Bank collection charges & Bank discount charges

[Former Member]

Dear sir,

Can you help me explain the difference between:

Bank collection charges & Bank discount charges

Revenue from discount charges & Revenue from collection charges

Give me some examples

Thank you very much.

Faithfully,

Hangvt

[former_member193516]

Please contact your bank and get a list of business events that there might be including exlpanation.

This is not only different from bank to bank but also from country to country.

Cheers

Hein

[former_member13777]

Hi,

Bank collection charges : When you deposit a cheque to bank , bank will send to issuing bank for clearence. Bank will incur some cost(courier charges, administrative charges etc for the bak) and will charge the same to customer. Bank collection charges are usally incurred for outstation cheque. depends on the distance it varies.

This expense is debited to bank charges account or a separate account to track collection charges separately

Bank discount charges : For outstation cheque minimum it will take 7 days for getting credit from bank. So to speed up credit bank offers a facility where by you can discount your cheque and will give immediate credit. But they will charge you discount charges. This is done for outstation chques

This expense is debited to bank charges account or a separate account to track discount charges separately

Revenue from discount charges & Revenue from collection charges: These are the revenues of the banks

Regards

Sunoj