Electronic Deposit Fees Too High?

By Mark Brousseau

During last month’s Payments Capture & Clearing (PCC) Council meeting in Las Vegas, seemingly high bank fees for electronic deposits were cited by several participants as a stumbling block to their organization’s adoption of Check 21. The results of a recent TAWPI Question of the Week shows that PCC Council members aren’t the only ones put off by their bank’s electronic deposit fees.

Sixty-five percent of respondents to the online survey said that their bank’s fees for electronic deposit were “too high.” Conversely, just 14 percent of respondents thought that their bank’s fees were “lower than those of other banks.” Twenty-one percent of respondents said their bank’s electronic deposit fees were “just right” – which would make Goldilocks proud.

What do you think of your bank’s electronic deposit fees? Post your comments below.

Punitive Fees Under Threat

By Mark Brousseau

Bank revenues generated by punitive fees, such as for overdrafts, may be under threat, analysts from New York-based First Manhattan Consulting Group (FMCG) write in the January/February issue BAI Banking Strategies.

FMCG estimates overdraft fees alone total almost $20 billion per year and have been growing quickly as many banks have allowed customers to overdraft in more complicated ways – such as through debit, online bill payment and automated teller machine (ATM) withdrawals.

But FMCG believes the growth of fee revenues will slow as punitive fees begin to draw the attention of Congress and as legislation is adopted that requires banks to notify customers before imposing an overdraft fee.

What do you think? E-mail me at m_brousseau@msn.com.