Why do companies like chase bank charge an additional $10 for payments made online?

Question : Why do companies like chase bank charge an additional for payments made online?
I have a car loan through Chase Bank. If I pay with a check and mail it in, there is no extra charge. However, if I pay by debit card online, they charge me $ 10 extra. It seems to me that it would cost Chase bank less money and time to process an electronic payment then it would be to process paper. Is it just me or is Chase Bank just charging me for the convience, even though it’s a convience for them also?
electronic payment processing

Best answer:

Answer by shiprepairwoman
Because they can.

This entry was posted by admin on October 12, 2010 at 6:48 am, and is filed under Banking. Follow any responses to this post through RSS 2.0.You can leave a response or trackback from your own site.

Comments (7)
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#1 written by gpatrick900 1 year ago

When you use a debit card online if it has a MasterCard or Visa symbol. It is run through like a Cash Advance. So part of the fee is what they get charged for taking your card. The other is a surcharge. Under Visa and MasterCard rules banks can charge a fee for using the card as a Cash Advance. Even your bank could charge you a fee for doing this.

My suggestion, since they already know your checking account number. Is to sign up for online payment (Not automatic payment).

Don’t use the instant payment option that usually has a fee.

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#2 written by tonkatruk_2001 1 year ago

because they can AND they are hoping you will be late cause then they get even more (possibly even get to raise your rate

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#3 written by Vicky C 1 year ago

Have you asked the bank this question. Ok, here is the thing. since you know it is cheaper to pay by mail then do it. I would much rather be out $ 0.41, than $ 10.00
Its your choice.

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#4 written by Bob 1 year ago

You got it dead on: you are being charged for the convenience.

Note: are you sure? The places that I deal with only charge for last minute “rush” payments. If I pay a week early, there is no charge.

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#5 written by seema kg 1 year ago

U R Right, its more cost effective for the Bank to do it online. Its another one of the Internet Rip-offs, and what I call Dum-Dum things that happen in this great country of ours! One day , everyone is going to protest , and maybe then it will stop.

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#6 written by Landlady R 1 year ago

Because they can!!!!
Use online banking, Chase is set up to receive electronic transferrs from online banking customers, therefore the pymt is there within 24 hrs.

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#7 written by alisjohnst 1 year ago

They are charging you because they can. They know most people don’t want to bother mailing in a payment and usually pay at the last minute.

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