How can banks charge a fee to cash a check that is one of their own accounts?

I received a refund from an auto repair business. I went to the bank the check was drawn on to cash it and they wanted to charge me a $5.00 fee because I am not one of their account holders. I could have deposited into my account, but I wanted to make sure it was good and not an NSF. I don't understand how they can charge to cash one their own checks. What about a person who has a paycheck and they need every penny. Why should they pay a penalty to have cash in hand after a week of hard work? I also had to provide 2 forms of ID and a thumb print, which I can live with. But, charging folks 5.00???

How can banks charge a fee to cash a check that is one of their own accounts?
You should be more concerned about your personal ID information and a fingerprint floating about for all to see than losing $5 for the service charge. $5 is a small price to pay for the piece of mind of a check not bouncing.
Reply:yeah its lame,they started making people open accounts at the bank our checks are drawn from too,or charge 2 bucks,i don't use that bank anymore
Reply:Todays society expect you to obtain a bank account. Over the course of hundred years this is a non negotiable. You work, get a pay check....you need an account some where.


I have worked for several banks. First of all banks are not check cashing places. They are financial institutions. Banks charge a fee for profit. Think about it. As a courtesy they will cash a personal or business check for you, only up to a certain amount. This is a courtesy. Banks like any other business is in this for profit.


Again I say think about it.


It actually makes a lot of sense if you think about it.


Imagine this is your business. Banks do not make money on deposits, or the number of accounts they maintain....they make their money on fees and charges. A bank will hold your money in a personal account or provide a line of credit but until you get a fee or draw on that line of credit the bank is not making any money.


If this was your business would you just cash checks for people without charging a fee? It is just like having a starter business. Say a lemonade stand. At first you might give it away free but then you notice the demand of your product. So of course you start to charge a minimal fee.


Get it now? It is all about supply and demand.


There are ways to get around this. Open a bank account. Deposit the check into your account. I know you mentioned you did not know if the check was good. You could have easily asked the bank for authenticity. They will gladly tell you if a check is cashable or not. Once you found out then make the deposit into your personal account.


Also, you might not have known this, if make a deposit into your account and the check is returned as a NSF, the owner of the check is responsible for your bank fees. They wrote you a bad check not you.


I know it is a risk but the check owner would be responsible for your account fees.


Or just check authenticity first then make the deposit. Or if you would have came into my bank with that check I would have asked you to open an account with us to avoid the check fee. This is how the bank gets new customers. So just try to understand the game. Business is all about game. Everyone is in it to make money.


You know you would too!!!!!!!!!!!!!
Reply:Banks can charge fees for anything. I understand your reason (my Uncle does this too), but it probably amounts to more hands-on processing time and tracking when there isn't an account to attach to.
Reply:Usually when you don't have an account with any particular bank and you cash a check drawn on one of their clients they usually charge a fee. This is the way banks make money off of people who do not have an account, they hope that a person will open an account with them so that they can have a new customer. By doing this gains them a new deposit, they make some more money to lend out, and the fee for them to cash a non customer makes them some money! I know it sounds crazy but that is just the reality, imagine if you went to one of those check cashing stores!
Reply:Banks charge fees although that is not where the bulk of their profits come from. Banks make their money by lending it at a higher interest rate than the rate at which they give for savings accounts and CD's and such. Credit Unions operate in much the same way as banks, except they are non-profit and less likely to charge fees for things like that.