Service charge

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(Redirected from SERVICE CHARGE)

A service charge is a fee added to a customer's bill. The purpose of a service charge often depends on the nature of the product and corresponding service provided. Examples of why this fee is charged are: travel time expenses, truck rental fees, liability and workers' compensation insurance fees, and planning fees.

In the context of banquets and restaurants serving a large group of people, a service charge is often added to the price of food and drink as a mandatory gratuity to ensure that the waitstaff is adeqately compensated.

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