The new cheque deposit fee for business accounts at Standard Bank

[Dave A]

Well, here we go. I wasn't sure whether Standard Bank was really having another crack at this this year - but the first cheque deposit fee just landed.

Customer deposited a cheque into my account for R114.00 - branch cheque deposit fee is R15.00

At least this time it's going to be per deposit rather than per cheque - but if my clients are going to deposit the cheque themselves, practically there isn't much of a difference.

[IanF]

Well, here we go. I wasn't sure whether Standard Bank was really having another crack at this this year - but the first cheque deposit fee just landed.

Customer deposited a cheque into my account for R114.00 - branch cheque deposit fee is R15.00

At least this time it's going to be per deposit rather than per cheque - but if my clients are going to deposit the cheque themselves, practically there isn't much of a difference.

Then when the cheque is rubber the fun starts. You get the honour of paying for this plus they charge the drawer as well.
Sometimes a cheque is the most practical way to pay, I had a plumber come out in December and you could pay by credit card which was done by filling out your credit card details on there invoice together with your cvv code. This would then be used to do a manual "swipe" I balked as I don't want those details in an invoice book who knows when someone will harvest that database, so an expensive cheque it was. I should of just done an EFT but wasn't thinking at the time.

[Blurock]

Well, here we go. I wasn't sure whether Standard Bank was really having another crack at this this year - but the first cheque deposit fee just landed.
Customer deposited a cheque into my account for R114.00 - branch cheque deposit fee is R15.00

This just goes to show how stupid banks have become. The charge would have been the same for a R50 deposit! This is a total rip off and consumers should all stand up to these money grabbers. I see this as a form of extortion as you are given no alternative. You have to accept legal tender from your customer, but now you end up feeding the greedy bank.

The banks should rather concentrate on funding and growing businesses which will automatically increase their income. Allow me to quote some real examples:

Business A with T/o of R2.5 million lands a big tender because of their technical expertise in IT. With the right finance (after approaching 3 banks, other institutions and loan sharks) they increased T/o to R40 million in the first year. They buy their own building, employ more staff and sub contracts some of their work.

Business B is refused by the banks, but obtain private bridging finance and T/o increases from R2mil to R22mil in one year. Now all the banks are falling over each other to offer facilities!

The increase in transaction volumes in both these cases will generate additional fee income so the bank can actually afford to lower their banking fees. More income is generated by payroll and staff accounts. These businesses require more equipment and vehicles which needs to be financed and insured. They also need to consider staff medical aid and pension schemes which will generate further annuity income for the bank.

But for the sake of R15, the bank are p!$$ng people off! They will now lose out on the bond finance, insurance, pension scheme and most of the other business that will be placed with alternate service providers.

[Justloadit]

Well got informed to day that ABSA will now charge R11 for a cheque deposit. If all the banks do this, we have no choice any more.

Personally I prefer an EFT, however in certain circumstances, such as a Trust that I administer, using a cheque to make a payment is just easier, especially when you have more than one signature.
Yes it can be done via EFT, but what if the co-signer is not PC illiterate or IT illiterate?, and if you look at the Stranded Bank business banking, you have to have a dedicated PC for internet banking with codes that change every month, etc a huge overhead to allow two people to authorise a payment.

[Blurock]

Well got informed to day that ABSA will now charge R11 for a cheque deposit. If all the banks do this, we have no choice any more.

They are like sheep. If the one does it they will all follow without considering an alternative to differentiate their service to attract new customers or to keep existing ones.

The banking industry in South Africa is considered to be world class - not because they are so good, but because they do not take risks and rip off their customers to maximise shareholder value.

[Miro Bagrov]

Sorry everyone, I only found the topic now.

I worked at this bank last year... I am aware of their style.

Anyway, that's not helpful.
What might help:

1. Discourage Check deposits from clients.

2. Set up a special account where check deposits are still free. (a non-business deposit)

3. Cash Cheques pass fees onto the drawer.. Cash all uncrossed cheques.. (banks only call the drawer for over R10 000 encasement - or suspicious ones.)

I want to tell you, from an insider's perspective... They are very secretive about the fees. For example, I was the only one who took interest in fee structures. I caught them adding a monthly fee to Mzansi accounts. When I said this is ridiculous the team leader told me to keep my mouth shut and that the bank needs to do anything to get more money, in his view..
No one is informed about fee changes at Branch level - the whole thing is hush hush. A sales consultant can tell you the benefits of any account as in, "better service", "specially for young people", etc. Asking specific questions on the price will show you they don't know. This goes for all banks.

For example most of you don't know your bank has made contractual provisions to close your account if you do not use it for 6 months. Some people like to leave their money for years in accounts and think it' safe - it's not. Banks leave contractual provisions to change fees without notice (although this is illegal according to the acts), to market products to you (also illegal), to automatically "upgrade" your account (illegal), to withhold interest unless an average balance is maintained, etc. Read Terms / Cond. section to understand.

[Newretailer]

I opened my Capitec account a couple of months ago but kept my STD bank one just in case. Yesterday I went to close it. They didn't even ask for a reason. It feels good to finally be rid of that rip-off.

I agree with you Blurock. Banks should increase business to increase profit. This is where I think capitalism has gone crazy. The shareholders must be satisfied at all costs. Seeing that many businesses do not seem to be able to increase profits by truly increasing their business, they simply load on more charges to create illusions of increased business. Or in the case of manufacturers, they just make the sizes of everything smaller for the same price.

I don't know where this bank nonsense is going to stop. Every year they add charges on previously free transactions. Surely a point will be reached where it will not be possible anymore?

[Blurock]

I don't know where this bank nonsense is going to stop. Every year they add charges on previously free transactions. Surely a point will be reached where it will not be possible anymore?

It will only stop when we as consumers stop being gullible and ans stand up for our rights.

[Miro Bagrov]

It's like I said in this other article... Bank is YOUR SERVANT not YOUR MASTER. Wouldn't you fire a wage-worker if he caused you that much problems? Then go fire your bank!
http://www.theforumsa.co.za/forums/s...all-businesses
1.Don't use a bank unless you have to.
2.Don't use the account they want you to.
3.Use accounts without deposit fees to receive money then transfer them to accounts that don't pay withdrawal fees to take the money out. Again... Don't deposit unless you have to.
Like everyone is saying. We must consider that banks are adding costs which destroy our profits. This means our prices have to increase.. When that happens fewer people buy from us. Then we have to close our shop because some guy next door who runs a cash & carry shop will dig us under with his discounts...

[IanF]

I see Bidvest have opened a bank, Website this is great for the competition it provides. It looks worthwhile to look at. Has anyone used them for banking?