service charge

service charge definition - business

service charge

A fee, either a fixed amount or a percentage of a bill, charged to customers for a service. For example, a restaurant may levy a 15% service charge on the food and drink bill of parties with six or more customers. A utility may include a monthly service charge to cover meter reading and billing. A credit card company is likely to levy service charges for late payments or for exceeding the credit limit on an account.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.