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Home › Pay › Nickel-and-dime tactics › Fees that cost them nothing
Prices that hide or grow

Fees for things that cost the business almost nothing

Some fees are named for a service, but the service costs the business very little, or even saves them money. A convenience fee for paying online, a fee for a paper bill, or an admin fee for processing your own payment can add up over a year. Knowing which fees you can avoid is an easy way to save.

Where you’ll see it

Convenience fees for paying onlineSome billers charge a convenience fee to pay online or by phone, even though automated payments often cost them less to handle than paper checks sent through the mail.
Fees for a paper billSome phone, internet, and utility companies charge a monthly fee if you want a paper statement mailed to you. This can hit older adults who do not use online accounts the hardest.
Pay-by-phone feesSome companies charge a fee to make a payment by talking to a live agent, while the same payment online is free. The fee pushes you to the cheaper option for them.
Administrative and processing feesSome gyms, landlords, and service companies add an annual admin or processing fee with no clear service attached. The name sounds official, but it often works like a price increase.
Printing your own ticket feesSome ticket and travel sellers have charged a fee to print a ticket at home or to receive it on your phone. You do the printing, and the delivery is a simple digital file.
Account maintenance feesSome banks and prepaid cards charge a monthly maintenance fee unless you meet a balance or deposit rule. Many other accounts offer the same basic service with no monthly fee.

What it really costs them

Many of these fees charge you for things that cost the business very little. A paper bill costs some money for paper and postage, but online payments and digital tickets are mostly automated. In some cases, the cheaper method for them is the one they charge you extra to use.

Payment processing does have real costs, and card networks charge businesses fees on each card sale. That is fair to recognize. The issue is fees that are not clearly explained, are larger than the real cost, or are named to sound like a required service when they are really just extra profit.

How to spot it

  • The fee is named convenience, processing, service, admin, or maintenance with no clear service attached.
  • One payment method is free while another, equally easy, costs extra.
  • A paper statement or mailed bill has a monthly charge.
  • A yearly admin fee appears on a membership or lease.
  • The fee only shows up on your statement, not when you signed up.

What you can do

  1. Read your bills and look for fees with vague names.
  2. Ask what each fee is for and whether you can avoid it.
  3. Switch to a free payment method, such as automatic bank payment, if it suits you.
  4. Ask to have paper bill fees waived, especially for older relatives who need paper.
  5. Shop for providers and accounts without monthly or admin fees.
  6. Report unexplained or misleading fees to the FTC, CFPB for banking, or your state attorney general.
Things you can say:
  • “What exactly is this fee for?”
  • “Is there a way to pay that does not have a fee?”
  • “Can you waive the paper bill fee for me?”

Rules and your rights

Most of these fees are legal if clearly disclosed. The FTC's Rule on Unfair or Deceptive Fees, in effect since May 12, 2025, requires live-event ticket sellers and short-term lodging providers to include required fees in the upfront price. California's SB 478 and Minnesota's price transparency law require most businesses in those states to include mandatory fees in advertised prices. California's law generally does not cover credit card fees or optional services.

Related common problems

Related guides

Common questions

Why do companies charge a convenience fee to pay a bill?

Companies say convenience fees cover the cost of processing online, phone, or card payments. Some payment methods do carry real costs, but others are cheap for the company to handle. Ask whether there is a free way to pay, such as automatic bank payment, and use it if it fits your needs.

Can I avoid a paper bill fee?

Often, yes. You can switch to online bills, or call and ask the company to waive the fee. Some companies will waive it for older adults or people without internet access. If paper bills help you or a relative keep track of money, it is worth asking.

Are administrative fees legal?

Generally, yes, if they are clearly disclosed when you sign up. But a fee with a vague name that was not explained, or that appears without warning, may be unfair or deceptive. Ask what it is for, ask to remove it, and report it if the business will not explain it.

Had this happen? Sharing what you were charged helps others spot it.

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Sources: FTC: What the Rule on Unfair or Deceptive Fees means for you ↗ · California Attorney General: SB 478 Hidden Fees ↗ · Minnesota Attorney General: Price Transparency Law FAQ ↗

General consumer information, not legal or financial advice. Practices and prices change; check the business’s current terms. AblePro has no relationship with any company named here.