I. Intermediary Involvement

Traditional financial systems rely heavily on intermediaries such as banks, payment processors, and clearing houses. Each of these entities typically charges fees for their services, which can accumulate and make transactions costly for users.

Example: Automated Clearing House (ACH) network, “an intermediary” that facilitates electronic payments between bank accounts charges multiple fees against a user including:

🗣️ Transactional flat fees: $0.20 to $1.50 per transaction

🗣️ Transactional percentage fees: 0.5% to 1.5% of the transaction amount

🗣️ Monthly Fees: Around $15 per month

🗣️ Batch Fees: $0 to $1.00 per batch

🗣️ ACH Return Fees: Around $2.50 per returned transaction

The average monthly fee for interest-earning checking accounts is now $15.45, with the average minimum balance required to avoid this fee climbing to $10,210, an increase of 18% from the previous year.