Bank fees were once considered unavoidable for small business owners, but that’s no longer the case. Some traditional banks impose unnecessary fees, while many online-only banks offer business checking accounts that strip their fee structures to the essentials. We’ll break down the most common business checking fees and tell you the best way to avoid or minimize them.
What you need to know
- Online business checking accounts tend to offer lower fees and fewer restrictions than traditional banks.
- To avoid business checking account fees, use a fee-free account or meeting balance or activity requirements.
- To reduce service fees, use ACH transfers and in-network ATMs, and limit wire transfers.
- To prevent overdraft and NSF fees, monitor cash flow and maintain a buffer balance.
Business checking fees at a glance
| Fee type | Typical cost range | What triggers it | How to avoid it |
|---|---|---|---|
| Monthly maintenance | $10–$25 per month | Falling below minimum balance or not meeting activity thresholds | Maintain balance minimums or choose a fee-free account |
| Transaction and excess transaction | $0.25–$0.75 per transaction | Exceeding monthly transaction limits | Use an account with unlimited transactions |
| NSF and overdraft | $10–$50 per occurrence | Insufficient funds for transactions | Monitor balances, opt out of overdraft, or use fee-free accounts |
| ATM fees | $2–$5 per use | Using out-of-network ATMs | Stay in-network or choose accounts with ATM reimbursements |
| Wire transfer | $15–$30 (domestic) | Sending or receiving wires | Use ACH when possible or choose lower-fee providers |
| Account opening and closing | $25–$50 | Not meeting minimum deposit or early closure requirements | Keep accounts open past required period and meet minimums |
Monthly maintenance fees
Typical cost: $10–$25/month
Banks charge monthly maintenance fees (also called monthly service fees) to offset operational costs, particularly for branch networks and customer service infrastructure. They typically range from $10 to $25 at traditional banks.
Monthly fees contingent on whether you maintain a minimum daily balance ($1,500–$5,000, depending on your banking provider) or meet a transaction threshold— if your account doesn’t meet required conditions during a billing cycle, the monthly fee is automatically applied. For example, a business checking account might waive its $15 monthly fee if you maintain a $2,000 balance or process $2,000 in monthly deposits.
How to avoid monthly fees
- Choose an online business checking account with no monthly fees
- Maintain your account’s required minimum balance
- Meet monthly activity thresholds like deposits or transactions
- Link external banking accounts to your business checking account
Transaction and excess transaction fees
Typical cost: $0.25–$0.75 per transaction
Until recently, higher transaction volumes meant increased processing costs. Although this is no longer (usually) the case, many business checking accounts still include a cap on free monthly transactions (100 to 300) before charging an excess transaction fee, typically $0.25 to $0.75 per deposit, withdrawal, ACH transfer, or check.
For high-activity businesses—such as those in retail or food service—these fees can become expensive quickly. For example, exceeding a 200-transaction limit by 100 transactions at $0.50 each results in $50 in additional monthly fees.
How to avoid excess transaction fees
- Choose a business checking account with unlimited transactions
- Consolidate payments (e.g., batch invoices or payroll)
- Monitor monthly transaction counts to stay below thresholds
- Upgrade to higher-tier accounts if your volume consistently exceeds limits
Overdraft or non-sufficient funds fee
Typical cost: $10–$50 per occurrence
NSF (non-sufficient funds) fees and overdraft fees are among the most expensive and common bank charges:
- NSF fee: Charged when your business checking provider declines a transaction due to insufficient funds in your account.
- Overdraft fee: Charged when your provider covers a transaction that exceeds your available balance
Banks justify these fees as compensation for risk and processing costs, and they disproportionately impact businesses with inconsistent cash flow. Typical fees range from $10 to $50 per event, and multiple charges can stack in a single day. For example, three declined payments could result in three separate NSF fees.
