Service Charge
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A Service Charge is an additional fee that a consumer pays for services not included within the factor price of a product or service.
- AKA: User Charges, User Fees, Service Fee, Charge for Service, Surcharge.
- Example(s):
- Counter-Example(s):
- a Flat Fee.
- a Contingent Fee.
- a Back Charge.
- a Factor Price.
- a Debt.
- a Interest Payment.
- See: Fee, Net Present Value, Tax, Local Government Service, Enterprise Fund.
References
2016
- (City Council of Barnstable, 2016b) ⇒ Town of Barnstable. (2016). “Town of Barnstable Adopted Operating Budget - 2017."
- QUOTE: Charges for services: (Also called User Charges or Fees) The charges levied on the users of particular goods or services provided by local government requiring individuals to pay for the private benefits they receive. Such charges reduce the reliance on property tax funding.
- (Investopedia, 2016) ⇒ http://www.investopedia.com/terms/s/service-charge.asp
- A service charge is 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. (...) 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.
- (Wikipedia, 2016) ⇒ http://en.wikipedia.org/wiki/Fee
- (...) A service fee, service charge, or surcharge is a fee added to a customer's bill. The purpose of a service charge often depends on the nature of the product and corresponding service provided. Examples of why this fee is charged are: travel time expenses, truck rental fees, liability and workers' compensation insurance fees, and planning fees. UPS and FedEx have recently begun surcharges for fuel.
Restaurants and banquet halls charging service charges in lieu of tips must distribute them to their wait staff in some US states (e.g., Massachusetts, New York, Montana), but in the state of Kentucky may keep them.
- (...) A service fee, service charge, or surcharge is a fee added to a customer's bill. The purpose of a service charge often depends on the nature of the product and corresponding service provided. Examples of why this fee is charged are: travel time expenses, truck rental fees, liability and workers' compensation insurance fees, and planning fees. UPS and FedEx have recently begun surcharges for fuel.