Banking Fees You Should Never Pay
As a small business owner managing your money is one of the most important things you can do for the success of your business. Sometimes small businesses can run into an endless cycle of fees and more fees. That is why it is worth the time it will take to look into fees that are adding up through your bank or credit card to see if you are getting the best deal possible.
So what kind of fees might you be currently paying that you don’t need to pay?
- Monthly Checking Account Fees – Did you know when you put money in the bank, it doesn’t just sit in your account collecting dust? Your bank will take the money and lend it to others to use, while you are not “in need.” Most banks will pay YOU so they can essentially borrow your money. If you are paying your bank a monthly fee, you may want to consider a different bank. You wouldn’t ask to borrow money from your client and then ask them to pay you a fee on top of the money you borrowed! So why let your bank get away with these practices. Look for smaller banks within your community that do not charge ridiculous monthly fees.
- Overdraft fees – Overdraft fees are the charged to you when you spend more money than you have in your bank. Essentially, if you run out of money, your bank will charge you until you put money back. However, many banks do offer overdraft protection. This means that they will cover the cost of any purchases or withdrawals if you run out of money. Some banks offer this protection for free if you choose to “opt in” while others will charge you for the protection.
- ATM Withdrawl Fees – ATM Fee’s can be another unexpected fee that can be charged if you use a ATM machine that is “out of your network.” If you borrow money from your own bank’s ATM you will most likely not incur any charges. However, if you borrow money from another you bank, you may be charged a fee to use their ATM. Additionally your bank may charge you a fee because you used an ATM machine that is not associated with them. Unfortunately, it is almost impossible to get around these fees. However, there are banks that don’t charge out of network fees, or they will actually reimburse you for any extra fees charged.
- Late Fees – Late fee’s are some of the biggest charges that can add up over time. If you always forget to pay your bills, or just can’t seem to remember to get a check out on time, then consider setting up automatic bill pay. This will take all the guesswork out of paying bills. You will just have to make sure that you have enough money in the account each month to cover the bills.
- Watch your Credit Card Interest – Credit card interest rates can be high and expensive. To avoid credit card fees, you may want to ask yourself how disciplined you really are when it comes to purchases. If you have not problem paying of your credit card in full each month, then credit cards are not a problem for you. However, if you are a bit of a procrastinator, you may want to stay away from credit cards. Interest rates can be as high as 30%! Those fees add up quickly!
- Cash Advance Fees – It is often said that self-employment can sometimes resemble feast or a famine. When money is flowing, then life is good. When money get’s tight, it may be tempting to turn to cash advance. With a rate of 24% and additional cash fees on top of that, a cash advance against your next check may hurt you in the long run.
- Credit Card Processing Fees – Did you know that your rates can change based on how you run a credit card. If SecureGlobalPay merchants do not provide the correct Taxpayer Identification Number or legal business name or a mistake is made in recording the information within the IRS records, the IRS requires that the processor begin to withhold up to 28% of the merchant’s gross credit card sales. Please keep in mind, this percentage amount is only the penalty imposed by the Federal Government. Many states also impose a hefty percentage fine for not complying with the reporting mandate.
If you have any questions fees please contact SecureGlobalPay today!
