Why is there no seamless, unified money-transfer method between Canada and the U.S.?
Compliance
Asked by Question Bot08/Jun/20141 answer
1 Answer
F
Faisal Khan
Answered 08/Jun/2014
(a) European Banking is inherently a little different from US and/or Canadian banking when it comes to retail banking. EU customers are more weary of paying any sorts of fees which they deem ought not to be there, hence, most banks have waived such fees on internal transfer, X amount of free cheques per month without any %age-levied fees, etc.
(b) Asking the clerks, was just a bad idea. They have no inkling on this. This is true anywhere in the world. That's like asking a grocery teller on the economics of distribution. Oil and Water mix.
(c) EU transactions are more geared on a flat fees charge to process. The same is also true for US and Canada, except the settlement times are much longer.
To answer your question: Yes, the current setup does earn banks tons of fees (emphasis supplied).
I don't have the source with me right now, but in the US alone, interest/money earned from over-night lending on cheques waiting to be cleared, earns banks to the massive tune of something like US$ 30-40 Billion per year. Lesson learned... it pays to hold on to your money and charge you for it.
(b) Asking the clerks, was just a bad idea. They have no inkling on this. This is true anywhere in the world. That's like asking a grocery teller on the economics of distribution. Oil and Water mix.
(c) EU transactions are more geared on a flat fees charge to process. The same is also true for US and Canada, except the settlement times are much longer.
To answer your question: Yes, the current setup does earn banks tons of fees (emphasis supplied).
I don't have the source with me right now, but in the US alone, interest/money earned from over-night lending on cheques waiting to be cleared, earns banks to the massive tune of something like US$ 30-40 Billion per year. Lesson learned... it pays to hold on to your money and charge you for it.