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Posted by / 26-Oct-2020 00:37

With respect to events tickets, online reservations and payments, and other transactions, there is sometimes a service charge (often called a convenience fee) that serves as additional compensation for the company facilitating the transaction.

Ticketmaster and others charge this, and have made a business model of it.

Direc TV charges this when ordering a pay-per-view movie via telephone instead of through the set-top box. began charging a fee just to visit a teller, prompting such customer anger that the banks were forced to back down.

Some companies charge for technical support, either prepaid or by using a premium-rate telephone number (such as the 1–900 numbers in North America). A speaking fee is a payment awarded to an individual for speaking at a public event.

Another fee is the early-termination fee applied nearly universally to cellphone contracts, supposedly to cover the remaining part of the subsidy that the provider prices the phones with.

If the user terminates before the end of the term, he or she will be charged, often well over 0. S., mobile phone companies have come under heavy criticism for this anti-competitive practice, and the Federal Communications Commission (FCC) is considering limits to prevent price gouging, such as requiring the fees to be prorated. Bank fees are assessed to customers for various services and as penalties.

While the extra income may be necessary to prevent bankruptcy, the practice of not including mandatory fees in the stated price is deceptive.UPS and Fed Ex 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.Bank of America charges a denial fee, literally a fee for refusing service to the customer (if there are insufficient funds or a daily limit), and a fee to simply check the account balance at a "foreign" (other bank's) ATM.Following the 2008 financial crisis and legislation passed by Congress, banks have modified many credit card agreements with customers sometimes increasing interest rates or reducing credit limits.

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However, with the oil price increases since 2003, many are increasing fees.