An incidental fee is a charge that organizations use to finance certain services or as an automatic payment, such as those collected by schools or hotels. Schools use the fee to fund projects, while hotels use it as a hold on funds for security. Airlines and banks also charge incidental fees.
An incidental fee is a set amount that may be charged as a hedge against some type of anticipated shortfall in the payment of a service, by certain organizations as a means to finance certain services, or as an automatic payment that various schools collect from students. This type of fee can be used by a school for various purposes, and students are expected to pay the incidental fee as part of their tuition. The fee may also be charged as an automatic component of the total fee charged to a customer for other services.
Schools generally expect their students to pay this fee so that the school can fund certain projects that would suffer in some way without these funds. For example, the fee could be used to finance health-related services, such as counseling. The fee can also be used to fund the school’s recreation center, as well as other services used by the general school community that may not have been an easy task without the charge of an incidental fee. Different schools have their own exact charges and calculations by which they arrive at the final figure.
Another example of an incidental fee is the type that customers are charged when they book hotels. Since most hotels require some type of credit or debit card to book guests, it is easier for them to charge customers this type of fee. The incidental fee in this case is in the form of a hold that is placed on a certain amount of funds charged to the guest’s card, in addition to the normal deduction or payment for the stay. As such, the incidental fee means that the hotel will hold the money, through the bank, as security for any damages or other incidents that may occur during the guest’s stay. If the guest checks out without incident, the money will be credited back to the guest’s account after the bank releases its hold on the funds.
Even airlines and banks charge their customers some form of these fees. In the case of banks, the fee is the interest charged to customers to grant them loans. For airlines, such fees include items such as money charged for checking baggage and also money a customer is charged when the date or time of a previously booked flight changes.
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