When finalizing a transaction – whether online or in person — with a credit card, it’s likely you’ve come across an additional fee referred to as a “convenience fee”.

In a typical cash transaction, additional fees are rarely involved. You simply pay for the product or service(s) rendered and that’s the end of it. 

However, when using a credit card, some companies and individuals who sell products or services will opt to add a convenience fee to the transaction. But why? In this article, we’ll help you understand what convenience fees are and why they are added to some of your transactions.

What Are Convenience Fees?

Convenience fees are charges that are passed onto customers for the privilege of paying for a product or service using an alternative payment method that is not standard for a business.

A business that typically accepts cash or checks for transactions but also offers credit card payments for the sake of convenience might charge these additional fees for that convenience.


While you may be paying an additional charge, convenience fees have a few benefits that may make the extra cost worth it for you. These include:

  • Quicker transactions.
  • More alternative payment methods available such as credit cards.
  • Earn credit card points.
  • Auto-pay for most recurring online services.
  • Eliminates the need for cash or checks; both of which are becoming less common forms of payment.


Convenience fees have become commonplace for businesses around the world and give you the privilege of paying for products and services with non-standard payment methods.

You may be paying a bit more per transaction, but the ability to complete transactions quickly and efficiently without the need for cash or checks is oftentimes worth it for customers. 

Every business is different though, so be sure to check if the company you’re purchasing products or services from charges convenience fees and how much those fees are before you complete the transaction.

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