I am looking to know why they do from a bank standpoint. Is it to minimise fraud, acquire more business perhaps...
2006-10-19 04:48:30 · 13 answers · asked by lunahteekah 1 in Business & Finance ➔ Other - Business & Finance
Most banks make most of thier money from fees, not on loans.
They can really nail you for bounced checks. They will run the check through TWICE and charge you two fees often 25-30 each!
n3
2006-10-19 04:56:12 · answer #1 · answered by N3WJL 5 · 0⤊ 0⤋
Sheer greed. And all it costs the bank is the few minutes it takes the teller to complete the transaction -- the teller is already getting paid, so the profit is almost 100%.
Nothing to do with fraud.
It's working people that pay . . . people that don't have the resources to keep a checking account open and banking executives know that. It's probably cheaper for a working person to pay the fee to the bank than the fee charged by check cashing places.
(Many banks do not charge even if the customer does not have an account there -- it's better customer service policy.)
2006-10-19 05:31:13 · answer #2 · answered by Shaggy 3 · 0⤊ 0⤋
Most American banks do not charge a check-cashing fee. Are you in the U.S.A., if you are change banks. Now all banks will check a fee if you do not have enough money to cover your check in your account, is that what you are talking about.
2006-10-19 04:52:36 · answer #3 · answered by bettyswestbrook 4 · 0⤊ 0⤋
On average, it costs each bank $0.36 to cash a check for a non-customer. So the answer is pure greed and because banks are now beyond the reach of state regulations.
2006-10-21 13:45:29 · answer #4 · answered by nbdinz 1 · 0⤊ 0⤋
The answer is simple.........they want you to open an account with their bank! Customers who have an open account with the bank don't get charged a fee to cash checks.
2006-10-19 04:51:45 · answer #5 · answered by Anonymous · 0⤊ 0⤋
As far as I know, they only charge a check cashing fee to people who don't have an account with them. My best guess is that it's to motivate non-account holders to open an account.
2006-10-19 04:55:16 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Well, they need the extra money to pay that group of people in the other room whose only job is to sit around and think up new ways to squeeze every possible penny out of their costumers through outrageous and ridiculous fees.
2006-10-19 04:51:01 · answer #7 · answered by freyas_kin28 6 · 2⤊ 0⤋
Most of the time, the fees are just to make money.
2006-10-19 04:50:38 · answer #8 · answered by Jordan K 3 · 0⤊ 0⤋
1. generate more business from non accountholders
2. generate income for shareholders
2006-10-19 04:50:13 · answer #9 · answered by moluvsmark 4 · 0⤊ 0⤋
To make money on the transaction.
2006-10-19 04:50:52 · answer #10 · answered by Emery 1 · 0⤊ 0⤋