GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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26% - Moderately

Service Charge


Synonyms:account, cost, fee, levy, toll
Acronyms &
abbreviations:
SC
Notes:Bank account transaction code.
Filed Under: bank statements, financial-banking
Tags: banking
 
Broadly associated with: [BMO Financial Group]
Narrowly associated with: [BMO Bank of Montreal]

Definition of service charge (SC)

service charge (SC)
1. Fees charged to customers for specific services or as a penalty for not meeting certain requirements such as insufficient funds in a chequing account.

Related Terms and Acronyms:

  • account agreement   An agreement that you sign and which lists your rights and responsibilities and the bank's rights and responsibilities for the bank account.
  • annual administrative fee   An annual (yearly) fee charged for the administration of a service.
  • atm access fee   Fee charged in addition to the individual account fees for an account holder to gain access to the ATM system. Can be monthly, weekly, or annual fee. See also "Automated Teller Machine."
  • atm card fee   This is not a debit card fee. It can be an annual or monthly fee charged on top of individual account fees to obtain an ATM card. The fee may also be charged per card or per account. For example, if an account is held jointly, the bank may charge for the second person to hold a card or it may charge one fee for all the cards on an account.
  • automatic payment   An arrangement that authorizes periodic withdrawals to be made from a chequing or savings account to pay bills, usually regular monthly payments such as for rent or mortgages.
  • early withdrawal penalty   A depositor forfeits interest or is charged a service fee for either withdrawing funds or closing a time deposit before the maturity date.
  • flat fee   A fixed charge that a broker requests instead of a commission.
  • minimum average balance to avoid fees   The balance in the account from day-to-day must average this amount when calculated. If the account balance falls below this amount you will be subject to the monthly charge and/or per usage transaction charges.
  • overdraft protection   A service that allows a chequing account to be linked to another savings or line of credit to provide protection against insufficient funds or overdrafts.
  • pre-authorized payments   A way to set up a monthly payment to be automatically paid from a bank account.

Broad and Narrow Associations

[BMO Bank of Montreal]
  • Bank of Montreal (BMO) — Company Est.1817, Canada-wide, Very Important
      ➥  Canada's very first bank. A Canadian NHA approved mortgage lender that offers all lending types, including both residential single family and multi-unit mortgages, and reverse mortgages.
  • cheque (CK)Definition   A written order for payment of a certain amount of money.
      ➥  Bank account transaction code.
  • certified cheque (CC)Definition   A cheque that a bank guarantees will clear.
  • foreign exchange (F/X, FE, FOREX, FX)Definition   Various instruments used to settle payments for transactions between individuals or organizations using different currencies (e.g., notes, cheques, etc.).
  • online debit refund (OV) — Acronym, Low Relevance
[BMO Financial Group]
  • Bank of Montreal (BMO) — Company Est.1817, Canada-wide, Very Important
      ➥  Canada's very first bank. A Canadian NHA approved mortgage lender that offers all lending types, including both residential single family and multi-unit mortgages, and reverse mortgages.
  • cheque (CK)Definition   A written order for payment of a certain amount of money.
      ➥  Bank account transaction code.
  • foreign exchange (F/X, FE, FOREX, FX)Definition   Various instruments used to settle payments for transactions between individuals or organizations using different currencies (e.g., notes, cheques, etc.).
  • certified cheque (CC)Definition   A cheque that a bank guarantees will clear.
  • Bank of Montreal Mortgage Corporation (BMMC) — Company, Canada-wide
      ➥  A Canadian NHA approved mortgage lender that offers all lending types, including both residential single family and multi-unit mortgages.

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