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.
finance charge that is triggered by a specific event. For example, a service
charge may be assessed on checks issued by credit card companies that allow the
card holder to use them for purchases or to pay off other credit cards. A
service charge also may be assessed when an overdraft protection on a credit
card is triggered.