We have an MSB customer that requires a lot of cash on a regular basis. We are comfortable with the operation. Due to the cash demands of the MSB customer we added a 3rd cash deliverys to the branch each week. Management would like to pass the cost of the 3rd delivery on to the customer by increasing the standard MSB flat fee we charge from $100 to $950 per month. All MSB customers currently pay $100 flat fee and then analysis fees based on transaction volume. I am worried that charging nearly 10 times the flat fee to just this customer might cause us issues with regulators. However, we can't make money if we absorb the cost of the 3rd delivery and we are in business to make money. Any thoughts?

Yeah, don't charge flat fees for these types of customers. Or at a certain point, their fees become negotiable based on the characteristics of their business and servicing needs.

There are no fair deposit laws, so charge for your costs and services as you deem appropriate.

Banks discriminate all the time. It's allowed. We give people with better credit ratings a better deal. We pay people who maintain larger balances higher interest rates. The only restriction is that we cannot treat people differently based on a "prohibited basis;" e.g. race, gender, etc.

This customer costs you more money than your other customers do. If you do not charge him accordingly it's the other customers whom you are discriminating against. (Your management's ability is also suspect.)

Do not make a fee schedule for this customer. Make up a fee schedule that would apply to any customer whose activity is like this one.

They create the demand - they pay the fee. Pretty simple to me.

Oh yeah, show him the fee schedule before you implement it. There is some possibility he will leave. Either way, problem solved.

There are some customers that would make your bank more profitable when they left. Finding them is an accomplishment.

...credit, only.

Naaaah. Statutory protection or not, a bank cannot refuse to open an account for a woman wearing a hajib on that basis alone. You can't even charge her more.

Oh well, I guess you could, but plan on kissing your --- goodbye.

Thank you all for the input! I will see if there is a fee structure that I can put together that applies to anyone in a similar situation, just to be on the safe side. But really, in the end the other option is to not bank them.

I should have added that what is "legal" isn't always ethical or good for business.