What is the average cost of a bank transfer?

curiouswebster
curiouswebster used Ask the Experts™
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I am curious about finding the cost to a big bank to process something like a bank transfer from one account to another...

I am thinking about my bank, where I have two accounts, where I may move a few hundred dollars from one account to another.

Is the cost less than a penny for such a transaction for a website or an iPhone app to make such a transfer? I assume there are overhead costs where auditors review blocks of transactions, but I am not asking about that. Just the marginal cost for a hosted and highly secure website to process a transaction.

Does anyone have an idea about this?
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Principal Software Engineer
Commented:
In the US. the cost is a few cents to around a dollar.

https://www.firstach.com/front/ACH-Processing-Fees.html
JohnBusiness Consultant (Owner)
Most Valuable Expert 2012
Expert of the Year 2018
Commented:
If you can access both banks electronically (so no wire transfers) then a dollar more or less as noted above is a normal range. It depends upon the specific solution.
curiouswebsterSoftware Engineer

Author

Commented:
I am trying to drill down on the bare cost to the bank of the actual movement of the balance from one account to another. This cost can not be dependent upon the transfer amount and should not include "risk" considerations, nor the cost of providing support.

I also do not want it to include the cost of creating or supporting the systems or the network. I want to know the marginal cost of that one transaction.

Any clue? Is it less than one cent?
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JohnBusiness Consultant (Owner)
Most Valuable Expert 2012
Expert of the Year 2018
Commented:
Marginal cost of one electronic transaction here is 50 cents. Otherwise you need a package that gives you x transactions for free.

There is no non-free marginal transaction cost of 1 cent here.
Dr. KlahnPrincipal Software Engineer
Commented:
I doubt that information is available outside the organization involved.  This is almost certainly one of those "trade secrets."
curiouswebsterSoftware Engineer

Author

Commented:
> Marginal cost of one electronic transaction here is 50 cents

Who is making that charge? It sounds filled with profit and overhead. And costs in Canada may be higher not to mention that is probably Canadian dollars.


I guess I may need another pathway to find this number...but I assumed someone with high transaction volume website experience could wager an educated guess. I suppose the costs I am looking for would include:

1) electricity
2) web hosting processor cycle times...
3) network bandwidth costs

for example...
JohnBusiness Consultant (Owner)
Most Valuable Expert 2012
Expert of the Year 2018
Commented:
If a bank could do it for a penny, they would NOT charge 50 cents. There would be some significant price cutting.
curiouswebsterSoftware Engineer

Author

Commented:
Oh, I did not know the bank was charging you for this transaction.

At Bank of America (and other banks), in the U.S., transfers are free. So, I am trying to gauge how much they actually LOSE when someone moves $100 from account 1 to account 2.
JohnBusiness Consultant (Owner)
Most Valuable Expert 2012
Expert of the Year 2018
Commented:
I have a package and my deposits and transfers are free.  But they charge a monthly fee. If the account is truly free, the number of transactions are normally limited.
curiouswebsterSoftware Engineer

Author

Commented:
thanks
JohnBusiness Consultant (Owner)
Most Valuable Expert 2012
Expert of the Year 2018

Commented:
You are very welcome and I was happy to help.

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