Monthly Archives: July 2010

The good news is that the unbanked don’t mind paying fees for services. Every transaction they do typically has an associated fee. These fees are not considered usurious or non-completive. The unbanked prefer the fee schedule at a check-cashers or Wal-Mart because the fees are printed up front, in big letters on a sign. Customers know what they are paying, and there are no hidden “gotchya’s.” The common perception that check-cashers and payday loan stores charge way more than a traditional bank for comparable services is not really true. In fact, according to a recent national study by Moebs Services as reported by Payment News, “Consumers who are frequent users of overdraft (OD) fees at banks and credit unions could save money by bridging their cash gap with a 14-day payday advance loan, rather than paying checking account over draft fees.”