In this paper, the impacts of transaction cost are investigated under a tradable credit scheme (TCS) considering user heterogeneity. Under the credit scheme, a certain number of credits are initially distributed among all the travelers for a specific O-D pair, and a link-specific number of credits are charged from travelers using that link. The scheme allows for free trading of the credits among travelers, and both the sellers and buyers need to pay an extra transaction cost, which is associated with trading volume. Travelers in the network are assumed to be heterogenous with a discrete value of time (VOT). For a given tradable credit scheme and discrete VOT set, the combined network user equilibrium (UE) and credit-trading market equilibrium (ME) are formulated as a variational inequality (VI) problem, and the conditions for the uniqueness of the network flow pattern and the credit price at equilibrium are established. A bisection-based trial-and-error method is proposed to solve the proposed VI problems. Based on the simulation results, the computational advantages of the proposed method are demonstrated. Then, an example network is presented to investigate the effect of transaction cost in different kinds of markets. It is found that the implementation of transaction cost can suppress trading volume and either elevate or drive down the equilibrium credit price. Besides, it is also found that users with the lowest VOT suffer the most from the increase in transaction cost, while those with the higher VOT are more likely to experience a reduction in travel cost with the implementation of TCS.