenesisConfig, ConsensusConfig, TimestampConfig, BalancesConfig,
-	SudoConfig, IndicesConfig
+	SudoConfig, IndicesConfig, FeesConfig,
 };
 use substrate_service;
 
@@ -90,8 +90,6 @@ fn testnet_genesis(initial_authorities: Vec<Ed25519AuthorityId>, endowed_account
 			ids: endowed_accounts.clone(),
 		}),
 		balances: Some(BalancesConfig {
-			transaction_base_fee: 1,
-			transaction_byte_fee: 0,
 			existential_deposit: 500,
 			transfer_fee: 0,
 			creation_fee: 0,
@@ -101,5 +99,9 @@ fn testnet_genesis(initial_authorities: Vec<Ed25519AuthorityId>, endowed_account
 		sudo: Some(SudoConfig {
 			key: root_key,
 		}),
+		fees: Some(FeesConfig {
+			transaction_base_fee: 1,
+			transaction_byte_fee: 0,
+		})
 	}
 }
diff --git a/node/cli/src/chain_spec.rs b/node/cli/src/chain_spec.rs
index 878ffb2b10b14..cb693f2b1d2f2 100644
--- a/node/cli/src/chain_spec.rs
+++ b/node/cli/src/chain_spec.rs
@@ -20,7 +20,7 @@ use primitives::{Ed25519AuthorityId, ed25519};
 use node_primitives::AccountId;
 use node_runtime::{ConsensusConfig, CouncilSeatsConfig, CouncilVotingConfig, DemocracyConfig,
 	SessionConfig, StakingConfig, TimestampConfig, BalancesConfig, TreasuryConfig,
-	SudoConfig, ContractConfig, GrandpaConfig, IndicesConfig, Permill, Perbill};
+	SudoConfig, ContractConfig, GrandpaConfig, IndicesConfig, FeesConfig, Permill, Perbill};
 pub use node_runtime::GenesisConfig;
 use substrate_service;
 use hex_literal::{hex, hex_impl};
@@ -64,8 +64,6 @@ fn staging_testnet_config_genesis() -> GenesisConfig {
 		system: None,
 		balances: Some(BalancesConfig {
 			balances: endowed_accounts.iter().map(|&k| (k, 10_000_000 * DOLLARS)).collect(),
-			transaction_base_fee: 1 * CENTS,
-			transaction_byte_fee: 10 * MILLICENTS,
 			existential_deposit: 1 * DOLLARS,
 			transfer_fee: 1 * CENTS,
 			creation_fee: 1 * CENTS,
@@ -139,7 +137,11 @@ fn staging_testnet_config_genesis() -> GenesisConfig {
 		}),
 		grandpa: Some(GrandpaConfig {
 			authorities: initial_authorities.clone().into_iter().map(|k| (k, 1)).collect(),
-		})
+		}),
+		fees: Some(FeesConfig {
+			transaction_base_fee: 1 * CENTS,
+			transaction_byte_fee: 10 * MILLICENTS,
+		}),
 	}
 }
 
@@ -192,8 +194,6 @@ pub fn testnet_genesis(
 			ids: endowed_accounts.iter().map(|x| x.0.into()).collect(),
 		}),
 		balances: Some(BalancesConfig {
-			transaction_base_fee: 1,
-			transaction_byte_fee: 0,
 			existential_deposit: 500,
 			transfer_fee: 0,
 			creation_fee: 0,
@@ -267,7 +267,11 @@ pub fn testnet_genesis(
 		}),
 		grandpa: Some(GrandpaConfig {
 			authorities: initial_authorities.clone().into_iter().map(|k| (k, 1)).collect(),
-		})
+		}),
+		fees: Some(FeesConfig {
+			transaction_base_fee: 1,
+			transaction_byte_fee: 0,
+		}),
 	}
 }
 
diff --git a/node/executor/Cargo.toml b/node/executor/Cargo.toml
index ac99c3c5f05f8..501c8a7b54f56 100644
--- a/node/executor/Cargo.toml
+++ b/node/executor/Cargo.toml
@@ -31,6 +31,7 @@ treasury = { package = "srml-treasury", path = "../../srml/treasury" }
 contract = { package = "srml-contract", path = "../../srml/contract" }
 grandpa = { package = "srml-grandpa", path = "../../srml/grandpa" }
 indices = { package = "srml-indices", path = "../../srml/indices" }
+fees = { package = "srml-fees", path = "../../srml/fees" }
 wabt = "~0.7.4"
 
 [features]
diff --git a/node/executor/src/lib.rs b/node/executor/src/lib.rs
index 5810756c17f0b..2edd2b7966df9 100644
--- a/node/executor/src/lib.rs
+++ b/node/executor/src/lib.rs
@@ -46,7 +46,7 @@ mod tests {
 	use system::{EventRecord, Phase};
 	use node_runtime::{Header, Block, UncheckedExtrinsic, CheckedExtrinsic, Call, Runtime, Balances,
 		BuildStorage, GenesisConfig, BalancesConfig, SessionConfig, StakingConfig, System,
-		SystemConfig, GrandpaConfig, IndicesConfig, Event, Log};
+		SystemConfig, GrandpaConfig, IndicesConfig, FeesConfig, Event, Log};
 	use wabt;
 	use hex_literal::{hex, hex_impl};
 	use primitives::map;
@@ -112,13 +112,13 @@ mod tests {
 		let mut t = TestExternalities::<Blake2Hasher>::new_with_code(BLOATY_CODE, map![
 			twox_128(&<balances::FreeBalance<Runtime>>::key_for(alice())).to_vec() => vec![69u8, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0],
 			twox_128(<balances::TotalIssuance<Runtime>>::key()).to_vec() => vec![69u8, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0],
-			twox_128(<balances::TransactionBaseFee<Runtime>>::key()).to_vec() => vec![70u8; 16],
-			twox_128(<balances::TransactionByteFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<balances::ExistentialDeposit<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<balances::CreationFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<balances::TransferFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<indices::NextEnumSet<Runtime>>::key()).to_vec() => vec![0u8; 16],
-			twox_128(&<system::BlockHash<Runtime>>::key_for(0)).to_vec() => vec![0u8; 32]
+			twox_128(&<system::BlockHash<Runtime>>::key_for(0)).to_vec() => vec![0u8; 32],
+			twox_128(<fees::TransactionBaseFee<Runtime>>::key()).to_vec() => vec![70u8; 16],
+			twox_128(<fees::TransactionByteFee<Runtime>>::key()).to_vec() => vec![0u8; 16]
 		]);
 
