What is a convenience fee and why is it charged?

What is a convenience fee and why is it charged?

A convenience fee is an extra charge added to your total cost when you choose a specific payment method or booking channel that offers added flexibility or convenience. Here is what you should know:

What is a convenience fee?

  • A convenience fee is a fixed amount or a small percentage added to your purchase when using certain payment methods, such as credit cards, or booking through specific online platforms.

  • It covers the cost of maintaining secure payment systems, digital platforms, and other technology infrastructure required to process your booking quickly and safely.

Why is it charged?  

  • Payment processing: Electronic transactions involve costs such as payment gateway fees and card network charges.

  • Service infrastructure: Running a secure online booking system, mobile app, or call center incurs operational expenses.

  • Booking flexibility: Convenience fees often apply when you choose to pay using faster or more flexible options (such as paying online instead of in person).

When you might see a convenience fee  

  1. Airline or travel site bookings: Many platforms charge a convenience fee for online flight or package bookings.

  2. Event tickets: Convenience fees are common when booking concert, movie, or sports tickets online.

  3. Utility and government services: Some government or utility payments processed online may carry a convenience fee.

Ways you can avoid convenience charges  

  • Alternate channels: In some cases, booking through an offline channel (such as a ticket counter or physical office) may avoid the fee.

  • Different payment methods: Some services waive the convenience fee for payments made via debit cards, net banking, or certain wallets.

  • Promotions: Look out for offers where convenience fees are waived during special promotions or sales periods.

Understanding why a convenience fee is charged helps you make informed decisions about your payment method and booking channel, and avoid surprises at checkout.

 


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