Surcharge Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Surcharge, written in plain English, along with examples of how it is used.

What is Surcharge?

(n) Sur charge is the extra amount charged on any transaction, levy, taxes etc which is not forming part of the original payment, calculation etc but charged additionally for a specific purpose like surcharge levied on income tax for earthquake victims.

History and Meaning of Surcharge

A surcharge is an additional fee or charge that is added to a customer's bill. This fee is charged on top of the original transaction amount for a specific purpose, such as covering the cost of credit card processing fees, fuel costs, or taxes. The surcharge is often a percentage of the original transaction amount, but it can also be a flat rate.

Surcharges have been used for centuries in many industries, including travel, hospitality, and retail. They are often used as a way for businesses to offset the cost of providing a particular service or product. However, surcharges are often controversial, as customers may feel that they are being unfairly charged extra for something that should be included in the original price.

In the context of taxes, a surcharge is an additional tax that is levied on top of the regular tax. These surcharges are typically used to fund specific programs or initiatives, such as education or disaster relief efforts.

Examples of Surcharge

Examples of surcharges include:

  1. Fuel surcharges on airline tickets, which are added to the fare to cover the cost of fuel.

  2. Credit card surcharges, which are added to a customer's bill when they use a credit card to pay for a transaction.

  3. Hotel resort fees, which are additional charges on top of the room rate that cover amenities like pools, fitness centers, and Wi-Fi.

Legal Terms Similar to Surcharge

Related terms to surcharge:

  1. Tax
  2. Levy
  3. Fine
  4. Penalty.