Bank Check Cashing Fees

Why do banks charge a fee for cashing their own check? Welcome to the new chapter of banking. Banks are allowed to charge what they call a bank check processing fee. A bank check processing fee occurs when you do not have an account with the bank.

Some banks are charging up to $6.00 dollars in check cashing fees regardless of the amount on the check. Consumer groups say it's a small fee but a glaring example of how bank fees are becoming out of control. The U.S. Public Interest group is fighting against banks charging a fee to cash its own checks. What's behind the fee? Banks would like you to think its protection.

The bank check processing fee is wrong because the bank charges this fee as a protection from overdrawn accounts.  However, since the check is one of their own checks, a simple balance review could solve that problem;

and that does not cost the bank $6.00 dollars.  Why are banks charging this fee now?  Banks are mainly charging this fee to replace other fees that have been banned.

The new bank check processing fees was brought about because -- overdraft debit fees were banned by the Federal government. 

The loop whole in this fee is to have an account with the bank you are cashing the check with.

You can avoid the new bank check processing fee by going to your own bank and depositing the check, or by opening a free checking account with the same bank as the payee of the check.  In the case the payee is your

employer it may be a smart move.  If you are one of the Americans who can not open a bank account, do your homework.  Research the fees of the bank and local checking cashing office and choose the lower.