 		let r = executor().call::<_, NeverNativeValue, fn() -> _>(
@@ -145,13 +145,13 @@ mod tests {
 		let mut t = TestExternalities::<Blake2Hasher>::new_with_code(COMPACT_CODE, map![
 			twox_128(&<balances::FreeBalance<Runtime>>::key_for(alice())).to_vec() => vec![69u8, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0],
 			twox_128(<balances::TotalIssuance<Runtime>>::key()).to_vec() => vec![69u8, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0],
-			twox_128(<balances::TransactionBaseFee<Runtime>>::key()).to_vec() => vec![70u8; 16],
-			twox_128(<balances::TransactionByteFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<balances::ExistentialDeposit<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<balances::CreationFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<balances::TransferFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<indices::NextEnumSet<Runtime>>::key()).to_vec() => vec![0u8; 16],
-			twox_128(&<system::BlockHash<Runtime>>::key_for(0)).to_vec() => vec![0u8; 32]
+			twox_128(&<system::BlockHash<Runtime>>::key_for(0)).to_vec() => vec![0u8; 32],
+			twox_128(<fees::TransactionBaseFee<Runtime>>::key()).to_vec() => vec![70u8; 16],
+			twox_128(<fees::TransactionByteFee<Runtime>>::key()).to_vec() => vec![0u8; 16]
 		]);
 
 		let r = executor().call::<_, NeverNativeValue, fn() -> _>(
@@ -178,13 +178,13 @@ mod tests {
 		let mut t = TestExternalities::<Blake2Hasher>::new_with_code(COMPACT_CODE, map![
 			twox_128(&<balances::FreeBalance<Runtime>>::key_for(alice())).to_vec() => vec![111u8, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0],
 			twox_128(<balances::TotalIssuance<Runtime>>::key()).to_vec() => vec![111u8, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0],
-			twox_128(<balances::TransactionBaseFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
-			twox_128(<balances::TransactionByteFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<balances::ExistentialDeposit<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<balances::CreationFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<balances::TransferFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<indices::NextEnumSet<Runtime>>::key()).to_vec() => vec![0u8; 16],
-			twox_128(&<system::BlockHash<Runtime>>::key_for(0)).to_vec() => vec![0u8; 32]
+			twox_128(&<system::BlockHash<Runtime>>::key_for(0)).to_vec() => vec![0u8; 32],
+			twox_128(<fees::TransactionBaseFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
+			twox_128(<fees::TransactionByteFee<Runtime>>::key()).to_vec() => vec![0u8; 16]
 		]);
 
 		let r = executor().call::<_, NeverNativeValue, fn() -> _>(
@@ -215,13 +215,13 @@ mod tests {
 		let mut t = TestExternalities::<Blake2Hasher>::new_with_code(BLOATY_CODE, map![
 			twox_128(&<balances::FreeBalance<Runtime>>::key_for(alice())).to_vec() => vec![111u8, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0],
 			twox_128(<balances::TotalIssuance<Runtime>>::key()).to_vec() => vec![111u8, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0],
-			twox_128(<balances::TransactionBaseFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
-			twox_128(<balances::TransactionByteFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<balances::ExistentialDeposit<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<balances::CreationFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<balances::TransferFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<indices::NextEnumSet<Runtime>>::key()).to_vec() => vec![0u8; 16],
-			twox_128(&<system::BlockHash<Runtime>>::key_for(0)).to_vec() => vec![0u8; 32]
+			twox_128(&<system::BlockHash<Runtime>>::key_for(0)).to_vec() => vec![0u8; 32],
+			twox_128(<fees::TransactionBaseFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
+			twox_128(<fees::TransactionByteFee<Runtime>>::key()).to_vec() => vec![0u8; 16]
 		]);
 
 		let r = executor().call::<_, NeverNativeValue, fn() -> _>(
@@ -266,8 +266,6 @@ mod tests {
 					(alice(), 111),
 					(charlie(), 100_000_000),
 				],
-				transaction_base_fee: 1,
-				transaction_byte_fee: 0,
 				existential_deposit: 0,
 				transfer_fee: 0,
 				creation_fee: 0,
@@ -305,6 +303,10 @@ mod tests {
 					(Keyring::Charlie.to_raw_public().into(), 1),
 				],
 			}),
+			fees: Some(FeesConfig {
+				transaction_base_fee: 1,
+				transaction_byte_fee: 0,
+			}),
 		}.build_storage().unwrap().0)
 	}
 
@@ -512,6 +514,10 @@ mod tests {
 				EventRecord {
 					phase: Phase::Finalization,
 					event: Event::treasury(treasury::RawEvent::Rollover(0))
+				},
+				EventRecord {
+					phase: Phase::Finalization,
+					event: Event::fees(fees::RawEvent::Charged(1, 1))
 				}
 			]);
 		});
@@ -589,6 +595,14 @@ mod tests {
 				EventRecord {
 					phase: Phase::Finalization,
 					event: Event::treasury(treasury::RawEvent::Rollover(0))
+				},
+				EventRecord {
+					phase: Phase::Finalization,
+					event: Event::fees(fees::RawEvent::Charged(1, 1))
+				},
+				EventRecord {
+					phase: Phase::Finalization,
+					event: Event::fees(fees::RawEvent::Charged(2, 1))
 				}
 			]);
 		});
@@ -800,13 +814,13 @@ mod tests {
 		let mut t = TestExternalities::<Blake2Hasher>::new_with_code(foreign_code, map![
 			twox_128(&<balances::FreeBalance<Runtime>>::key_for(alice())).to_vec() => vec![69u8, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0],
 			twox_128(<balances::TotalIssuance<Runtime>>::key()).to_vec() => vec![69u8, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0],
-			twox_128(<balances::TransactionBaseFee<Runtime>>::key()).to_vec() => vec![70u8; 16],
-			twox_128(<balances::TransactionByteFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<balances::ExistentialDeposit<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<balances::CreationFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<balances::TransferFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<indices::NextEnumSet<Runtime>>::key()).to_vec() => vec![0u8; 16],
-			twox_128(&<system::BlockHash<Runtime>>::key_for(0)).to_vec() => vec![0u8; 32]
+			twox_128(&<system::BlockHash<Runtime>>::key_for(0)).to_vec() => vec![0u8; 32],
+			twox_128(<fees::TransactionBaseFee<Runtime>>::key()).to_vec() => vec![70u8; 16],
+			twox_128(<fees::TransactionByteFee<Runtime>>::key()).to_vec() => vec![0u8; 16]
 		]);
 
 		let r = WasmExecutor::new().call(&mut t, 8, COMPACT_CODE, "Core_initialise_block", &vec![].and(&from_block_number(1u64)));
@@ -822,13 +836,13 @@ mod tests {
 		let mut t = TestExternalities::<Blake2Hasher>::new_with_code(foreign_code, map![
 			twox_128(&<balances::FreeBalance<Runtime>>::key_for(alice())).to_vec() => vec![111u8, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0],
 			twox_128(<balances::TotalIssuance<Runtime>>::key()).to_vec() => vec![111u8, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0],
-			twox_128(<balances::TransactionBaseFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
-			twox_128(<balances::TransactionByteFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<balances::ExistentialDeposit<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<balances::CreationFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<balances::TransferFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
 			twox_128(<indices::NextEnumSet<Runtime>>::key()).to_vec() => vec![0u8; 16],
-			twox_128(&<system::BlockHash<Runtime>>::key_for(0)).to_vec() => vec![0u8; 32]
+			twox_128(&<system::BlockHash<Runtime>>::key_for(0)).to_vec() => vec![0u8; 32],
+			twox_128(<fees::TransactionBaseFee<Runtime>>::key()).to_vec() => vec![0u8; 16],
+			twox_128(<fees::TransactionByteFee<Runtime>>::key()).to_vec() => vec![0u8; 16]
 		]);
 
