Service Charge

What is a service charge?

A service charge is a fee charged to customers for something specific, for example, a bank charging a fee for utilizing an ATM that is not part of its network or a vendor charging a fee for making a payment with a credit card. It likewise might be called a customer service fee or maintenance fee.

More profound definition

Organizations regularly charge a service fee for things that go past the scope of purchasing their goods and services or having a relationship with them. This incorporates things that require more work on the company's end or more individual association between the customer and company delegates.
For instance, when you buy a show ticket or book a lodging, you're not just paying to see the entertainer or remain in the room. There are several different things the company must do as part of offering the support, for example, hiring security for a show or paying individuals to clean and prepare the lodging.
While the service charge is an extra fee attached past the fundamental cost of the product or service, it isn't discretionary. To purchase the product or service, the customer additionally must pay the service charge, which is however much the company picks.
Many banks charge service fees for things like falling below a base required balance, getting a paper statement, making a foreign transaction or supplanting a debit card. A few banks even require an account to be open for a base period of time and will charge an early closure fee on the off chance that the account is closed before that time.

Service charge model

In the event that you have a checking account, you might cause several service charges. For instance, your bank might charge a month to month maintenance fee basically for having an account with them. The bank might defer the fee on the off chance that you surpass a specific number of transactions every month or meet different conditions.
You likewise may pay a service charge to receive a paper statement every month, to get cash from ATMs that have a place with different banks or when you bounce a check.

Features

• Service charges are unique in relation to tips, which are paid at the prudence of the customer in the wake of getting a service.
• A service charge is collected to pay for services connected with the primary product or service being purchased.
• Numerous industries collect service charges including eateries, banking, and travel and the travel industry.