What are Fees?

Learn about fees with Aishwarya Rai!
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Albela 2001

Case breakdown: Movie Albela

The scene that you just saw shows Sonia (played by Aishwarya Rai) giving fees to Tony (played by Govinda). Tony is a tour guide while Sonia is a client. Although Tony isn’t accepting the fees for his services as a tour guide. She gives him the fees saying that these are for the hotel stay.

In this blog, Learning Perspectives will explore the meaning of fees.

What are fees?

Fees are a fixed price charged for the services offered. Fees can be applied to many parameters. These can be in the form of commission, penalties, charges, etc. Fees are generally used in transactional relationships. It is seen when professionals provide their services, a fee is charged for their expertise. It is many times called a service charge, a surcharge that is added to customers’ bills.

Types of Fees:

Exam Fees:
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Many times, fees are charged for conducting exams as well. If an individual has to appear for an exam, he/she has to pay fees to the entity that is conducting or arranging the exam. Similar to the scene that you saw above.

This boy is in dire need of money and he robs a woman. He does so because he wants to appear for an exam. ACP Ranjeet Singh (played by Amrish Puri) pays his exam fee of Rs. 1,200 and lets him go.

School fees are the annual payments that are made to the institution or the education provider. This includes the uniform fees, books, and tuition fees of the student. If a student is enrolled in boarding school, then the fees incorporate the boarding, living, and food expenses of the child too. Documentation for this includes filling out many forms by the parents. These payments made by the parents allow the school to maintain infrastructure and pay teachers.

Service Fees:

This fee is generally charged and added to a customer’s bill. This depends on the product or the service that is offered. Examples can include insurance fees, rentals, and travel time expenses.

Banking Fees:

Bank fees are associated with penalties that are generally charged for non-maintenance. These could be related to maintenance of minimum bank balance, ATM usage, and unauthorized overdraft fees. There are regular bank charges too that are charged to the customer for maintenance of the account. When customers look to invest in securities, they are met with fees for margin trading. If a customer invests in mutual funds then he will encounter management fees.

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Understand Fees with a Video
Customer Service Fees:

This fee relates to fees charged for documentation, demand charge, commodity charge, etc. It relates to the processing fee charged, credit card fee, or modification fee. Example: Dish TV, Airtel, TATA sky, etc all charge us with pay-per-view for the channel’s customer opts to watch. This falls under customer service fees.

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