 		let r = WasmExecutor::new().call(&mut t, 8, COMPACT_CODE, "Core_initialise_block", &vec![].and(&from_block_number(1u64)));
diff --git a/node/runtime/Cargo.toml b/node/runtime/Cargo.toml
index de16dbf48573d..1c62c328947ae 100644
--- a/node/runtime/Cargo.toml
+++ b/node/runtime/Cargo.toml
@@ -31,6 +31,7 @@ timestamp = { package = "srml-timestamp", path = "../../srml/timestamp", default
 treasury = { package = "srml-treasury", path = "../../srml/treasury", default-features = false }
 sudo = { package = "srml-sudo", path = "../../srml/sudo", default-features = false }
 srml-upgrade-key = { path = "../../srml/upgrade-key", default-features = false }
+fees = { package = "srml-fees", path = "../../srml/fees", default-features = false }
 node-primitives = { path = "../primitives", default-features = false }
 consensus_aura = { package = "substrate-consensus-aura-primitives", path = "../../core/consensus/aura/primitives", default-features = false }
 rustc-hex = { version = "2.0", optional = true }
@@ -61,6 +62,7 @@ std = [
 	"treasury/std",
 	"sudo/std",
 	"srml-upgrade-key/std",
+	"fees/std",
 	"version/std",
 	"node-primitives/std",
 	"serde/std",
diff --git a/node/runtime/src/lib.rs b/node/runtime/src/lib.rs
index dd1ae3b272d73..2a3b8d873fd6b 100644
--- a/node/runtime/src/lib.rs
+++ b/node/runtime/src/lib.rs
@@ -60,7 +60,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	spec_name: create_runtime_str!("node"),
 	impl_name: create_runtime_str!("substrate-node"),
 	authoring_version: 10,
-	spec_version: 28,
+	spec_version: 29,
 	impl_version: 29,
 	apis: RUNTIME_API_VERSIONS,
 };
@@ -107,6 +107,12 @@ impl balances::Trait for Runtime {
 	type Event = Event;
 }
 
+impl fees::Trait for Runtime {
+	type Event = Event;
+	type Amount = Balance;
+	type TransferAsset = Balances;
+}
+
 impl consensus::Trait for Runtime {
 	type Log = Log;
 	type SessionKey = SessionKey;
@@ -210,6 +216,7 @@ construct_runtime!(
 		Treasury: treasury,
 		Contract: contract::{Module, Call, Storage, Config<T>, Event<T>},
 		Sudo: sudo,
+		Fees: fees::{Module, Storage, Config<T>, Event<T>},
 	}
 );
 
@@ -228,7 +235,7 @@ pub type UncheckedExtrinsic = generic::UncheckedMortalCompactExtrinsic<Address,
 /// Extrinsic type that has already been checked.
 pub type CheckedExtrinsic = generic::CheckedExtrinsic<AccountId, Index, Call>;
 /// Executive: handles dispatch to the various modules.
-pub type Executive = executive::Executive<Runtime, Block, system::ChainContext<Runtime>, Balances, AllModules>;
+pub type Executive = executive::Executive<Runtime, Block, system::ChainContext<Runtime>, Fees, AllModules>;
 
 impl_runtime_apis! {
 	impl client_api::Core<Block> for Runtime {
diff --git a/node/runtime/wasm/Cargo.lock b/node/runtime/wasm/Cargo.lock
index 21c895238471a..d740d57ac6ad6 100644
--- a/node/runtime/wasm/Cargo.lock
+++ b/node/runtime/wasm/Cargo.lock
@@ -651,6 +651,7 @@ dependencies = [
  "srml-council 0.1.0",
  "srml-democracy 0.1.0",
  "srml-executive 0.1.0",
+ "srml-fees 0.1.0",
  "srml-grandpa 0.1.0",
  "srml-indices 0.1.0",
  "srml-session 0.1.0",
@@ -1349,6 +1350,7 @@ dependencies = [
  "sr-sandbox 0.1.0",
  "sr-std 0.1.0",
  "srml-balances 0.1.0",
+ "srml-fees 0.1.0",
  "srml-support 0.1.0",
  "srml-system 0.1.0",
  "srml-timestamp 0.1.0",
@@ -1402,6 +1404,22 @@ dependencies = [
  "srml-system 0.1.0",
 ]
 
+[[package]]
+name = "srml-fees"
+version = "0.1.0"
+dependencies = [
+ "hex-literal 0.1.1 (registry+https://github.com/rust-lang/crates.io-index)",
+ "parity-codec 3.0.0 (registry+https://github.com/rust-lang/crates.io-index)",
+ "parity-codec-derive 3.0.0 (registry+https://github.com/rust-lang/crates.io-index)",
+ "serde 1.0.81 (registry+https://github.com/rust-lang/crates.io-index)",
+ "sr-io 0.1.0",
+ "sr-primitives 0.1.0",
+ "sr-std 0.1.0",
+ "srml-support 0.1.0",
+ "srml-system 0.1.0",
+ "substrate-primitives 0.1.0",
+]
+
 [[package]]
 name = "srml-grandpa"
 version = "0.1.0"
diff --git a/node/runtime/wasm/target/wasm32-unknown-unknown/release/node_runtime.compact.wasm b/node/runtime/wasm/target/wasm32-unknown-unknown/release/node_runtime.compact.wasm
index 58d2541f73009..3eb99c7be3ccf 100644
Binary files a/node/runtime/wasm/target/wasm32-unknown-unknown/release/node_runtime.compact.wasm and b/node/runtime/wasm/target/wasm32-unknown-unknown/release/node_runtime.compact.wasm differ
diff --git a/srml/balances/src/lib.rs b/srml/balances/src/lib.rs
index e2edf5e3e4e52..554f92e868d62 100644
--- a/srml/balances/src/lib.rs
+++ b/srml/balances/src/lib.rs
@@ -28,11 +28,11 @@ use rstd::prelude::*;
 use rstd::{cmp, result};
 use parity_codec::Codec;
 use parity_codec_derive::{Encode, Decode};
-use srml_support::{StorageValue, StorageMap, Parameter, decl_event, decl_storage, decl_module};
+use srml_support::{StorageValue, StorageMap, Parameter, decl_event, decl_storage, decl_module, ensure};
 use srml_support::traits::{UpdateBalanceOutcome, Currency, EnsureAccountLiquid, OnFreeBalanceZero};
 use srml_support::dispatch::Result;
-use primitives::traits::{Zero, SimpleArithmetic, MakePayment,
-	As, StaticLookup, Member, CheckedAdd, CheckedSub, MaybeSerializeDebug};
+use primitives::traits::{Zero, SimpleArithmetic,
+	As, StaticLookup, Member, CheckedAdd, CheckedSub, MaybeSerializeDebug, TransferAsset};
 use system::{IsDeadAccount, OnNewAccount, ensure_signed};
 
