Why are there fees for debit payments?

I pay my homeowners and auto insurance by bank debit. Same with the loan on one of my automobiles. The payments are scheduled on the same date every month so the insurance company and the bank have no checks to deposit or other paperwork to deal with.

So why am I charged $ 1 to $ 3 for allowing these payments to come out of my bank account? In my opinion, I should be getting a rebate for making it so easy for these businesses to collect their payment.
Using their logic, I should charge my employer a couple of bucks a week for allowing him to direct deposit my paycheck.

Can anyone explain these ridiculous charges to me?
Okay. So why doesn’t the insurance company eat the charge? I can stop the debit payments, mail them a check and let them process it; that’ll cost them a lot more than the debit payment.
And what about the bank? They’re charging me $ 2 to take the money out of my account. They’re not paying a 3rd party.

Register New Account
Reset Password