Greed

[melissa3]

No, I mean, without a fee. I've never heard of being charged for cashing a check at a bank its drawn on. I can remember doing this lots of times without a fee...AND I got a free lollipop! =)

I live in MA, I wonder if its different for different states? Weird....

 

[Aislinn]

A lot of banks charge all kinds of fees for services provided to non-members. It's one of the ways they cover costs, so they don't have to charge fees to members with accounts. It's very similar to ATM fees. If you use your bank's ATM there's no charge, but if you use a different ATM, there may be a fee from both your bank and the bank which owns the ATM.

 

[brads]

...AND I got a free lollipop! =)

I live in MA, I wonder if its different for different states? Weird....

A free lollipop too!!! I gotta get another bank. :duh:

 

[brads]

A lot of banks charge all kinds of fees for services provided to non-members. It's one of the ways they cover costs, so they don't have to charge fees to members with accounts. It's very similar to ATM fees. If you use your bank's ATM there's no charge, but if you use a different ATM, there may be a fee from both your bank and the bank which owns the ATM.

That's all true but here's the way I look at it. Let's say you owed me $5 dollars and wrote me a check. I then took your check to your bank to cash it. However, I was not a member of your bank so they charged me $5 dollars to cash your check. I end up with nothing. Now, if you went into your bank, wrote a check for $5 dollars, recieved the money and gave it to me, there would be no charge right? And since it's an identical outcome if I take your check into your bank and cash it, why do they charge me a fee? (Also, why don't they charge a fee when I deposit your check in my bank? A lot more messin' around there.) The only answer I can see is "Because they can." Just plain old greed IMO.

 

[Aislinn]

That's all true but here's the way I look at it. Let's say you owed me $5 dollars and wrote me a check. I then took your check to your bank to cash it. However, I was not a member of your bank so they charged me $5 dollars to cash your check. I end up with nothing. Now, if you went into your bank, wrote a check for $5 dollars, recieved the money and gave it to me, there would be no charge right? And since it's an identical outcome if I take your check into your bank and cash it, why do they charge me a fee? (Also, why don't they charge a fee when I deposit your check in my bank? A lot more messin' around there.) The only answer I can see is "Because they can." Just plain old greed IMO.

All of those fees can and will be charged to you because you are performing said transactions at a bank with which you do not hold an account. To the bank, it doesn't matter whether the check is business or personal. All that matters to them is that you do not hold an account there, and therefore they charge you a service fee. A bank is still a business, and like all businesses, they must cover their operating costs somehow. Look at it from the perspective of the customers who DO have accounts at that bank - why should they receive less interest on their accounts or pay fees for things to cover the costs of non-members performing transactions?

As far as a check from that bank being cashed by you versus the person who wrote it, again, all the bank cares about is that account holders have the privilege of free transactions, and non-account holders do not. Generally speaking, most people with bank accounts keep money in their accounts. That money, regardless what type of account it's in, earns the bank interest, and makes the bank money. Not usually a whole lot of money, as most people don't keep large floating balances in their accounts, but generally enough to make a significant contribution toward operating costs. People without accounts at that bank contribute absolutely nothing toward the operating costs, so why should the bank perform free services for them that they will then need to charge to the customers who DO earn them money?

It has nothing to do with what the sum total of the final withdrawal, and everything to do with providing free services to those who hold an account and keep money at that bank. They don't charge you a fee when you deposit their check in your OWN bank, because the actions on their end involve only the withdrawal made by the account holder, by way of writing the check. In that scenario, they are not involved in the cashing or depositing of the check on your part, because your bank is providing that part of the service.

 

[Squawkbert]

It's BS, but true - lots of banks are charging non-account holders for check cashing.

If I ever have my own business, I'll be choosing a bank that does not do that (but I'll more likely be worried w/ avoiding excessive PayPal fees for CC customers).

 

[brads]

... They don't charge you a fee when you deposit their check in your OWN bank, because the actions on their end involve only the withdrawal made by the account holder, by way of writing the check... .

Actually, you made my point. The money is withdrawn by the account holder by way of writing a check. Whether or not they send the money electronically or just hand it to me makes no difference. On their end it's exactly the same. The check comes in and the money goes out.

Now before I start a war I just want to say that every word you wrote is true. I'm just saying it sucks. That and I'm old. I remember a time not long ago when banks didn't charge fees to anybody who came in to cash a check. Member or not.