Surcharge Definition

A surcharge is an added charge or fee. Surcharges often are assessed on loans and usually are not related to the loan amount. Surcharges are often "disguised" as convenience fees or expedition fees. Technically, a surcharge is a fee added on top of a charge. For example, a payday lender might assess a $10 loan application charge and then offer a $5 expedition surcharge in order to process the application in less than one hour. Or, a home repair service might assess a "Sunday surcharge" to make an emergency house call over the weekend.