How much to banks charge each other?

[deadgoon]

Does anyone know how much it costs the banks for me to transfer money from my bank account to pay my credit card bill online? For example, if I want to pay a Citibank credit card bill out of my checking account at another bank, what is the cost of that transaction? For me it is free, but I am assuming my bank charges Citibank some small fee for this transaction. Is this correct, and if so, how much is it?

[marvholly]

to the best of my knowledge there is NO charge just as if you had written & mailed a check.

[minnie1928]

Interbank transfers, such as paying your credit card, if they are run through the ACH system cost very little (think pennies).

All banks have an account with the fed where they are required to keep a balance of a certain amount (depending on how much they have in deposits, the types of deposits, etc). The earn a earnings credit on that balance that can be used towards the monthly fees assessed by the Fed. The monthly fees come from transactional items (ACH, checks, wires, etc) as well as others. So, the earnings credit can offset the ACH fees, which further drives down the cost.

So, to answer your question...your bank doesn't directly charge Citibank. But, both banks are charged some small fee for processing the transaction through the Fed.