 mod mock;
@@ -122,7 +122,7 @@ decl_storage! {
 
 						let per_block = balance / length;
 						let offset = begin * per_block + balance;
-						
+
 						(who.clone(), VestingSchedule { offset, per_block })
 					})
 			}).collect::<Vec<_>>()
@@ -154,14 +154,6 @@ decl_storage! {
 		/// `system::AccountNonce` is also deleted if `FreeBalance` is also zero (it also gets
 		/// collapsed to zero if it ever becomes less than `ExistentialDeposit`.
 		pub ReservedBalance get(reserved_balance): map T::AccountId => T::Balance;
-
-
-		// Payment stuff.
-
-		/// The fee to be paid for making a transaction; the base.
-		pub TransactionBaseFee get(transaction_base_fee) config(): T::Balance;
-		/// The fee to be paid for making a transaction; the per-byte portion.
-		pub TransactionByteFee get(transaction_byte_fee) config(): T::Balance;
 	}
 	add_extra_genesis {
 		config(balances): Vec<(T::AccountId, T::Balance)>;
@@ -505,15 +497,25 @@ where
 	}
 }
 
-impl<T: Trait> MakePayment<T::AccountId> for Module<T> {
-	fn make_payment(transactor: &T::AccountId, encoded_len: usize) -> Result {
-		let b = Self::free_balance(transactor);
-		let transaction_fee = Self::transaction_base_fee() + Self::transaction_byte_fee() * <T::Balance as As<u64>>::sa(encoded_len as u64);
-		if b < transaction_fee + Self::existential_deposit() {
-			return Err("not enough funds for transaction fee");
-		}
-		Self::set_free_balance(transactor, b - transaction_fee);
-		Self::decrease_total_stake_by(transaction_fee);
+impl<T: Trait> TransferAsset<T::AccountId> for Module<T> {
+	type Amount = T::Balance;
+
+	fn transfer(from: &T::AccountId, to: &T::AccountId, amount: T::Balance) -> Result {
+		Self::make_transfer(from, to, amount)
+	}
+
+	fn remove_from(who: &T::AccountId, value: T::Balance) -> Result {
+		T::EnsureAccountLiquid::ensure_account_liquid(who)?;
+		let b = Self::free_balance(who);
+		ensure!(b >= value, "account has too few funds");
+		Self::set_free_balance(who, b - value);
+		Self::decrease_total_stake_by(value);
+		Ok(())
+	}
+
+	fn add_to(who: &T::AccountId, value: T::Balance) -> Result {
+		Self::set_free_balance_creating(who, Self::free_balance(who) + value);
+		Self::increase_total_stake_by(value);
 		Ok(())
 	}
 }
diff --git a/srml/balances/src/mock.rs b/srml/balances/src/mock.rs
index 14892313f9a77..6dcff18c6eb49 100644
--- a/srml/balances/src/mock.rs
+++ b/srml/balances/src/mock.rs
@@ -106,8 +106,6 @@ impl ExtBuilder {
 			} else {
 				vec![(10, balance_factor), (20, balance_factor)]
 			},
-			transaction_base_fee: 0,
-			transaction_byte_fee: 0,
 			existential_deposit: self.existential_deposit,
 			transfer_fee: self.transfer_fee,
 			creation_fee: self.creation_fee,
diff --git a/srml/contract/Cargo.toml b/srml/contract/Cargo.toml
index 291d65ba35602..1a5b5eb06916b 100644
--- a/srml/contract/Cargo.toml
+++ b/srml/contract/Cargo.toml
@@ -20,6 +20,7 @@ srml-support = { path = "../support", default-features = false }
 system = { package = "srml-system", path = "../system", default-features = false }
 balances = { package = "srml-balances", path = "../balances", default-features = false }
 timestamp = { package = "srml-timestamp", path = "../timestamp", default-features = false }
+fees = { package = "srml-fees", path = "../fees", default-features = false }
 
 [dev-dependencies]
 wabt = "~0.7.4"
@@ -45,4 +46,5 @@ std = [
 	"timestamp/std",
 	"parity-wasm/std",
 	"pwasm-utils/std",
+	"fees/std",
 ]
diff --git a/srml/contract/src/lib.rs b/srml/contract/src/lib.rs
index b5f5f2c00eb06..c92c08ef85d1e 100644
--- a/srml/contract/src/lib.rs
+++ b/srml/contract/src/lib.rs
@@ -78,6 +78,7 @@ use srml_support::traits::OnFreeBalanceZero;
 use system::{ensure_signed, RawOrigin};
 use runtime_io::{blake2_256, twox_128};
 use timestamp;
+use fees;
 
 pub type CodeHash<T> = <T as system::Trait>::Hash;
 
@@ -91,7 +92,7 @@ pub trait ComputeDispatchFee<Call, Balance> {
 	fn compute_dispatch_fee(call: &Call) -> Balance;
 }
 
-pub trait Trait: balances::Trait + timestamp::Trait {
+pub trait Trait: fees::Trait + balances::Trait + timestamp::Trait {
 	/// The outer call dispatch type.
 	type Call: Parameter + Dispatchable<Origin=<Self as system::Trait>::Origin>;
 
@@ -135,14 +136,14 @@ where
 }
 
 /// The default dispatch fee computor computes the fee in the same way that
-/// implementation of `MakePayment` for balances module does.
+/// implementation of `ChargeBytesFee` for fees module does.
 pub struct DefaultDispatchFeeComputor<T: Trait>(PhantomData<T>);
 impl<T: Trait> ComputeDispatchFee<T::Call, T::Balance> for DefaultDispatchFeeComputor<T> {
 	fn compute_dispatch_fee(call: &T::Call) -> T::Balance {
 		let encoded_len = parity_codec::Encode::encode(&call).len();
-		let base_fee = <balances::Module<T>>::transaction_base_fee();
-		let byte_fee = <balances::Module<T>>::transaction_byte_fee();
-		base_fee + byte_fee * <T::Balance as As<u64>>::sa(encoded_len as u64)
+		let base_fee = <fees::Module<T>>::transaction_base_fee();
+		let byte_fee = <fees::Module<T>>::transaction_byte_fee();
+		<T::Balance as As<u64>>::sa(base_fee.as_() + byte_fee.as_() * encoded_len as u64)
 	}
 }
 
