Retailers Recommend To Collect Cheque Fee

Press, Volume CVII, Issue 31543, 4 December 1967, Page 10

Retailers Recommend To Collect Cheque Fee

Through its local associations, the Retailers* National Federation had recommended to its members to collect the 3c bank fee on all cheques received, said the president of the Canterbury and Westland Retailers Association (Mr J. R. Vincent) on Friday. The 3c cheque fee was being charged by the banks—not the retailers—and although retailers were collecting it for the banks, it was not their responsibility to pay this fee. Consequently customers were asked to add the 3c when making purchases or paying by cheque. Retailers felt that as the person who drew the cheque nominated this method of payment, he was the person who was responsible for this charge. The cost of the 3c bank charge should, retailers

felt, be included in the purchase price of the cheque book, which would be the most simple and easy method of collection. Business firms had their own 4c activity fees to pay the banks on ledger entries and it was not economically feasible to pay the drawer’s fees as well. If business proprietors had to carry all the bank fees as part of their overheads, the non-charging of the 3c cheque fee to persons presenting them would amount to a 3c discount to cheque customers, when the cash customer has to pay the full price. This idea would be completely unfair and contrary to orthodox trading practices and was why the trade, as a whole, was asking the drawer of the cheque to add the 3c.