Nuisance fees are charges used by companies to penalize certain behaviors, usually through setting fees that are disproportionate to the actual cost associated with the service. Common examples of nuisance fees include late payment, inactivity, low balance, and ATM fees, all used by banks to disincentivize certain actions.
Nuisance fees are distinct from junk fees, which are unfair or deceptive fees charged for goods or services with no added value for the consumer. While some nuisance fees may also be junk fees, not all nuisance fees fall into the category.
[Last updated in August of 2023 by the Wex Definitions Team]