Service Charge

A service charge is a fee to cover services connected to the primary goods or services being bought. The fee is often charged at the point of the transactions.

Service fees are collected in various businesses, including banking, travel, and tourism. When these fees are paid, they could be used for administrative or processing expenses or for services provided to the customer.

Direct payment of service fees is made to the business. They are not tips that are given to the worker who provided the service. The decision of whether and how much more to tip is totally up to the customer.

Service fees are extra costs associated with buying a good or service. They are often collected when the customer’s transaction with the business. For instance, to cover the expense of security or to provide the convenience of online purchasing, a musical venue may add a service fee to the base price of a ticket at the time of purchase.

Related Terms

Manage and Control Subscription Payments