Service Charge

Definition

• Fees charged to customers for specific services or as a penalty for not meeting certain requirements such as insufficient funds in a chequing account.

Notes
Bank account transaction code.

Synonyms
fee, toll, cost, levy, account

Acronyms
SC

Related Terms and Acronyms

• Account Agreement — Definition,
  • An agreement that you sign and which lists your rights and responsibilities and the bank's rights and responsibilities for the bank account.
• Annual Administrative Fee — Definition,
  • An annual (yearly) fee charged for the administration of a service.
• ATM Access Fee — Definition,
  • Fee charged in addition to the individual account fees for an account holder to gain access to the ATM system. Can be monthly, weekly, or annual fee. See also "Automated Teller Machine."
• ATM Card Fee — Definition,
  • This is not a debit card fee. It can be an annual or monthly fee charged on top of individual account fees to obtain an ATM card. The fee may also be charged per card or per account. For example, if an account is held jointly, the bank may charge for the second person to hold a card or it may charge one fee for all the cards on an account.
• Automatic Payment — Definition,
  • An arrangement that authorizes periodic withdrawals to be made from a chequing or savings account to pay bills, usually regular monthly payments such as for rent or mortgages.
• Early Withdrawal Penalty — Definition,
  • A depositor forfeits interest or is charged a service fee for either withdrawing funds or closing a time deposit before the maturity date.
• Flat Fee — Definition,
  • A fixed charge that a broker requests instead of a commission.
• Minimum Average Balance to Avoid Fees — Definition,
  • The balance in the account from day-to-day must average this amount when calculated. If the account balance falls below this amount you will be subject to the monthly charge and/or per usage transaction charges.
• Overdraft Protection — Definition,
  • A service that allows a chequing account to be linked to another savings or line of credit to provide protection against insufficient funds or overdrafts.
• Pre-authorized Payments — Definition,
  • A way to set up a monthly payment to be automatically paid from a bank account.