Well, would you believe it!

I have an account with X-O with various ETFs in. Recently, a dividend came in from my Vanguard Developed Europe ex UK ETF which is denominated in euros. X-O's bank converted it to £s and it was paid into my X-O account. So far so good and that is what has happened on all other dividends on all other ETFs. (VERX is new to me - so first dividend.)

On this occasion, a few days later a Bank Fee popped up on my account. When questioned, X-O told me that this was charged because the Registrar (for that ETF) used a cheque to pay the dividend and that the bank makes a charge for cheques (but not for BACs or whatever is the normal thing). X-O merely pass the charge along.

Now we are not talking about much money, the fee was £5 but I would like to be sure I am not being told a porky and that the bank is not taking liberties (NO, I hear you cry, a bank would not do that.)
Do you believe that Vanguard use a number of different Registrars (for UK/Ireland based funds) and that one of them might use a cheque to pay dividends? Is that credible in this day and age?

I would ask Vanguard but I would like to be more sure of the possible answers before I ask.