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

It depends on the product thats being sold. Technically every fee is just a way to extract more money from people, or due to some regulation. But they could also just include the “fee” in the overall price (such as airline fees are required to do).

So it matters which actual fee you’re talking about. “Digital convenience fee” is too broad.

That said, many “convenience fees” are related to costs for a credit card transaction. The vendor often passes that fee onto the consumer. When you see convenience fee, you should immediately think credit card fee, but not always the case