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Answer:
A service charge is a fee collected to pay for services related to the primary product or service being purchased. The charge is usually added at the time of the transaction.
Many industries collect service charges, including restaurants, banking, and travel and tourism. When collected, these charges may cover services rendered to the consumer, or they may cover administrative or processing costs.
Service charges are paid directly to the company. They are different from tips, which are paid to the employee who renders the service. Paying a tip and the amount is wholly up to the customer.