pass-through costs
Third-party expenses that an agency pays on behalf of a client and bills onward, such as media, printing or software licenses.
Definition
Pass-through costs are expenses that go through the agency's books but belong to the client's project: media placements, stock images, travel, printing, platform fees and subcontractors. They are usually separate from the agency's own fee. Contracts should say what counts, whether approval is needed above a threshold, whether a handling charge applies, and how receipts are shared. Clear rules prevent surprises on invoices. Ask for itemized receipts at the end of each month so the costs can be reconciled against the original estimate without delay.
In a sentence
Printing was a pass-through cost billed at actual price.
Costs above a set limit needed written approval first.
