A few weeks ago, my wife (love you, babe!) got a parking ticket. It was $73, which already stings. But when I went online to pay for it, they tacked on a $2 “convenience fee.” My other option was to mail a check like it’s 1998.
At least I paid with a credit card that earns 2% cash back, which helped cancel out part of that annoying charge. But ever since then, I’ve been spotting these little fees everywhere. A $2 fee here, a 2.5% surcharge there.
Here’s where these fees hide, why they exist, and what you can do to fight back.
Where these fees are hiding
Added charges go by all sorts of names — convenience fee, service charge, technology fee, processing fee. But no matter the label, they all mean one thing: You’re paying more than the sticker price.
Here are a few common places you’ll find annoying fees:
- Rent payments made via credit card or third-party platforms
- Utility bills like water, gas, or electricity
- DMV services and vehicle registration renewals
- School tuition or childcare payments
- Paying property taxes with a credit card
- Event or concert tickets (boo, Ticketmaster!)
- Convenience stores and small local shops
- Restaurant “service charges” on your bill
Most of the time, these fees aren’t just businesses trying to squeeze out extra profit. They’re usually passing along the rising cost of doing business — like credit card processing fees or tech platform charges — directly to you.
If you’re gonna pay the fee, at least get something back!
Sometimes the fee is unavoidable. But by using the right type of rewards credit card, you might be able to get some (or all!) of that fee back.
For example, let’s say your bill includes a 2.5% processing fee. If you pay with a card that gives 2% cash back on all purchases, you’ll claw back most of that cost.
It’s not a total wash, but it’s way better than just eating the fee.
Want to come out even further ahead? Use a card that earns more than 2% on specific categories (like utilities or travel). Check out these top credit cards of May 2025 with the highest reward values.
Fees really add up over time
Let’s say your rent is $2,000 per month, and your landlord uses a payment portal that charges a 2.95% convenience fee for card payments.
That’s nearly $60 per month (or $720 per year) in extra costs just to pay online.
Multiply that across a few monthly bills, and you could be paying over $1,000 a year to annoying fees.
How to lower or avoid these sneaky charges
If you’re tired of being nickel-and-dimed, here are a few ways to cut down the damage:
- Look for alternative payment methods — Like using Zelle to pay your rent. Or using cash for a haircut.
- Use a rewards card to offset fees — Even if it doesn’t wipe them out completely, it softens the blow. Cash back cards can be the simplest because you don’t have to deal with complex reward systems.
- Ask about discounts — Some providers offer reduced rates for paying in cash or setting up autopay. A win/win.
- Pay in bulk — If fees are charged per transaction, paying quarterly or annually can save you money.
- Check your statements — Fees aren’t always labeled clearly. Do a quick scan and track them.
The bottom line
Convenience fees and processing charges are everywhere now. Don’t just blindly pay them without thinking through your options.
If you absolutely can’t avoid a surcharge, be smart about how you pay. Check out our list of the best rewards credit cards that can offset processing fees and earn cash back on your bills.
