Bank accounts charge their customers fees for a multitude of reasons. Business accounts often have more fees attached to them due to the volume of the account, but are there bank charges for cash deposits? 

Account fees can add up quickly, so understanding what your bank may charge you for is important for reducing those fees. Cash handling services like Integrated Cash Logistics’ cash capture technology can help mitigate any excessive or unnecessary charges so that your business can thrive. This article explains what you need to know about what banks charge for cash deposits, along with other common fees to avoid.

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ICL’s software-first CashSimple™ solution streamlines everything from change orders to tracking deposits.

Why Do Banks Charge For Deposits and Other Transactions?

A bank service charge can be applied to multiple transactions, such as:

  • Overdrafts
  • Insufficient funds
  • Early account closing
  • Monthly service fees
  • Card and check fees
  • Cash deposit fees
  • ATM fees

The main reason that there are so many commercial bank fees is that, just like any other business, banks need to make a profit too. Banks need to make sure they handle their cash flow, pay back any loans, are able to buy supplies and pay for utilities to keep the building running.

Banks provide a vast array of services for their customers, and those services aren’t free. These fees, while aggravating at times, help keep the business up and running. However – also like any business – they are trying to make as much money as they can, so some of these fees can creep up on you. Knowing how to navigate which fees you can avoid can help keep your own business as lucrative as possible.

6 Common Bank Fees

Most business accounts will have more money coming in and out than a personal checking or savings account. A business bank account limit can affect your account’s overall fees, along with depositing cash into a business account.

There are multiple other types of bank service fees for a business to be aware of, including:

  • Online banking charges
  • Cash deposit processing fee
  • Returned deposit fees
  • Cash handling fees

Below, we’ll dive into the six most common processing fee bank transactions for a business and what you need to look out for to help increase your cash security.

Monthly Service Fees

The average bank fees per month for a business are often purely for the upkeep of the account. In some cases, your business may waive this cost if it meets a certain amount, but typically, this cost ranges from $10 to $20 per month.

Many businesses may not be able to meet the limit every month, depending on the size of the business and how much revenue it pulls in consistently. However, you can avoid the monthly service fee if you reach and exceed that limit.

ICL’s CashSimple™ solution lets you save on your bottom line by avoiding unexpected and hidden fees from other cash handling services.

Excessive Transaction Fees

Excessive transaction fees are another one of the common business bank account fees. This is a fee for any transaction you make each month that is over your business or account’s limit. For example, many banks commonly have a business account transaction limit of 200-300 per month.

Your bank may charge you for each transaction once you reach this amount. This can be for a cash deposit fee or an online transaction, although many banks waive online business checking account transactions. Depending on the size of your business, you may be close to hitting this limit every month or nowhere near it. Many banks allow you to change the transaction limit when you create an account.

Cash Handling Fees

Cash handling fees are for cash deposit immediate transactions. This means that you can generally only deposit a certain amount of cash into your account before the bank charges you a fee. Many banks charge $.20-.40 per cash transaction that is over $100 after you reach the cash handling limit. This limit can drastically range depending on the bank and your business.

Overdraft/Not Sufficient Funds (NSF) Fees

Overdraft fees are common in any bank account, not just business accounts. However, these fees can be drastically larger in a business account. Simply put, if you spend more money than is currently in your account, your bank may charge an overdraft fee.

While many businesses are able to avoid this due to money management and being careful with their spending, sometimes a disaster or an accident can occur, causing an overdraft. This fee is generally around $35 per transaction that occurs.

Learn how to shorten your distance to cash while fostering growth through strong business cash management.

Returned Deposit Fees

Process fee bank transactions also can include a returned deposit fee. A returned deposit fee occurs if you deposit a check from someone else into your account that then bounces. Returned deposit fees are generally anywhere from $10 to $35 for each transaction. While this doesn’t happen commonly – especially since checks are becoming more and more obsolete – it’s still important to be aware of.

These fees can quickly become dangerous, as they may also trigger an overdraft fee, depending on how much is in your account.

Card and Check Fees

Lastly, whenever a transaction uses a card, some banks or companies impose a processing fee. This fee can be anywhere from 1.5 to 3.5% depending on the provider, which can quickly add up. If you notice minimum payment requirements on card transactions, this is usually to offset the processing fee.

Additionally, check fees can occur when you use another bank’s ATM. This can be avoided by using network ATMs whenever possible. Fees can also occur with mobile check deposit for business transactions.

Depending on the size of your business, you may be able to waive these fees for customers if you have enough revenue. However, it can be difficult to avoid for smaller businesses.

How to Avoid Excessive Bank Charges

Despite the amount of bank charges for cash deposits and other fees, there are ways to avoid these excessive charges. While your business can’t avoid every charge, mitigating these fees can help keep your business up and running for years to come.

A few tips on how to avoid excessive bank charges include:

  • Setting Up Alerts: It’s a good idea to set up alerts in order to avoid overdraft limits or excessive transaction fees. The alerts inform you when you are close to exceeding your account balance or the number of transactions allowed each month.
  • Pay Attention to Limits: While setting up alerts can drastically help reduce excessive fees, it’s still important to be aware at all times of how much money you have in your account and what the limit is for each type of transaction.
  • Invest in Cash Capture Technology: Installing a smart safe can protect the cash you have on hand, provide real-time reporting on how much you have, and give you an alternative to provisional credit.
  • Be Smart About Card Use: Overall, be smart about how and where you use your card or deposit cash. Simply being more aware can save you and your business a lot of grief in the long run.

Consolidate Banking Relationships and Save With Integrated Cash Logistics CashSimple™

It’s imperative for businesses to be able to use banks, but being able to do it smartly can save you time and money. Knowing how these bank fees work can drastically help you reduce any excessive fees and keep your money where it belongs – with you and your business.

Get in touch with our team at Integrated Cash Logistics today if you have any questions about how our cash capture technology can help your business thrive. Our relationship with our customers begins and ends with your best interests in mind. Schedule a demo today to make your banking easier.