diff --git a/srml/contract/src/tests.rs b/srml/contract/src/tests.rs
index 80efd3785d65a..6febc2dec475b 100644
--- a/srml/contract/src/tests.rs
+++ b/srml/contract/src/tests.rs
@@ -27,6 +27,7 @@ use runtime_io;
 use srml_support::{StorageMap, StorageDoubleMap, assert_ok, impl_outer_event, impl_outer_dispatch, impl_outer_origin};
 use substrate_primitives::{Blake2Hasher};
 use system::{self, Phase, EventRecord};
+use fees;
 use {wabt, balances, consensus};
 use hex_literal::*;
 use assert_matches::assert_matches;
@@ -44,7 +45,7 @@ mod contract {
 }
 impl_outer_event! {
 	pub enum MetaEvent for Test {
-		balances<T>, contract<T>,
+		balances<T>, contract<T>, fees<T>,
 	}
 }
 impl_outer_origin! {
@@ -88,6 +89,11 @@ impl consensus::Trait for Test {
 	type SessionKey = UintAuthorityId;
 	type InherentOfflineReport = ();
 }
+impl fees::Trait for Test {
+	type Event = MetaEvent;
+	type Amount = u64;
+	type TransferAsset = Balances;
+}
 impl Trait for Test {
 	type Call = Call;
 	type Gas = u64;
@@ -165,8 +171,6 @@ impl ExtBuilder {
 		t.extend(
 			balances::GenesisConfig::<Test> {
 				balances: vec![],
-				transaction_base_fee: 0,
-				transaction_byte_fee: 0,
 				existential_deposit: self.existential_deposit,
 				transfer_fee: self.transfer_fee,
 				creation_fee: self.creation_fee,
diff --git a/srml/council/src/lib.rs b/srml/council/src/lib.rs
index d92b0d7178699..20c95b2bd9ff4 100644
--- a/srml/council/src/lib.rs
+++ b/srml/council/src/lib.rs
@@ -100,8 +100,6 @@ mod tests {
 		let mut t = system::GenesisConfig::<Test>::default().build_storage().unwrap().0;
 		t.extend(balances::GenesisConfig::<Test>{
 			balances: vec![(1, 10), (2, 20), (3, 30), (4, 40), (5, 50), (6, 60)],
-			transaction_base_fee: 0,
-			transaction_byte_fee: 0,
 			existential_deposit: 0,
 			transfer_fee: 0,
 			creation_fee: 0,
diff --git a/srml/democracy/src/lib.rs b/srml/democracy/src/lib.rs
index 6cd9c07979e41..5045a0ca3d8b3 100644
--- a/srml/democracy/src/lib.rs
+++ b/srml/democracy/src/lib.rs
@@ -486,8 +486,6 @@ mod tests {
 		let mut t = system::GenesisConfig::<Test>::default().build_storage().unwrap().0;
 		t.extend(balances::GenesisConfig::<Test>{
 			balances: vec![(1, 10), (2, 20), (3, 30), (4, 40), (5, 50), (6, 60)],
-			transaction_base_fee: 0,
-			transaction_byte_fee: 0,
 			existential_deposit: 0,
 			transfer_fee: 0,
 			creation_fee: 0,
diff --git a/srml/executive/Cargo.toml b/srml/executive/Cargo.toml
index bc7e8616fb9ae..836816a14c781 100644
--- a/srml/executive/Cargo.toml
+++ b/srml/executive/Cargo.toml
@@ -18,6 +18,7 @@ hex-literal = "0.1.0"
 substrate-primitives = { path = "../../core/primitives" }
 srml-indices = { path = "../indices" }
 balances = { package = "srml-balances", path = "../balances" }
+fees = { package = "srml-fees", path = "../fees" }
 parity-codec-derive = { version = "3.0", default-features = false }
 
 [features]
diff --git a/srml/executive/src/lib.rs b/srml/executive/src/lib.rs
index 04c44a53d3fce..dfc369174fefe 100644
--- a/srml/executive/src/lib.rs
+++ b/srml/executive/src/lib.rs
@@ -18,11 +18,12 @@
 
 #![cfg_attr(not(feature = "std"), no_std)]
 
+
 use rstd::prelude::*;
 use rstd::marker::PhantomData;
 use rstd::result;
 use primitives::traits::{self, Header, Zero, One, Checkable, Applyable, CheckEqual, OnFinalise,
-	OnInitialise, MakePayment, Hash, As, Digest};
+	OnInitialise, ChargeBytesFee, Hash, As, Digest};
 use srml_support::Dispatchable;
 use parity_codec::{Codec, Encode};
 use system::extrinsics_root;
@@ -58,7 +59,7 @@ impl<
 	Context: Default,
 	System: system::Trait,
 	Block: traits::Block<Header=System::Header, Hash=System::Hash>,
-	Payment: MakePayment<System::AccountId>,
+	Payment: ChargeBytesFee<System::AccountId>,
 	AllModules: OnInitialise<System::BlockNumber> + OnFinalise<System::BlockNumber>,
 > Executive<System, Block, Context, Payment, AllModules> where
 	Block::Extrinsic: Checkable<Context> + Codec,
@@ -166,7 +167,7 @@ impl<
 			) }
 
 			// pay any fees.
-			Payment::make_payment(sender, encoded_len).map_err(|_| internal::ApplyError::CantPay)?;
+			Payment::charge_base_bytes_fee(sender, encoded_len).map_err(|_| internal::ApplyError::CantPay)?;
 
 			// AUDIT: Under no circumstances may this function panic from here onwards.
 
@@ -238,7 +239,7 @@ impl<
 
 		if let (Some(sender), Some(index)) = (xt.sender(), xt.index()) {
 			// pay any fees.
-			if Payment::make_payment(sender, encoded_len).is_err() {
+			if Payment::charge_base_bytes_fee(sender, encoded_len).is_err() {
 				return TransactionValidity::Invalid(ApplyError::CantPay as i8)
 			}
 
@@ -284,6 +285,7 @@ mod tests {
 	use primitives::testing::{Digest, DigestItem, Header, Block};
 	use srml_support::{traits::Currency, impl_outer_origin, impl_outer_event};
 	use system;
+	use fees;
 	use hex_literal::{hex, hex_impl};
 
 	impl_outer_origin! {
@@ -293,7 +295,7 @@ mod tests {
 
 	impl_outer_event!{
 		pub enum MetaEvent for Runtime {
-			balances<T>,
+			balances<T>, fees<T>,
 		}
 	}
 
@@ -320,22 +322,29 @@ mod tests {
 		type EnsureAccountLiquid = ();
 		type Event = MetaEvent;
 	}
+	impl fees::Trait for Runtime {
+		type Event = MetaEvent;
+		type Amount = u64;
+		type TransferAsset = balances::Module<Runtime>;
+	}
 
 	type TestXt = primitives::testing::TestXt<Call<Runtime>>;
-	type Executive = super::Executive<Runtime, Block<TestXt>, system::ChainContext<Runtime>, balances::Module<Runtime>, ()>;
+	type Executive = super::Executive<Runtime, Block<TestXt>, system::ChainContext<Runtime>, fees::Module<Runtime>, ()>;
 
