Can someone explain the purpose of digital convenience fees?

Question

I would’ve thought that makes it easier on all parties. Or is this just another way to suck money out of people?

In: 34

Answer 1

This isn’t always the case, but a lot of times a third-party is likely involved ordering something online, and that’s essentially their fee for processing the transaction. In your example, Chipotle uses DoorDash to fulfill delivery orders, so that’s their cut. Think of Fandango selling movie tickets. If they sell at the same price as the theater directly, that “convenience fee” is actually just the cost to use their service.

Again, not true in 100% of cases where that fee is present, but I would say it’s the vast majority of them.