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Making Money the Old-Fashioned Way: Fees

In the U.S., online banking fees have all but disappeared. Online account
access fees went by the wayside at the beginning of the Internet era (circa
1995) and bill pay fees have been disappearing in the wake of Bank of
America’s
highly advertised strategic decision to give away bill payment
beginning in 2002. However, as we discussed last month, do not give
up the notion of charging for online services. On the contrary, as more
users go online, there is a much bigger market for premium services along
the lines of American Express and Federal Express. Following is our list of
potential fee-based services and the range of potential charges. The “Low”
column lists the range of fees geared towards consumers, while the fees in
the “High” column are more appropriate for small businesses, which are much
less fee averse, and other high-end consumers.

Note: Commentary applies to the U.S. market only. Other international
markets have much different appetites for or against various fees.

 












 

Source: Online Banking Report, 9/04
Notes:

*The fees in the Low column are more appropriate for average consumer
users; the fees in the High column are more appropriate for micro and
small businesses, and some consumers with complex finances; for simplicity, we
have rounded most fees to the nearest whole dollar; however, common retail
pricing practices are to set prices below natural price points such as $9.95
instead of $10