Bank fees

[555]

Why are the bank fees so high? How come the bank fees can be up to 15% with some deposit methods?

When running a e-commerce store online (or a nightclub or whatever) and you integrate a payment gateway the cost is nowhere near the costs as the casinos seem to be paying. Why is that?

[Scampi]

Any deposit fee is ridiculous. I don't promote any above 2.5%, but even that is too high in my opinion. There should certainly be a maximum fee. Paying £25 for the privilege of gambling £1000! What's that all about?
Which ones charge 15%? I doubt the player retention is very high.

[Ace Fun]

Thank goodness Bitcoin is here.

[TravG]

The high fee's are probably more for US residents right? I know for the US you have to find a payment provider which will take US deposits which in turn they probably charge more. Thanks UIGEA!

[Cash Bonus]

Hello 555,

For quite some time, depositors have complained about banking fees. Banks sometimes charge you a fee to open and maintain a checking account; they often charge people fees for using ATMs managed by other banks. A great deal of controversy has surrounded “overdraft fees,” charged when customers write a check for an amount larger than the balance in their checking account. Critics argue that banks make money on overdraft fees because customers underestimate the risk of bouncing a check, which can occur just because of the timing that banks use to record credits and debits; banks in this way make money on mental lapses that everyone is prey to.

The controversy over fees has always puzzled economists. It’s strange that people complain about fees but not about the bank’s failure to pay more than 0 percent interest on checking accounts. The fees also reflect banks’ costs. Someone who never bounces a check or uses ATMs owned by other banks saves his bank some money—and so he is rewarded by being spared the fees that others must pay.

Moreover, Econ 101 tells us that when a market is competitive, the sellers will set prices at just enough to cover their costs. Although there are some huge banks like JP Morgan and Citi, the market in banking is, in fact, quite competitive. In most places—and certainly in densely populated cities—you can choose among dozens of banks; you can also use online banks. The competition among banks should drive down prices and ensure that depositors are compensated fairly. It should also ensure that banks efficiently choose whether to pay depositors in the form of interest or low fees.

[Scampi]

For quite some time, depositors have complained about banking fees. Banks sometimes charge you a fee to open and maintain a checking account; they often charge people fees for using ATMs managed by other banks. A great deal of controversy has surrounded “overdraft fees,” charged when customers write a check for an amount larger than the balance in their checking account. Critics argue that banks make money on overdraft fees because customers underestimate the risk of bouncing a check, which can occur just because of the timing that banks use to record credits and debits; banks in this way make money on mental lapses that everyone is prey to.

The controversy over fees has always puzzled economists. It’s strange that people complain about fees but not about the bank’s failure to pay more than 0 percent interest on checking accounts. The fees also reflect banks’ costs. Someone who never bounces a check or uses ATMs owned by other banks saves his bank some money—and so he is rewarded by being spared the fees that others must pay.

Moreover, Econ 101 tells us that when a market is competitive, the sellers will set prices at just enough to cover their costs. Although there are some huge banks like JP Morgan and Citi, the market in banking is, in fact, quite competitive. In most places—and certainly in densely populated cities—you can choose among dozens of banks; you can also use online banks. The competition among banks should drive down prices and ensure that depositors are compensated fairly. It should also ensure that banks efficiently choose whether to pay depositors in the form of interest or low fees.

http://www.slate.com/articles/news_a...mpetition.html

[TheGooner]

Why are the bank fees so high? How come the bank fees can be up to 15% with some deposit methods?

The answer is of course that they are not that high - usually.

Legitimate credit card charges max out at about 3.5-4.0% from Mastercard and Visa and to be that high you have to be very small volumes and/or a high risk business for fraud. Of course if we are talking about US credit cards being used in online gambling - then the business needs to use a 3rd party "front company" which has nothing to to with gambling to accept that payment and they'll add their fee to that.

Skrill and Neteller fees to merchants are similarly priced - but again US users ccannot take part.

One area that might be causing high fees is if people are making numerous small bank deposits or withdrawals. It is not unusual for banks to charge a fixed fee for this service - ranging from $15, $25 and even $50 per transaction. If a player is only depositing $100 or $200 then as a percentage fee those banking fees are very high.

Often the casino / sportsbook eats the fee in order to attract the customer, and so those fees show up as costs in the affiliate backend.

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Bring on crypto-token deposits eh? Using LTC or ETH deposits can be made for a few cents cost, and completed and confirmed within an hour. But unfortunately, very few people have crypto currency.

[Sherlock]

Using LTC or ETH is next to nothing only because people do not use it. ETH scaling is 10x worse than Bitcoin according to AA. There are cryptocoins that scale better than bitcoin, but they are not blockchain (they are DAG). But they are in the testing phase. The main DAG coin Iota even has zero fees and always will have, because actually the network should transact better with more transactions on network (so it is a first computerized network, where spam is welcome).

And according to banking fees of fiat: I heard that some countries, right now Slovakia, started to charge extra fees to gamblers, if they deposit to gambling sites. Today one guy from there wrote that his bank gave him extra bill 100 EUR for those deposits.

[Betivity]

Banking fees are terribly high, this has been an issue for quite some time now. I am glad cryptocurrencies are on the table now at least to give options for users. But I dont think you can run away from any type of fees, they are inescapable...