Can anyone explain to me what are "referal fees" and what the Banks do for them? I can understand going in and buying a pound of butter but referal fees baffle me!!!
If the bank honours a cheque drawn on a current a/c such that the honouring of the cheque causes the account to be overdrawn or to exceed an agreed overdraft limit the account incurs a referral item fee. Surcharge interest will more than likely also be applied and it wouldn't be cheap ! You will find some details on the IFSRA site re current account cost surveys.
I think it refers (pardon the pun) to the fact that someone had to actually refer to the account and make a decision whether or not to allow the transaction. I may be corrected on that.