 	#[test]
 	fn balance_transfer_dispatch_works() {
 		let mut t = system::GenesisConfig::<Runtime>::default().build_storage().unwrap().0;
 		t.extend(balances::GenesisConfig::<Runtime> {
 			balances: vec![(1, 111)],
-			transaction_base_fee: 10,
-			transaction_byte_fee: 0,
 			existential_deposit: 0,
 			transfer_fee: 0,
 			creation_fee: 0,
 			vesting: vec![],
 		}.build_storage().unwrap().0);
+		t.extend(fees::GenesisConfig::<Runtime> {
+			transaction_base_fee: 10,
+			transaction_byte_fee: 0,
+		}.build_storage().unwrap().0);
 		let xt = primitives::testing::TestXt(Some(1), 0, Call::transfer(2, 69));
 		let mut t = runtime_io::TestExternalities::<Blake2Hasher>::new(t);
 		with_externalities(&mut t, || {
@@ -360,7 +369,7 @@ mod tests {
 				header: Header {
 					parent_hash: [69u8; 32].into(),
 					number: 1,
-					state_root: hex!("49cd58a254ccf6abc4a023d9a22dcfc421e385527a250faec69f8ad0d8ed3e48").into(),
+					state_root: hex!("6651861f40a8f42c033b3e937cb3513e6dbaf4be6bafb1561a19f884be3f58dd").into(),
 					extrinsics_root: hex!("03170a2e7597b7b7e3d84c05391d139a62b157e78786d8c082f29dcf4c111314").into(),
 					digest: Digest { logs: vec![], },
 				},
@@ -394,7 +403,7 @@ mod tests {
 				header: Header {
 					parent_hash: [69u8; 32].into(),
 					number: 1,
-					state_root: hex!("49cd58a254ccf6abc4a023d9a22dcfc421e385527a250faec69f8ad0d8ed3e48").into(),
+					state_root: hex!("6651861f40a8f42c033b3e937cb3513e6dbaf4be6bafb1561a19f884be3f58dd").into(),
 					extrinsics_root: [0u8; 32].into(),
 					digest: Digest { logs: vec![], },
 				},
diff --git a/srml/fees/Cargo.toml b/srml/fees/Cargo.toml
new file mode 100644
index 0000000000000..d3883e09b0bec
--- /dev/null
+++ b/srml/fees/Cargo.toml
@@ -0,0 +1,31 @@
+[package]
+name = "srml-fees"
+version = "0.1.0"
+authors = ["Parity Technologies <admin@parity.io>"]
+edition = "2018"
+
+[dependencies]
+hex-literal = "0.1.0"
+serde = { version = "1.0", default-features = false }
+parity-codec = { version = "3.0", default-features = false }
+parity-codec-derive = { version = "3.0", default-features = false }
+primitives = { package = "substrate-primitives", path = "../../core/primitives", default-features = false }
+rstd = { package = "sr-std", path = "../../core/sr-std", default-features = false }
+runtime_io = { package = "sr-io", path = "../../core/sr-io", default-features = false }
+runtime_primitives = { package = "sr-primitives", path = "../../core/sr-primitives", default-features = false }
+srml-support = { package = "srml-support", path = "../support", default-features = false }
+system = { package = "srml-system", path = "../system", default-features = false }
+
+[features]
+default = ["std"]
+std = [
+	"serde/std",
+	"parity-codec/std",
+	"parity-codec-derive/std",
+	"primitives/std",
+	"rstd/std",
+	"runtime_io/std",
+	"runtime_primitives/std",
+	"srml-support/std",
+	"system/std",
+]
diff --git a/srml/fees/src/lib.rs b/srml/fees/src/lib.rs
new file mode 100644
index 0000000000000..a86ea68cdb46e
--- /dev/null
+++ b/srml/fees/src/lib.rs
@@ -0,0 +1,116 @@
+// Copyright 2019 Parity Technologies (UK) Ltd.
+// This file is part of Substrate.
+
+// Substrate is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+
+// Substrate is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+
+// You should have received a copy of the GNU General Public License
+// along with Substrate.  If not, see <http://www.gnu.org/licenses/>.
+
+//! Handles all transaction fee related operations
+
+// Ensure we're `no_std` when compiling for Wasm.
+#![cfg_attr(not(feature = "std"), no_std)]
+
+use srml_support::{dispatch::Result, Parameter, StorageMap, decl_event, decl_storage, decl_module};
+use runtime_primitives::traits::{
+	As, Member, SimpleArithmetic, ChargeBytesFee, ChargeFee,
+	TransferAsset, CheckedAdd, CheckedSub, CheckedMul, Zero
+};
+use system;
+
+mod mock;
+mod tests;
+
+pub trait Trait: system::Trait {
+	/// The overarching event type.
+	type Event: From<Event<Self>> + Into<<Self as system::Trait>::Event>;
+
+	/// The unit for fee amount
+	type Amount: Member + Parameter + SimpleArithmetic + Default + Copy + As<u64>;
+
+	/// A function does the asset transfer between accounts
+	type TransferAsset: TransferAsset<Self::AccountId, Amount = Self::Amount>;
+}
+
+decl_module! {
+	pub struct Module<T: Trait> for enum Call where origin: T::Origin {
+		fn deposit_event<T>() = default;
+
+		fn on_finalise() {
+			let extrinsic_count = <system::Module<T>>::extrinsic_count();
+			(0..extrinsic_count).for_each(|index| {
+				// Deposit `Charged` event if some amount of fee charged.
+				let fee = <CurrentTransactionFee<T>>::take(index);
+				if !fee.is_zero() {
+					Self::deposit_event(RawEvent::Charged(index, fee));
+				}
+			});
+		}
+	}
+}
+
+decl_event!(
+	pub enum Event<T> where <T as Trait>::Amount {
+		/// Fee charged (extrinsic_index, fee_amount)
+		Charged(u32, Amount),
+	}
+);
+
+decl_storage! {
+	trait Store for Module<T: Trait> as Fees {
+		/// The fee to be paid for making a transaction; the base.
+		pub TransactionBaseFee get(transaction_base_fee) config(): T::Amount;
+		/// The fee to be paid for making a transaction; the per-byte portion.
+		pub TransactionByteFee get(transaction_byte_fee) config(): T::Amount;
+
+		/// The `extrinsic_index => accumulated_fees` map, containing records to
+		/// track the overall charged fees for each transaction.
+		///
+		/// All records should be removed at finalise stage.
+		CurrentTransactionFee get(current_transaction_fee): map u32 => T::Amount;
+	}
+}
+
