How does online banking work. Does my bank print a check and mail it to the payee?
Or is money wired to the payee from my bank? Doesn’t online banking cost the bank money? How come banks don’t charge for this service. I’m not naive I know they pass on the cost to me but how?
Related Items
- What is the maximum amount of money that can be withdrawn a bank w/out prior notice?
I want to pull $3,500 out of the bank to buy a bike but, I want to make sure that I don't have to ask them in advance due to not getting off work unti... - How long does it take money to transfer over internet banking between banks?
I'm expecting some money a friend transferred using internet banking. That was done a few days ago now, haven't received it yet. They are with a diffe... - How long does it take to transfer money from one bank account to another using online banking?
My friend has a bank account with HSBC and needs to transfer some money over to my Natwest bank account. How long would it take to clear? I think they... - How does the personal loan from banks such as Bank of America or Citibank work?
I just received an offer to apply for a personal loan for up to 35,000 with Bank of America and for up to 5,000 with citibank. I actually need no more... - Can banks tell how many times an online bank account has been accessed and the times?
Someone has formed a username and password to watch bank transactions for a few years now, can the banks track each time the account has been entered?... - What kind of a bank account should I open?
I'm a college student and I have a check to cash. I'm planning on going to a bank but I wasn't sure if I should get a checking account or a savings a... - What time of day should money get paid into my bank?
Some money was supposed to be going in today, i've just checked my bank online and it hasnt gone in yet. Is there a chance it will still go in today?... - How can I pay money into my bank when it is closed?
I have a direct debit coming out tomorrow (sunday) and need to pay in some money for it, but all my banks are closed (I'm with Llyods TSB). How can I... - How does the Central Bank and the Treasury work ?
Could somebody who really understands the relationship between these two could explain to me in really simple way who is the one who prints the money?... - How much does a typical bank debit card cost a shop or online merchant to process?
Say I buy an item for £20 - how much does it cost the shop to process my card for payment? Is it the same for online transactions (the charge made by... - How do you print a Natwest bank statement online?
I require the bank statement with my address on it tomorrow so can't wait a week for Bank to send it to me. I have logged on to Natwest Online and vie... - How do i check my bank statement online?
Well i wish to make a payment to someone using moneybookers. I entered the amount to deposit and they took a small sum up to 2.99 out of my account. I... - Does it really matter which bank I choose to start a savings account?
My girlfriend and I are planning to start a joint savings account to save up for a trip. We have all the little details figured out, such as how much ... - How does printing money work? As in, who regulates how much money a particular country can print for themself?
Basically what I want to know is that who regulates this amount? What if the government of a particular country simply decides it will print some more... - What are some other ways to check your bank statement besides online and waiting for your monthly statement?
I just applied for an online account through my bank so I can check my statements online. It won't arrive till a week from now. Are there any altern...
July 20th, 2010 at 9:43 am
Wiring the money is cheaper and more practical than handling actual cash or checks, so it actually saves the bank money. Banks make money by taking the money you have deposited with them and lending it to other customers and charging them interest. The only fee I am charged by my bank is a $5 debit card fee once a year, and any interest I owe on my overdraft protection account which is seldom used.
July 20th, 2010 at 10:06 am
Online banking is a bigger term than simply online bill pay. There are several ways your bank can pay your payee – one is that they simply mail a check. The other, if they do a lot of business with the payee, is to simply make an electronic payment (ACH) to your payee – usually places like your electric company. Another way, if the payee banks at the same bank, is to simply deposit money to the payee’s account at the bank.
Any of these cost the bank no more than if you had written a paper check or had initiated an ACH/wire transfer and in some cases, costs them less.
Some banks offer these services for free, others don’t. One of my banks charges me about $0.65 to send a check from the bank but doesn’t charge me to electronically pay someone. Another of my banks charges nothing to send a check but they don’t like doing an ACH so they charge me for that.
In the long run, nothing at a bank is free – it will be paid for somehow. Usually with banking fees.
July 20th, 2010 at 10:30 am
Are you talking about bill pay? Done thru your bank. Most of those transactions are electronically transferred which cost them nothing.
If they don’t have that creditors info on file they will send a check. yes this cost money but I bet it makes up a small portion of the transactions they process daily.