Service Charge

DEFINITION of 'Service Charge'

A type of fee charged to cover services related to the primary product or service being purchased. For example, a concert venue may charge a service fee in addition to the initial price of a ticket in order to cover the cost of security or for allowing electronic purchases. Another example would be a fee for using the ATM of a competing bank.

BREAKING DOWN 'Service Charge'

Services fees go by a number of different names depending on the industry, including booking fees (hotels), security fees (travel), maintenance fees (banking) and customer service fees. These fees are often levied when human interaction between a consumer and the company is involved, with services beyond the physical good itself considered extra.

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