What is Cash Handling Charges?

Cash handling charges are fees imposed by financial institutions or businesses for the processing and handling of cash transactions. 

These charges cover the costs of the manual labor, security, infrastructure, and administrative efforts required to manage physical cash. It depends on the type of transaction, the institution's policies, and local regulations. Here are the situations where cash handling charges apply:

What is cash handling charges in bank? 

• Banks and financial institutions charge cash handling fees when individuals or businesses make cash deposits into their accounts. This fee ensures its security during the deposit process.

• Some institutions also charge a fee when customers withdraw large amounts of cash over the counter. This is particularly common when the requested withdrawal exceeds a certain threshold.

• When there is an exchange of currency for another (foreign exchange) in cash by individuals or businesses, there a cash handling charges associated with the conversion.

• When there is an exchange of coins for paper currency or vice versa can also incur cash handling charges due to the effort required to count and process coins.

• When there is a regular pickup or delivery of cash to/from banks, armored car services, or cash management companies for businesses, cash handling charges may be applied.

• Businesses that accept cash payments might be charged cash handling fees by payment processors.

• Some ATMs also charge customers a convenience fee for cash withdrawals, if the ATM is not associated with the customer's bank.

This is the answer to

what is cash handling charges.

But remember that cash handling charges are not uniform in all financial institutions or businesses. Different institutions have different fee structures, based on factors such as account type, transaction volume, and customer relationship.

Before using banking services, it is recommended to review the terms and fee schedules provided by your financial institution to understand the particular cash handling charges that will apply to your transactions.