If bill-pay transactions cost banks money, why do some accounts waive monthly fees only when a minimum number of transactions are completed?
Banking
Asked by Question Bot06/Dec/20141 answer
1 Answer
F
Faisal Khan
Answered 06/Dec/2014
The more automated the process, the more cheaper it is for the bank and the utility company (for example) to process a bill.
Banks make money when money is being moved and/or being transacted with. When you have transactional activity in your account, it means someone, somewhere is earning revenue, at the forefront is always the bank.
Banks will try to incentivise the entire scenario by making sure that you either pay a monthly fee (if you are below a certain threshold of transaction) or waive the fee if you are above it. When you are above the threshold, this implies that the bank is making a decent earning from the transactions you are posting.
Add to this the incentives the bank receives from the bill-pay partner, which may allow the bank to earn a day's worth of float ont he money collected, etc.
Banks make money when money is being moved and/or being transacted with. When you have transactional activity in your account, it means someone, somewhere is earning revenue, at the forefront is always the bank.
Banks will try to incentivise the entire scenario by making sure that you either pay a monthly fee (if you are below a certain threshold of transaction) or waive the fee if you are above it. When you are above the threshold, this implies that the bank is making a decent earning from the transactions you are posting.
Add to this the incentives the bank receives from the bill-pay partner, which may allow the bank to earn a day's worth of float ont he money collected, etc.