How to avoid overdraft and NSF fees
- Choose a business checking account that doesn’t charge NSF or overdraft fees
- Monitor your account balance, especially before large payments
- Set up low-balance alerts in your banking mobile app
- Opt out of overdraft coverage if you prefer transactions to be declined
- Maintain a buffer balance to absorb timing gaps in cash flow
ATM fees
Typical cost: $4–$7 per use
You’ll be charged ATM fees when you deposit or withdraw from an out-of-network machine. These fees can include both your banking provider’s charge ($2–$3) and the ATM operator’s surcharge ($2–$5), totaling up to $7 per transaction.
For businesses that frequently exchange cash—such as those in hospitality or retail—these fees can add up quickly. Traditional banks and credit unions usually waive fees for transactions within their ATM network, while some online business checking accounts partner with ATM networks for fee-free withdrawals.
How to avoid ATM fees
- Use in-network or partner ATMs when possible
- Minimize cash withdrawals by using digital payments or ACH
- Plan withdrawals in fewer, larger amounts to reduce frequency
Domestic wire transfer fee
Typical cost: $15–$30 (domestic)
Wire transfers are one of the fastest ways to send payments, but they come at a cost. Banks are charged processing and security fees by the wire network (usually Fedwire) they use to send transfers. They then pass these fees on to customers.
Domestic outgoing wires typically cost $15 to $30, while incoming wires may cost $10 to $20. (Some online providers don’t charge a fee to receive domestic wire payments.) While useful for large or time-sensitive payments, wires are often unnecessary for routine transactions.
How to avoid wire transfer fees
- Choose a business checking account that waives incoming wire fees
- Use ACH transfers instead, which are often free or low-cost
- Compare outgoing wire fees across banks before sending
- Reserve wires for urgent or high-value transactions only
Account opening and closing fees
Typical cost: $25–$50
Some banks require minimum opening deposits (e.g., $100–$1,000), and will charge a fee if you don’t deposit enough funds in time. You may also incur a similar fee (typically $25–$50) if you close your account within 90–180 days.
These fees are designed to discourage short-term account churn and ensure account profitability for the bank.
How to avoid account opening and closing fees
- Meet the minimum deposit requirement upfront
- Keep your account open beyond the early closure window
- Review account terms before opening to avoid unexpected penalties
Earn more interest, save more on fees, and do more of what you love.
Frequently asked questions
You can avoid monthly maintenance fees by maintaining the required minimum balance, meeting activity thresholds like deposits or transactions, or choosing a business checking account that doesn’t charge monthly fees at all—many online banks fall into this category.
An NSF fee is charged when a transaction is declined due to insufficient funds, while an overdraft fee is charged when the bank approves and covers the transaction despite insufficient funds. Both can cost $10–$50 per occurrence.
Yes, many online business checking accounts offer no monthly maintenance fees, no overdraft fees, and unlimited transactions. However, you should still review terms for fees like wires or ATM usage.
Banks often include a set number of free monthly transactions (e.g., 100–300). Once you exceed that limit, you’re charged a per-transaction fee. These limits primarily apply to deposits, withdrawals, ACH, and checks.
An excess transaction fee is a charge applied when you exceed your account’s monthly transaction limit. It typically ranges from $0.25 to $0.75 per additional transaction.
Generally, yes. Online banks often have lower overhead costs and pass those savings on to customers through fewer fees, including no monthly maintenance fees and unlimited transactions.
Yes, many business checking accounts allow overdrafts, which means the bank covers transactions that exceed your balance—but this usually comes with a fee unless the account offers fee-free overdraft protection.
You can reduce fees by maintaining minimum balances, choosing low-fee or fee-free accounts, using in-network ATMs, avoiding unnecessary wire transfers, and actively monitoring your account activity.
Yes. NSF fees can be avoided by keeping a buffer balance, setting account alerts, and using accounts that don’t charge NSF fees. Careful cash flow management is key.
The most effective strategy is to choose the right account upfront—ideally one with no monthly fees, no transaction limits, and minimal penalty fees—combined with proactive balance monitoring and smart payment methods to avoid penalties.
