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This makes me "plenty hot!" (Bank check cashing fee)

Banana

Banana

Diamond Member
I've sold a few items thru eBeigh and the AT For Sale forum. Usually, if I receive a personal check payment from a major bank, I'll just take the check to a branch of that bank to cash it immediately (just in case).

The other day, I went to Bank of America to cash a $35 check. The cashier took my finger prints and all that, and proceeded to hand me $30 in cash. I looked at him stupidly and said "huh?" He explained that if I don't have an account with BoA, then there is a $5 fee for cashing the bank's own check! I politely expressed my indignation, and then reversed the transaction. I asked him what if I wanted to cash a $5 check--no response. So anyway, I feel that this is an outrageous fee, so I'll just go back to the stone age myself.

For sale: AMD Duron 700 MHz CPU for 30 clams. (Bank of America clams not accepted)

1YP
(I really do have the Duron 700MHz CPU for sale)
 
my payroll checks used to be drawn on the bank of sumotomo...they tried to charge me $5 as well...I just raised a "stink" in front of all of thier customers about it...they recinded the charge for me...they also got very tired of seeing my face...besides being "racist" towards "roundeyes" now they are out of business!😀
 


<< I asked him what if I wanted to cash a $5 check--no response. >>


That is pretty funny. But look at it from their perspective. They are providing a service for a non-customer. Time is spent carrying out your transaction (not just the exchange for money). How much would it be to certify that same check? You may consider doing that in the future, or even having the other person certify it.
 


<<

<< I asked him what if I wanted to cash a $5 check--no response. >>


That is pretty funny. But look at it from their perspective. They are providing a service for a non-customer. Time is spent carrying out your transaction (not just the exchange for money). How much would it be to certify that same check? You may consider doing that in the future, or even having the other person certify it. >>

no, actually they are providing the service to their customer, the "checkwriter" and in doing so should cash that check for NO FEE since it's their customer and check this person is accepting payment FROM!!!:disgust:
 
How about taking the check and cashing it at a bank where you're an account holder, avoiding this "plenty hot fee"?

If you're thinking by going to the same issuing bank to cash the check it will be easier/faster/less of a hassle, you're wrong. It's probably not a local check so whether you take a Washington Mutual check to a Bank of America or Washington Mutual, the process will be almost identical.
 


<< How about taking the check and cashing it at a bank where you're an account holder, avoiding this "plenty hot fee"?

If you're thinking by going to the same issuing bank to cash the check it will be easier/faster/less of a hassle, you're wrong. It's probably not a local check so whether you take a Washington Mutual check to a Bank of America or Washington Mutual, the process will be almost identical. >>

and just what should you do if you don't have a bank account Rossman???
OR you want to cash the instrument immediately for the reason that you are transacting business via the internet and you want to make sure that the funds are available immediately w/o waiting for your bank to "clear" the check??? in either instance, I personally think it stinks for the banks to try and rip off their "noncustomers" by charging a "cashing fee" for an instrument their own customers have issued...its just plain theft to me:|
 
Rossman: I take it to the issuing bank so that I get the money in hand immediately. If I deposit it in my account, or cash it at MY bank (which is really the same as depositing the check in my account), then I have to wait for the funds, and run the risk that it may bounce. At least at the issuing bank, I will know immediately whether the check is valid or not.

Pundit: This is a check written by one of the bank's account holders. What else am I supposed to do with the check? What if I don't have any kind of bank account myself? I understand that a bank needs revenue, but charging to cash its own check seems wrong--convince me otherwise! 😀

1YP
 
Problem is when a person sells something on ebay the buyer wants it as soon as possible. If the seller has to run a check through their account it can take up 2 weeks to clear.
It's crazy to charge $5 to cash a check. 50 cents maybe, but $5?!?!? The average teller makes $6 - $10 an hour and it takes about 1 - 2 minutes to process a check cashing. So the average labor cost is about 25 cents. If a bank wants to charge me 50 cents to cash a check fine, but 5 is insane!
 
how does it cost money for a bank to cash a check if it is already their own check? anyways my bank always cashes checks i get up front since i have an account, its not hard just get 100 dollars then open a checking account, unless you don't have a job or that much money then i see where your coming from.
 


<< It's the cost of doing business. It costs money for banks to cash your check. >>



Not $5 dollars. Banks are just like everything else, they make money off of you any way they can. I get charged a fee for cashing a check at my own goddamn bank. $5 for the first check for every 30 days.
 


<< It's the cost of doing business. It costs money for banks to cash your check. >>

BULLSH!T !!! its called added revenue...or in other words, how can we bilk the consumer out of MORE money!!!
 
The $5 charge was a gouge fee that Bank of America likely made up on the spot as evidenced by the teller's lack of reply to your query. You are suppose to be angry about it. He also should've <U>advised you beforehand</U> of the charge, not after. The teller or bank manager should be able to tell if the check was unaltered and if the checkwriter had funds, they should've handed you $35 and thanked you. They can ask you for ID but the fingerprinting? (I've cashed a check at an issuer's bank branch and the most they did I think was call the check writer to verify.)

You may have to ask for money orders from now on. The Post Office charges, what $.75-$1.00 for MO? My CU MO's are free.
 


