Service charge

A service charge is a fee that is added to the billing for a primary product or the delivery of a service. A business may add a service fee in order to offset the additional cost of customer interactions, or simply as a tool for increasing its profits. Examples of service fees are:

  • Airline rebooking charges
  • Airline baggage fees
  • ATM transaction fees
  • Concert ticketing fees
  • Tips added to a hotel or restaurant billing