+impl<T: Trait> ChargeBytesFee<T::AccountId> for Module<T> {
+	fn charge_base_bytes_fee(transactor: &T::AccountId, encoded_len: usize) -> Result {
+		let bytes_fee = Self::transaction_byte_fee().checked_mul(
+			&<T::Amount as As<u64>>::sa(encoded_len as u64)
+		).ok_or_else(|| "bytes fee overflow")?;
+		let overall = Self::transaction_base_fee().checked_add(&bytes_fee).ok_or_else(|| "bytes fee overflow")?;
+		Self::charge_fee(transactor, overall)
+	}
+}
+
+impl<T: Trait> ChargeFee<T::AccountId> for Module<T> {
+	type Amount = T::Amount;
+
+	fn charge_fee(transactor: &T::AccountId, amount: T::Amount) -> Result {
+		let extrinsic_index = <system::Module<T>>::extrinsic_index().ok_or_else(|| "no extrinsic index found")?;
+		let current_fee = Self::current_transaction_fee(extrinsic_index);
+		let new_fee = current_fee.checked_add(&amount).ok_or_else(|| "fee got overflow after charge")?;
+
+		T::TransferAsset::remove_from(transactor, amount)?;
+
+		<CurrentTransactionFee<T>>::insert(extrinsic_index, new_fee);
+		Ok(())
+	}
+
+	fn refund_fee(transactor: &T::AccountId, amount: T::Amount) -> Result {
+		let extrinsic_index = <system::Module<T>>::extrinsic_index().ok_or_else(|| "no extrinsic index found")?;
+		let current_fee = Self::current_transaction_fee(extrinsic_index);
+		let new_fee = current_fee.checked_sub(&amount).ok_or_else(|| "fee got underflow after refund")?;
+
+		T::TransferAsset::add_to(transactor, amount)?;
+
+		<CurrentTransactionFee<T>>::insert(extrinsic_index, new_fee);
+		Ok(())
+	}
+}
diff --git a/srml/fees/src/mock.rs b/srml/fees/src/mock.rs
new file mode 100644
index 0000000000000..46058e192182b
--- /dev/null
+++ b/srml/fees/src/mock.rs
@@ -0,0 +1,109 @@
+// Copyright 2019 Parity Technologies (UK) Ltd.
+// This file is part of Substrate.
+
+// Substrate is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+
+// Substrate is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+
+// You should have received a copy of the GNU General Public License
+// along with Substrate.  If not, see <http://www.gnu.org/licenses/>.
+
+//! Test utilities
+
+#![cfg(test)]
+
+use runtime_primitives::BuildStorage;
+use runtime_primitives::{
+	traits::{IdentityLookup, BlakeTwo256, TransferAsset},
+	testing::{Digest, DigestItem, Header},
+};
+use primitives::{H256, Blake2Hasher};
+use runtime_io;
+use srml_support::{impl_outer_origin, impl_outer_event};
+use crate::{GenesisConfig, Module, Trait, system};
+
+impl_outer_origin!{
+	pub enum Origin for Test {}
+}
+
+mod fees {
+	pub use crate::Event;
+}
+
+impl_outer_event!{
+	pub enum TestEvent for Test {
+		fees<T>,
+	}
+}
+
+pub struct TransferAssetMock;
+
+impl<AccountId> TransferAsset<AccountId> for TransferAssetMock {
+	type Amount = u64;
+
+	fn transfer(_: &AccountId, _: &AccountId, _: Self::Amount) -> Result<(), &'static str> { Ok(()) }
+	fn remove_from(_: &AccountId, _: Self::Amount) -> Result<(), &'static str> { Ok(()) }
+	fn add_to(_: &AccountId, _: Self::Amount) -> Result<(), &'static str> { Ok(()) }
+}
+
+// Workaround for https://github.com/rust-lang/rust/issues/26925 . Remove when sorted.
+#[derive(Clone, PartialEq, Eq, Debug)]
+pub struct Test;
+impl system::Trait for Test {
+	type Origin = Origin;
+	type Index = u64;
+	type BlockNumber = u64;
+	type Hash = H256;
+	type Hashing = BlakeTwo256;
+	type Digest = Digest;
+	type AccountId = u64;
+	type Lookup = IdentityLookup<u64>;
+	type Header = Header;
+	type Event = TestEvent;
+	type Log = DigestItem;
+}
+impl Trait for Test {
+	type Amount = u64;
+	type Event =TestEvent;
+	type TransferAsset = TransferAssetMock;
+}
+
+pub type System = system::Module<Test>;
+pub type Fees = Module<Test>;
+
+pub struct ExtBuilder {
+	transaction_base_fee: u64,
+	transaction_byte_fee: u64,
+}
+impl Default for ExtBuilder {
+	fn default() -> Self {
+		Self {
+			transaction_base_fee: 0,
+			transaction_byte_fee: 0,
+		}
+	}
+}
+impl ExtBuilder {
+	pub fn transaction_base_fee(mut self, transaction_base_fee: u64) -> Self {
+		self.transaction_base_fee = transaction_base_fee;
+		self
+	}
+	pub fn transaction_byte_fee(mut self, transaction_byte_fee: u64) -> Self {
+		self.transaction_byte_fee = transaction_byte_fee;
+		self
+	}
+	pub fn build(self) -> runtime_io::TestExternalities<Blake2Hasher> {
+		let mut t = system::GenesisConfig::<Test>::default().build_storage().unwrap().0;
+		t.extend(GenesisConfig::<Test> {
+			transaction_base_fee: self.transaction_base_fee,
+			transaction_byte_fee: self.transaction_byte_fee,
+		}.build_storage().unwrap().0);
+		t.into()
+	}
+}
diff --git a/srml/fees/src/tests.rs b/srml/fees/src/tests.rs
new file mode 100644
index 0000000000000..a1c96570629e8
--- /dev/null
+++ b/srml/fees/src/tests.rs
@@ -0,0 +1,174 @@
+// Copyright 2019 Parity Technologies (UK) Ltd.
+// This file is part of Substrate.
+
+// Substrate is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+
+// Substrate is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+
+// You should have received a copy of the GNU General Public License
+// along with Substrate.  If not, see <http://www.gnu.org/licenses/>.
+
+//! Tests for the module.
+
+#![cfg(test)]
+
+use super::*;
+use runtime_io::with_externalities;
+use runtime_primitives::traits::{OnFinalise};
+use system::{EventRecord, Phase};
+
+use mock::{Fees, System, ExtBuilder};
+use srml_support::{assert_ok, assert_err};
+
+#[test]
+fn charge_base_bytes_fee_should_work() {
+	with_externalities(
+		&mut ExtBuilder::default()
+			.transaction_base_fee(3)
+			.transaction_byte_fee(5)
+			.build(),
+		|| {
+			System::set_extrinsic_index(0);
