What is a service fee?

A service fee is an additional charge or fee that is added to the cost of a product or service to cover the administrative, processing, or convenience costs associated with providing that service. It is a common practice in many industries, including hospitality, banking, and transportation. Service fees may be a flat rate or a percentage of the total cost of the service. They are often non-negotiable and charged regardless of whether the customer uses the service or not. Service fees can help businesses cover the costs of providing high-quality services and maintain their profit margins. However, customers should always be aware of any service fees associated with a product or service before making a purchase.