Making transaction fees count

FEES charged on business transaction accounts are falling, but there is still plenty business owners can do to cut their banking costs.

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FEES charged on business transaction accounts are falling, but there is still plenty business owners can do to cut their banking costs.

Research group Canstar has examined Reserve Bank of Australia data and 63 business transaction accounts across 44 financial institutions, and found big gaps in what business owners have to pay.

Some accounts charge zero transaction fees, while others charge up to $588 a year for a business averaging 50 transactions a month, and up to $2467 for businesses averaging 200 transactions per month.

"Of course, there could be other fees attached, such as dishonour fees or international transfer fees, but removing that regular transaction fee could work out to be a significant cash flow saving for some businesses," Canstar research analyst Adam Beu says.

"Data from the Reserve Bank indicates that over the past six years, banks' fee income from business deposit accounts fell from $835 million in 2007 to $623 million in 2012.

"The push for fee-free banking in the consumer space is spreading across to the business space. Shop around and see what deals you can get."

Business owners can avoid banking fees by looking into things such as business packages with their banks, Beu says.

"Investigate what you can get with your relationship with your institution - in the business space almost everything is negotiable."

Beu says business owners should identify how many transactions they do each month and work out if their needs have changed.

"Businesses may find that their means of transacting have moved on since they first opened their account," he says.

"Do they need a chequebook facility, do they need over-the-counter service?"

For businesses averaging 50 transactions a month, Canstar says the accounts that offer outstanding value come from Bankwest, Greater Building Society, Hume Building Society, People's Choice Credit Union and Suncorp Bank.

For high transactors (200 a month), it gives five stars to ANZ, Bankwest, BOQ, Commonwealth Bank, Hume Building Society and Suncorp Bank.