+			assert_ok!(Fees::charge_base_bytes_fee(&0, 7));
+			assert_eq!(Fees::current_transaction_fee(0), 3 + 5 * 7);
+
+			System::set_extrinsic_index(1);
+			assert_ok!(Fees::charge_base_bytes_fee(&0, 11));
+			assert_eq!(Fees::current_transaction_fee(1), 3 + 5 * 11);
+
+			System::set_extrinsic_index(3);
+			assert_ok!(Fees::charge_base_bytes_fee(&0, 13));
+			assert_eq!(Fees::current_transaction_fee(3), 3 + 5 * 13);
+		}
+	);
+}
+
+#[test]
+fn charge_base_bytes_fee_should_not_work_if_bytes_fee_overflow() {
+	// bytes fee overflows.
+	with_externalities(
+		&mut ExtBuilder::default()
+			.transaction_base_fee(0)
+			.transaction_byte_fee(u64::max_value())
+			.build(),
+		|| {
+			System::set_extrinsic_index(0);
+			assert_err!(
+				Fees::charge_base_bytes_fee(&0, 2),
+				"bytes fee overflow"
+			);
+		}
+	);
+}
+
+#[test]
+fn charge_base_bytes_fee_should_not_work_if_overall_fee_overflow() {
+	// bytes fee doesn't overflow, but overall fee (bytes_fee + base_fee) does
+	with_externalities(
+		&mut ExtBuilder::default()
+			.transaction_base_fee(u64::max_value())
+			.transaction_byte_fee(1)
+			.build(),
+		|| {
+			System::set_extrinsic_index(0);
+			assert_err!(
+				Fees::charge_base_bytes_fee(&0, 1),
+				"bytes fee overflow"
+			);
+		}
+	);
+}
+
+#[test]
+fn charge_fee_should_work() {
+	with_externalities(&mut ExtBuilder::default().build(), || {
+		System::set_extrinsic_index(0);
+		assert_ok!(Fees::charge_fee(&0, 2));
+		assert_ok!(Fees::charge_fee(&0, 3));
+		assert_eq!(Fees::current_transaction_fee(0), 2 + 3);
+
+		System::set_extrinsic_index(2);
+		assert_ok!(Fees::charge_fee(&0, 5));
+		assert_ok!(Fees::charge_fee(&0, 7));
+		assert_eq!(Fees::current_transaction_fee(2), 5 + 7);
+	});
+}
+
+#[test]
+fn charge_fee_when_overflow_should_not_work() {
+	with_externalities(&mut ExtBuilder::default().build(), || {
+		System::set_extrinsic_index(0);
+		assert_ok!(Fees::charge_fee(&0, u64::max_value()));
+		assert_err!(Fees::charge_fee(&0, 1), "fee got overflow after charge");
+	});
+}
+
+#[test]
+fn refund_fee_should_work() {
+	with_externalities(&mut ExtBuilder::default().build(), || {
+		System::set_extrinsic_index(0);
+		assert_ok!(Fees::charge_fee(&0, 5));
+		assert_ok!(Fees::refund_fee(&0, 3));
+		assert_eq!(Fees::current_transaction_fee(0), 5 - 3);
+	});
+}
+
+#[test]
+fn refund_fee_when_underflow_should_not_work() {
+	with_externalities(&mut ExtBuilder::default().build(), || {
+		System::set_extrinsic_index(0);
+		assert_err!(Fees::refund_fee(&0, 1), "fee got underflow after refund");
+	});
+}
+
+#[test]
+fn on_finalise_should_work() {
+	with_externalities(&mut ExtBuilder::default().build(), || {
+		// charge fees in extrinsic index 3
+		System::set_extrinsic_index(3);
+		assert_ok!(Fees::charge_fee(&0, 1));
+		System::note_applied_extrinsic(&Ok(()), 1);
+		// charge fees in extrinsic index 5
+		System::set_extrinsic_index(5);
+		assert_ok!(Fees::charge_fee(&0, 1));
+		System::note_applied_extrinsic(&Ok(()), 1);
+		System::note_finished_extrinsics();
+
+		// `current_transaction_fee`, `extrinsic_count` should be as expected.
+		assert_eq!(Fees::current_transaction_fee(3), 1);
+		assert_eq!(Fees::current_transaction_fee(5), 1);
+		assert_eq!(System::extrinsic_count(), 5 + 1);
+
+		<Fees as OnFinalise<u64>>::on_finalise(1);
+
+		// When finalised, `CurrentTransactionFee` records should be cleared.
+		assert_eq!(Fees::current_transaction_fee(3), 0);
+		assert_eq!(Fees::current_transaction_fee(5), 0);
+
+		// When finalised, if any fee charged in a extrinsic, a `Charged` event should be deposited
+		// for it.
+		let fee_charged_events: Vec<EventRecord<mock::TestEvent>> = System::events()
+			.into_iter()
+			.filter(|e| match e.event {
+				mock::TestEvent::fees(RawEvent::Charged(_, _)) => return true,
+				_ => return false,
+			})
+			.collect();
+		assert_eq!(fee_charged_events, vec![
+			EventRecord {
+				phase: Phase::Finalization,
+				event: RawEvent::Charged(3, 1).into(),
+			},
+			EventRecord {
+				phase: Phase::Finalization,
+				event: RawEvent::Charged(5, 1).into(),
+			},
+		]);
+	});
+}
diff --git a/srml/staking/src/mock.rs b/srml/staking/src/mock.rs
index 5fc411e609385..a76c0fed85aad 100644
--- a/srml/staking/src/mock.rs
+++ b/srml/staking/src/mock.rs
@@ -104,8 +104,6 @@ pub fn new_test_ext(
 		} else {
 			vec![(10, balance_factor), (20, balance_factor)]
 		},
-		transaction_base_fee: 0,
-		transaction_byte_fee: 0,
 		existential_deposit: ext_deposit,
 		transfer_fee: 0,
 		creation_fee: 0,
diff --git a/srml/system/src/lib.rs b/srml/system/src/lib.rs
index 2f3ea10457a48..8f3fd1df8cbaf 100644
--- a/srml/system/src/lib.rs
+++ b/srml/system/src/lib.rs
@@ -273,6 +273,11 @@ impl<T: Trait> Module<T> {
 		storage::unhashed::get(well_known_keys::EXTRINSIC_INDEX)
 	}
 
+	/// Gets extrinsics count.
+	pub fn extrinsic_count() -> u32 {
+		<ExtrinsicCount<T>>::get().unwrap_or_default()
+	}
+
 	/// Gets a total length of all executed extrinsics.
 	pub fn all_extrinsics_len() -> u32 {
 		<AllExtrinsicsLen<T>>::get().unwrap_or_default()
diff --git a/srml/treasury/src/lib.rs b/srml/treasury/src/lib.rs
index a4fd741bb3a3e..ad861ac7ece83 100644
--- a/srml/treasury/src/lib.rs
+++ b/srml/treasury/src/lib.rs
@@ -303,8 +303,6 @@ mod tests {
 		let mut t = system::GenesisConfig::<Test>::default().build_storage().unwrap().0;
 		t.extend(balances::GenesisConfig::<Test>{
 			balances: vec![(0, 100), (1, 99), (2, 1)],
-			transaction_base_fee: 0,
-			transaction_byte_fee: 0,
 			transfer_fee: 0,
 			creation_fee: 0,
 			existential_deposit: 0,