Nominal Fee

A small amount paid as a charge for a service is called a nominal fee. The amount can be taken as a flat rate for processing an application form or for a range of costs associated with a transaction.

It can be an amount associated with the insurance policy for faster processing or for taking certain special financial services.

For example- Banks take such an amount for fund transfer or for offering higher security protection to your account-related activities, or you pay it as commodities brokerage charges, interbank exchange rate, etc.  Sometimes, the nominal fee indicates a small payment for a high-responsibility job.

Such a fee can be taken by executives working for government institutions where they take a nominal salary for their work, or a CEO may take $1 a year along with bonuses and stock options – which is a kind of adjusted remuneration agreed upon by the involved parties.

Sometimes, a court settlement is made from a small amount like $1 to reduce the penalty for one party.