Surcharges and Convenience Fees
What is difference between a surcharge and convenience fee ?
A surcharge and a convenience fee are both additional charges applied to a transaction, but they are typically used in different contexts and for different purposes.
- Surcharge:
- A surcharge is an extra fee that is added to the total cost of a transaction as a percentage of the transaction amount. It is often used in the context of credit card payments. Merchants may impose a surcharge to cover the cost of processing credit card transactions, which can be significant due to the fees charged by credit card companies. However, the legality and regulations around surcharges vary by region and jurisdiction. Some places allow surcharges, while others have restrictions or outright bans on them.
- Convenience Fee:
A convenience fee is a charge imposed for the convenience of a particular payment method or service. This fee is generally fixed and is not based on a percentage of the transaction amount. Convenience fees are often applied when customers choose to use a specific payment method or service that is considered more convenient or offers additional benefits. For example, if you're purchasing tickets online and opt for a "print-at-home" option rather than picking up physical tickets, you might be charged a convenience fee for the convenience of printing your own tickets.
In summary, the main differences between a surcharge and a convenience fee are:
- Calculation Basis:
- Surcharge: Typically calculated as a percentage of the transaction amount.
- Convenience Fee: Generally a fixed amount, not tied to the transaction amount.
- Purpose:
- Surcharge: Often applied to cover processing costs, especially in credit card transactions.
- Convenience Fee: Charged for the convenience of using a specific payment method or service.
- Applicability:
- Surcharge: Commonly associated with credit card transactions and may have legal considerations.
- Convenience Fee: Applied for various services to provide added convenience to customers.
AC Trash Hauling does not believe in either of these to items. Let's face the reality of our current economy. We are rapidly approaching a "CASHLESS" economy. Collectively we tend to pay for items with a debit or credit card. It doesn't matter what you buy.
Be honest with yourself, don't you think that the vendor has included a cost for the "fees" that they pay for the ability to accept credit/debit cards? Of course they do.
Processing fees are a variable, but hover close to 3%. As a vendor, I would rather receive $100 and pay $3 processing fee, as opposed to not making the sale. Trust me those few dollars get incorporated into the overall cost. Sadly, the customer is more than paying the processing fee with their interest on the credit card.
When it comes to "Service Charges", they seem to get added and never removed. Think about fuel service charges. The cost for service increases, as does the "Service Charge". The $5 fuel charge becomes $8, and then $10, etc.
AC Trash Hauling does not and will not add a "Service Charge". We would rather be upfront and increase our prices.
We look forward to your comments about these two items. Feel free to comment.
Just a reminder, we provide our trash hauling services to the following communities and surrounding areas.
Noblesville, Carmel, Fishers, Westfield, Sheridan, Zionsville, Broad Ripple, Cicero, Castleton, Lawrence, Tipton, McCordsville, Fortville, Greenfield, and more upon request.
