We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Accounting

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Is a Fee Structure?

Mary McMahon
By
Updated: May 16, 2024
Views: 7,257
Share

A fee structure is a detailed disclosure of fees associated with products and services offered by an organization. Some companies are legally required to provide this information on request to current and prospective clients. In other cases, it may be offered as a convenience to allow people to compare rates, determine the cost of an activity, or plan ahead. In finance and investing, fee structures are used at locations like banks, brokerages, and financial management firms, and they are usually required by law.

Pamphlets with fee structure information should indicate when they were published to allow the reader to determine if the information is current. All fees charged in association with financial activities are disclosed; at a bank, for example, this might include monthly checking, non-network cash withdrawals, wire transfers, and loan origination. For certain kinds of financial products, the contract includes a fee structure and this information should be reviewed carefully before signing.

Financial managers and brokers also need to provide fee structure information. This can include a maintenance fee to keep an account open, costs associated with executing trades, and fees for reproducing documents. People may need to pay to open or close their accounts, or if their balance dips below a certain amount. Likewise, inactivity can be billable at some institutions.

Companies can periodically update their fees in response to changing market conditions like an increased cost of doing business. They may need to provide legal warning before they do so, allowing people to close or transfer accounts without penalty if they do not agree to the new fees. Any debts may need to be paid off in full in order to do so; there may be other restrictions as well, such as the need to close out accounts within a set period of time after notification to avoid the penalties.

If a billing dispute arises because a bill doesn’t match the fee structure, there are a number of options for resolving it. One choice is to negotiate directly with the company to determine if it is possible to adjust the bill. In other instances, the problem can be reported to a professional organization or regulatory agency, which can assist with the resolution process and negotiate a settlement that is acceptable to both parties. Companies that receive frequent complaints may be targeted for investigations to determine if they are advertising in misleading ways or bilking customers with fraudulent billing activities.

Share
SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Mary McMahon
By Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a SmartCapitalMind researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Discussion Comments
Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a...

Learn more
Share
https://www.smartcapitalmind.com/what-is-a-fee-structure.htm
Copy this link
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.