Service Charge

A Service charge is a fee that can be added onto a credit account for a number of different actions. Credit card issuers might apply a service charge on unpaid balances, on payments that are not made on time, for exceeding a credit limit, and more. The amount of the service charge varies and often is based on the reason it was triggered. A service charge usually will be either a flat fee or a percentage of an account balance or purchase. Some merchants can now legally pass on their service charges (the fees they have to pay credit card processors) to customers who pay using credit cards.