Bank service charge expense
/What is a Bank Service Charge?
A bank service charge is a fee charged by a bank to a customer for any number of banking services, including the following:
ATM usage fee. This is a fee charged by the owner of an ATM that is not within the network of the bank in which the person’s bank account is maintained.
Basic account maintenance fee. This is usually a standard amount that is charged each month for the specific type of account that the customer has agreed to maintain at the bank.
Overdraft fee. This is a fee charged when an account holder writes checks for a greater amount than the current balance in his or her account. The bank charges a fee to allow these checks to clear.
Transaction processing fee. The bank may charge additional fees for the number of checks deposited and/or the number of checks written on an account.
Wire transfer fee. The bank charges a wire transfer fee whenever the account holder initiates a wire transfer of funds to a third party.
What is Bank Service Charge Expense?
Bank service charge expense is the name of an account in which is stored all fees charged to an organization's checking accounts by its bank. This separate account is more likely to be used when a business maintains a large number of checking accounts, and wants to analyze the costs of maintaining them. When there are fewer checking accounts or the fees are quite low, service charges are more likely to be recorded in a miscellaneous expenses account.