is this a valid argument for some charges?

ERICS_MUM

[Deleted User] wrote:

Do you understand the knowledge, technology and cost associated to such mechanisms... ?? The infrastructure and support for these systems doesn't come cheap and doesn't simply manage, fix or improve itself you know...

Exactly. Banks are in business to make profits. Infrastructure, premises/facilities and IT are all assets held by or investments in the business, capital employed within it, and on which they are entitled to make a profit. Also fixed costs have to be covered regardless of how many/few items are processed.

I know it seems that banks make mega profits, but that's because they have mega amounts of capital.

Chrysalis

[Deleted User] wrote:

The service relates to checking to see if funds can be released, then rejecting accordingly. that in itself is a service I presume.

in that case why isnt the charge applied when its paid, as the check still occurs.

the banks defense is as fragile as a card tower.

the_insider

Chrysalis wrote: »

in that case why isnt the charge applied when its paid, as the check still occurs.

the banks defense is as fragile as a card tower.

A lot of banks do (or did) apply charges for paid items as well as failed items. Depending on the type of account, the facilities that that account type offers you and the amount of the transaction (in some cases) determines the charges that you incur on the account.

Chrysalis

the_insider wrote: »

A lot of banks do (or did) apply charges for paid items as well as failed items. Depending on the type of account, the facilities that that account type offers you and the amount of the transaction (in some cases) determines the charges that you incur on the account.

I meant for items that are paid when there is sufficient funds.

Alpine_Star

Chrysalis wrote: »

in that case why isnt the charge applied when its paid, as the check still occurs.
.

That's a good question but one that was answered by the banks during the test case hearings - they have complete discretion as to when they charge for the check.

davidgmmafan

I believe at least one bank (Lloyds sticks in my mind) used to apply the charge for an unpaid item at the time. Not sure if they still do this or even if that was the right bank.

On topic I'm sure the bank would say something like the fees are waived when payments are not returned. Something like that.

It would be quite interesting if banks charged for all transactions given the concerted efforts by banks and business to encourage people onto DD or other automated payment methods.