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Why do dishonour fees exist?
In the United States, many banks aim to receive $ 100 per year per account in fees and interest markup.  There are several ways that they can do this on a checking account.  These examples assume that there is a 3 % difference between low-interest-rate deposit accounts and low-interest rate loans. Or some combination of these markups that adds up to $ 100 / year.  For example:  A two dollar monthly fee = $ 24 / year, plus a $ 2,000 average balance at 0.05% = $ 29 / year, plus $ 250 / month in rewards debit card usage = $ 24 / year, plus $ 2 / month in ATM fees = $ 24 / year. Before it was taken over by Chase Manhattan in 2008, Washington Mutual had a business strategy of offering "free" checking with no monthly fees, no annual fees, and no charges (by Washington Mutual) for using ATMs.  The catch was that the overdraft fees were not free.  If the customers averaged 3 overdraft fees per year at $ 34 each, Washington Mutual reached its markup target for the accounts.