The fees are high largely because of fraud. Both directly (cover the costs of actual fraud) and indirectly (channel consumers to using other methods that leave

The fees are high largely because of fraud. Both directly (cover the costs of actual fraud) and indirectly (channel consumers to using other methods that leave the bank less exposed). Wire transfers are tailored for businesses sending large amounts of money. If the bank has reason to trust you (e.g. wealthy client), you can often work with the bank to reduce or eliminate wire transfer costs. Transactional banking law has evolved over the centuries to leave the retail bank holding the bag for fraud. That's because they're the least cost avoider (i.e. the agent best placed and most skilled to minimize fraud). But it also means they're highly sensitive to these issues, and are reticent to expose themselves unless they've arranged recourse in case of fraud. Newer methods of transferring money seem cheaper only if you discount the cost of fraud. Nobody factors the billions of fraudulent Bitcoin transactions into the cost of Bitcoin, even though a stolen ATM password or account number is exactly analogous to a stolen Bitcoin wallet password or online account. If Bitcoin miners were legally made liable for fraudulent transactions (as banks are for unauthorized use of stolen credentials), you can bet the cost of Bitcoin transactions would skyrocket. Fast, automated payment and money transfer mechanisms are unfathomably attractive to criminals.