A cutting fee is what some cigar lounges, bars, and restaurants charge when a guest smokes a cigar that was not bought on the premises. It works like corkage for wine: the lounge earns its living partly from selling cigars from its own humidor, and the fee covers a seat for someone who brought their own. Policies vary widely. Some places charge a fee, some don't allow outside cigars at all, and some allow them freely, so ask before you light up.
Also called: corkage