There are many definitions for the term service charge, and a number of heated opinions on when such charges are justifiable. Standard definition of this concept is that the service charge is often a fee for some service rendered that is in addition to fees already paid for that service. In some cases, service charges stand alone and don’t include additional fees, but very often they’re tacked onto fees for other things.

People may note service charges added to all types of things. For instance, sometimes cable companies assess fees for giving customer service, to those people who are already paying customers. Airlines may add a variety of service fees and could even charge to book a ticket; hotels may do the same and add a booking fee.

This might be very noticeable if people use discount travel sites, in which to access discounts, they must pay a fee. Ticket sellers for main events also typically add service charges to the price of the ticket. Another common service charge may exist if people pay their bills over the phone with a customer service representatives or if they use a variety of pay services like Western Union® to get their bills paid on time.

People may be most familiar with the service charge as it relates to banking. Banks may charge a monthly service fee for customers, though some do not especially if people use direct deposit. Other fees involved can occur when people use an ATM that doesn’t belong to their bank, and if people overdraw their account. The last is likely to be very noticeable, since banks may charge $30 US Dollars (USD) or more even if they don’t cover the overdraft.

In fact, one charge that banks had to quickly abandon centered on the issue of talking to tellers. In the early 2000s, some banks began to charge a teller fee, but customers quickly closed their accounts, feeling that this service was a right and not appropriate to charge. Banks quickly got the message that this was one fee they could not charge, though other things like utility companies have instituted similar fees.

Another type of service charge has many people confused. This is when people at restaurants are told to pay a set percentage of the bill as a service fee in lieu of a tip. Many waiters and waitresses can point to the immediate problems with this scenario. Any fee is not a tip and belongs to the restaurant owner and not to the waiter or waitress. This means the owner can distribute the fee in any manner he sees fit, or can keep all of it.

An additional example of this is when people pay a delivery fee for their pizza. They might want to bear in mind that the person making that delivery is not likely to get a tip out of the fee. Institution of service charges distresses those people who depend on tips for a living, since these may reduce income if a proprietor is injudicious in distributing them.