<<

<<

<< I asked him what if I wanted to cash a $5 check--no response. >>


That is pretty funny. But look at it from their perspective. They are providing a service for a non-customer. Time is spent carrying out your transaction (not just the exchange for money). How much would it be to certify that same check? You may consider doing that in the future, or even having the other person certify it. >>

no, actually they are providing the service to their customer, the "checkwriter" and in doing so should cash that check for NO FEE since it's their customer and check this person is accepting payment FROM!!!:disgust: >>


kamiam, after the payee receives the check, the issuer has completed his part of the transaction. The payee now has a promise on a piece of paper that must be redeemed for cash. The bank that issued the check must now verify the identity of the customer trying to cash the check. This is how the checking system works. You have the option of taking the check to your own bank. If that is not convenient, you still have the option of accepting cash or a CC from the person instead of a check. Nobody is holding a gun to your head to pay that $5.
 
No matter if you present the check to your own bank or go directly to BoA, wouldn't it the workload for BoA always be the same as the check will end up being presented to them and withdrawn from the issuer's account? If so, then I can't see the justification for the $5, other than "because they can".
 


<<

<<

<<

<< I asked him what if I wanted to cash a $5 check--no response. >>


That is pretty funny. But look at it from their perspective. They are providing a service for a non-customer. Time is spent carrying out your transaction (not just the exchange for money). How much would it be to certify that same check? You may consider doing that in the future, or even having the other person certify it. >>

no, actually they are providing the service to their customer, the "checkwriter" and in doing so should cash that check for NO FEE since it's their customer and check this person is accepting payment FROM!!!:disgust: >>


kamiam, after the payee receives the check, the issuer has completed his part of the transaction. The payee now has a promise on a piece of paper that must be redeemed for cash. The bank that issued the check must now verify the identity of the customer trying to cash the check. This is how the checking system works. You have the option of taking the check to your own bank. If that is not convenient, you still have the option of accepting cash or a CC from the person instead of a check. Nobody is holding a gun to your head to pay that $5. >>

B.S.

<< I personally think it stinks for the banks to try and rip off their "noncustomers" by charging a "cashing fee" for an instrument their own customers have issued...its just plain theft to me >>

please see Yo_Ma-Ma's previous post
 


<< and just what should you do if you don't have a bank account Rossman??? >>

Uh...get one?

I've never heard of a bank that DOESN'T charge a fee for cashing checks to payees who don't have an account with them, regardless of where the payer banks. Its been that way for 10 years or more.

I just cash my checks at an Ahab the Arab liquor store up the road, since I've been going there for years he charges me $.50 per $50 cashed ($450 check = $4.50 fee), otherwise its $1.50 per $50 cashed.
 


<<

<< and just what should you do if you don't have a bank account Rossman??? >>

Uh...get one?

I've never heard of a bank that DOESN'T charge a fee for cashing checks to payees who don't have an account with them, regardless of where the payer banks. Its been that way for 10 years or more.

I just cash my checks at an Ahab the Arab liquor store up the road, since I've been going there for years he charges me $.50 per $50 cashed ($450 check = $4.50 fee), otherwise its $1.50 per $50 cashed. >>

I've dealt w/ 4 banks over the last 10 years...only 1 had the audacity to try and charge for cashing an instrument issued from their customers...I personally would be appaled if my bank tried this, and would switch banks immediately
 


<< I've never heard of a bank that DOESN'T charge a fee for cashing checks to payees who don't have an account with them, regardless of where the payer banks. Its been that way for 10 years or more. >>



i can name one... nations bank.... got a check, didn't have an account with them...
got it cashed. no problem... no fee... just finger prints...

TOO BAD BOA now purchased nations bank....

another drawback from bank mergers.... sure we have more atms... but we also have more fees... oh well...
 


<< and I've dealt w/ 4 banks over the last 10 years.. >>

Me, too: First of America, National Bank of Detroit (now called Bank One), Citizen's Bank, and Montrose State Bank...all charged a check cashing fee if you didn't have an account, regardless of the payer's account status. Its the norm in my region.
 
Things have a way of going full circle. It may not happen overnight, just as the merger mania of so many "Big" banks merged into the giant blood suckers they have become now but we could see the rise of the small town personal banks again as many of your ordinary individual citizens turn away from the Big banks. We just recently closed out our Big bank account which charged us $120 year just to have the account plus all kinds of check fees on top of that to a small local town bank that is 100% FREE account and no check fees.

This trend will probably continue and we should see many of these "Big" banks actually topple. Like I said it will take some time and businesses will keep the Big banks going for a while but it is the little people fed up and finally leave them that will break them because of the massive numbers.
 


<< No matter if you present the check to your own bank or go directly to BoA, wouldn't it the workload for BoA always be the same as the check will end up being presented to them and withdrawn from the issuer's account? If so, then I can't see the justification for the $5, other than "because they can". >>


No, because receiving a check from another bank is an automated process.
 
I should point out that my bank (which is in the top 25 largest banks in the USA) does NOT charge such a fee when non-bank customers come in to cash a check from an account at that bank.

1YP
 
dmcowen674,

I agree with your analysis that unfettered mergers in the past two decades led to consumers paying more for less service. It's no coincidence how many billions of dollars commercial banks have made in recent years alone.

However, I have to disagree when you see small banks mounting a serious challenge to the behemoths. While we do see some evidence that players like Washington Mutual who aren't raping their customers are growing, I don't think Smalltown Savings can compete on bottom-line cost with the large banks.

They will have their niche, but I don't see the pendulum swinging back very far.
 
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