Coin wrappers are typically charged at least a 3% fee and sometimes more, according to the National Association of Retail Cash Machines.
The fees vary for each business and can be significant. Many locations that are located in urban centers, such as Bank of America locations, charge 3% or more. Many other locations are located in suburban locations, but also charge higher amounts.
Many small banks also have a 5% to 10% fee for coin wrap transactions. However, more and more banks are eliminating their coin wrap transaction fees, and most banks and credit unions do not have the option to add additional coin wrappers to their accounts.
This leaves consumers wondering if the cost of a bank wire, a business check or checking account transfer is covered by your bank.
Which banks do you have a history with?
Your personal banking information is your responsibility to protect. As a result, many banks do not allow their customers to do any electronic transactions to or from their accounts. For example, Visa does not allow business customers to make purchases from their accounts.
Some banks that allow online transactions, credit cards or bank account transfers do not offer coin wrapper services, unless those customers pay a very high monthly account fee — often in the neighborhood of 10% of the total transaction balance. This means that consumers who wish to make a bank wire, check, credit card or bank account transfer — but do not want to have to pay a huge account transaction fee — are forced to rely on the banks that have no coin wrapping or credit or debit card capabilities.
Most banks that provide these services are located in states where state laws prohibit the transaction of any check, cashier’s check or any other instrument that has the “image, inscription or likeness of bearer” in a public place. Some locations, such as Bank of America locations, prohibit the transaction in all places of business.
In addition, some banks, such as the state-regulated banks, charge a very large annual fee for the coin wrapping account service that also protects customers against counterfeit checks. A customer should always use the lowest fee available to them for a bank wire, check or credit card transaction.
For example, a consumer who is using AmericanExpress credit, debit or check for a wire or check transaction costs AmericanExpress and its subsidiaries $3,500, $3,500 for a credit or debit card transaction. By comparison, a coin wrapper would cost only $15.
Some banks that do offer coin wrappers