New York Cash Exchange to allow financial institutions to charge for deposits

<p>WASHINGTON – The New York Cash Exchange (NYCE), an ATM network with more than 1000 participating credit unions, along with banks, will allow its participating banks and credit unions to charge fees for accepting deposits from other participants’ members or customers starting in September. Susan Zawodniak, vice president of NYCE and executive director of the NYCE Network said the network decided to make the change after a number of participating institutions indicated that the cost of handling the deposits were making them rethink accepting them. “We wanted to preserve the option of making network deposits for our network users,” Zawodniak said “and it just seemed more rational to allow our participating institutions to set the price for that than trying to come up with a flat price across the network” she said. Deposits are significantly more expensive than deposits because they demand a significantly greater human element, Zawodniak said. “Deposits have to be proofed,” she said, and erroneous deposits have to be returned to the card issuing institution to be passed onto the member or customer. “There is just a significantly higher cost in the transaction,” she said although she couldn’t quantify the extra cost</p>