What is a service fee? (with photos)

There is a service charge involved in ordering the taxi service.

A service fee is a monetary charge added to a customer’s bill or bill for a service provided by a business. There are several types of fees that vary by industry. The most common fees for consumers include bank fees, credit card fees, and service fees from other utility providers.

Banks may charge a service fee for services rendered, account maintenance or as a fine; these fees generally vary by bank and account. Some banks charge a monthly fee to maintain an account. In other cases, a minimum daily account balance is required, and when the account balance falls below the minimum, a fee may be charged. Banks may also charge wire transfer fees to electronically transfer money from one account to another. Fines may be levied for overdrafting an account, which is often referred to as an insufficient funds fee (NSF).

Credit card companies may incur various service fees, including annual membership fees.

Credit card companies may impose fees such as finance charges, annual memberships, cash advance service, balance transfer, or as a penalty; these fees also vary by company and account. Financial expenses can be assessed for each transaction charged to an account, while annual membership fees are typically charged each year a line of credit is granted to a consumer. Cash advance fees apply when cash loans are made from the line of credit – the fee is usually a percentage of the amount of cash advanced. Balance transfer fees are charged when one credit card is used to pay the balance of another credit card. Fines can also result from late payment and spending over your credit card limit.

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Cell phone companies may charge service fees for things like early contract termination.

Another common type of service charge comes from various utility providers. They may charge fees for processing payments or as a penalty. Cell phone companies, cable or satellite television companies, and Internet service providers often charge an early termination fee when a customer fails to maintain service for the duration of the contract. Late payment fees are also common among utility providers.

Records a wire transfer, which usually comes with a service fee.

Examples of other miscellaneous service fees might include a delivery fee when ordering food, an application fee when applying for an apartment, or a mortgage company tax fee. Typically, a fee is charged when property taxes are collected monthly with the payment of a mortgage, and most mortgage companies use a tax service agency to administer these taxes and pass the cost on to the consumer, though often be a mandatory service.

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