Peter Lohmann explains why businesses pay for banking while consumers get it free. As companies grow and increase transactions, banks shift them to paid products charging per check, deposit, and ACH transfer. Larger businesses end up paying fractions of a dollar for basic banking services.
What we're used to as just people existing in America is free banking, but in business banking, once your needs become sophisticated beyond just like a free checking account at Chase or whatever, if you have a sufficient volume of transactions or checks or debits or needs with regard to ACH blocks or other things, eventually you will be forced into some type of a paid banking product. And they will charge you like fractions of a dollar for every specific thing that you do— writing a check, cashing a check, deposits, transactions. And so what ends up happening is as you get bigger, you actually end up paying to bank, which again is strange because we're not used to it from the consumer side.
