The Bank of Bermuda HSBC<\p>has defended its decision to hike up a number of its fees and charges in its new tariff schedule launched this month.

Most notably the fee for cheque cashing for non-customers has been increased from no charge to $20 per item [EmDash] costing some people more than the value of their cheques just to cash them.

The main changes have been in local payments with cashiers cheques ordered manually on bank stationary rising to $15 from $10, and overseas payments with drafts ordered manually on bank stationary also up $5, from $10 previously to $15.

Drafts ordered manually on bank stationary have more than doubled to $25 from the prior charge of $10.

Outgoing wires ordered manually on bank stationary have also increased to $40 from $35 and international incoming wires to $6 from no charge previously, with a host of transaction fees on the rise from cheque writing (previously 50 cents, now 75 cents), returned cheque fees ($30 per item up to $50 per item), and inward dishonour fees for returned cheques (no charge to $20 per item).

Elsewhere, lock and key replacements have risen to $120 per box from $100 per box, while account service research is up to $50 per hour from $35 per hour.

Meanwhile the charge on cash advances has climbed to 2.5 percent per transaction (minimum of $2.50) from 1.5 percent per transaction, as have debit card foreign cash withdrawals by the same amount.

But some tariffs have gone down, most notably outgoing wires via personal Internet banking to $12.50 from $20, dormant account fees to $40 per year from $10 per month, home equity line of credit annual fee to no charge from $250, and debit card fees to no charge from $20 per year before.

Additionally, there are still no charges on payment to other local banks via personal Internet banking.

These figures are higher than Butterfield Bank in terms of returned cheque fees ($35 for return cheques at Butterfield), but lower versus Butterfield and Capital G for outgoing wires via personal Internet banking for overseas payments ($25 for outgoing foreign currency transfers from an account via Butterfield Direct Internet banking, $30 for outgoing wires sent overseas at Capital G) and dormant account fees ($6 per month for an amount under $2,500 at Butterfield, $5 per month for savings and chequing accounts under $2,500 and inactive for one year at Capital G).

In a statement released on Friday, HSBC said it implemented the new charges in response to "changing technologies and client activity".

Todd Wilcox, head of personal financial services at HSBC, said the move was the first tariff change in three years and that Bermuda continued to enjoy some of the lowest banking fees in North America.

"The majority of our tariffs remain unchanged while some have increased and some have decreased," he said. "The changes truly benefit the large number of clients who do much of their banking electronically.

"We've removed the debit card annual fee and reduced the personal Internet banking wire fees. Online transfers within HSBC and to the other banks in Bermuda continue to be free."

Mr. Wilcox said the bank had decided to introduce the cheque cashing fee for non-HSBC<\p>customers due to the time and effort taken to verify the person's identity and the cheque in every transaction.

"This increases the risk of cheque fraud and takes additional time at the teller counter which inconveniences HSBC customers," he said. "We invite those affected to open accounts with us so that we can serve them quickly and conveniently and as an HSBC customer there would be no cheque cashing fee."

Over the past year, the bank has launched a number of new services for its client's, including US dollar ATM's, Bancassurance and improved lending processes.

"Our goal is to expand the services available to local residents and to bring the latest technologies to the Island while maintaining fair prices." said Mr. Wilcox.