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Advance fee: meaning, definitions and examples

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advance fee

[ ədˈvɑːns fiː ]

Noun

^{Context #1 | Noun}

financial

A fee that is paid upfront before receiving a service or product. It is often associated with scams where individuals are asked to pay a fee in advance with the promise of a greater benefit later.

Synonyms

prepayment, upfront fee.

Which Synonym Should You Choose?

Word	Description / Examples
advance fee	Used when describing a payment made before receiving a service or product, often in the context of loans, contracts, or financial services. It can sometimes have a negative connotation, suggesting the possibility of a scam. He was required to pay an advance fee before the loan could be processed. Scammers often demand an advance fee with a promise of later rewards.
upfront fee	Refers to an initial payment made before any services are rendered, commonly used in business deals and service agreements. It emphasizes the timing of the fee, suggesting it is paid at the beginning. The consultant required an upfront fee before starting the project. Customers are warned about companies that ask for a large upfront fee without guarantees.
prepayment	Commonly used when referring to payments made before the due date, especially in the context of utility bills, mortgages, or large purchases. By making a prepayment, she was able to reduce the overall interest on her mortgage. The company offered a discount for prepayment of the annual service fee.

Word

Description / Examples

advance fee

Used when describing a payment made before receiving a service or product, often in the context of loans, contracts, or financial services. It can sometimes have a negative connotation, suggesting the possibility of a scam.

He was required to pay an advance fee before the loan could be processed.
Scammers often demand an advance fee with a promise of later rewards.

upfront fee

Refers to an initial payment made before any services are rendered, commonly used in business deals and service agreements. It emphasizes the timing of the fee, suggesting it is paid at the beginning.

The consultant required an upfront fee before starting the project.
Customers are warned about companies that ask for a large upfront fee without guarantees.

prepayment

Commonly used when referring to payments made before the due date, especially in the context of utility bills, mortgages, or large purchases.

By making a prepayment, she was able to reduce the overall interest on her mortgage.
The company offered a discount for prepayment of the annual service fee.

Examples of usage

Be cautious of any company that asks for an advance fee before providing their services.
Many scams involve convincing victims to pay an advance fee in exchange for a larger sum of money later.

Translations

Translations of the word "advance fee" in other languages:

🇵🇹 taxa antecipada

🇮🇳 अग्रिम शुल्क

🇩🇪 Vorausgebühr

🇮🇩 biaya di muka

🇺🇦 попередній платіж

🇵🇱 opłata z góry

🇯🇵 前払い料金

🇫🇷 frais d'avance

🇪🇸 pago adelantado

🇹🇷 peşin ücret

🇰🇷 선불 요금

🇸🇦 رسوم مسبقة الدفع

🇨🇿 předběžný poplatek

🇸🇰 záloha

🇨🇳 预付款

🇸🇮 predplačilo

🇮🇸 fyrirframgreiðsla

🇰🇿 алдын ала төлем

🇬🇪 წინასწარი გადასახადი

🇦🇿 avans ödənişi

🇲🇽 pago por adelantado

Etymology

The term 'advance fee' originated in the financial industry to describe a payment made before receiving a service or product. Over time, it has also become associated with fraudulent schemes and scams where individuals are tricked into paying a fee upfront with the promise of a larger benefit later. These scams have been around for centuries, evolving with technology to include online and email scams. The concept of advance fees has also been used in legitimate business transactions, such as in real estate or legal services, where a payment is required before the completion of a service.