R5: Treasury fees are one of the most overlooked costs for mid-sized enterprises
R5 Cost Reduction released an analysis stating that most mid-sized enterprises have not benchmarked treasury and banking fees, leading to overpayments of 10% to 30%. Through thousands of client engagements, the company found that treasury fees are one of the most frequently overlooked sources of excess spending in mid-sized organizations. R5 identified five common issues, including excessive per-transaction fees, uncompetitive foreign exchange spreads, outdated account structures, hidden monthly maintenance fees, and charges for unused services. The company recommends optimizing fees through data-driven negotiations without the need to switch banks.
Treasury Fees: The Cost Black Hole Most Overlooked by Mid-Sized Enterprises
CHARLESTON, S.C. — According to an analysis by R5 Cost Reduction, most mid-sized enterprises have never benchmarked their treasury and banking fees against the market. The firm points out that this oversight causes these companies to overpay by 10% to 30%.
In thousands of client engagements, R5 has found that treasury fees are one of the most consistently overlooked sources of excess spending in mid-sized organizations. These overcharges may not be alarming on a single bill, but they accumulate significantly over time.
Where Overcharges Hide
R5 has identified five recurring issues in nearly every treasury fee review:
- Excessive per-transaction fees.Companies processing high volumes of ACH, wire, and check transactions often still pay rates set years ago and have never renegotiated.
- Uncompetitive foreign exchange spreads.Foreign exchange margins are rarely benchmarked. Banks set spreads based on their judgment of client acceptance, not on market levels.
- Outdated account structures.As companies grow, add locations, or change their transaction mix, their account configurations often fail to keep pace, resulting in fee structures tailored to business models that no longer exist.
- Hidden monthly maintenance fees.Recurring charges for account maintenance, reporting, and platform access are often viewed as fixed operating costs and therefore rarely questioned.
- Fees for unused services.Legacy services added during account opening or previous treasury reviews continue to generate fees long after they stop providing value.
Why These Fees Go Unchallenged
"Banks won't proactively tell you that you're overpaying," said Matt Cauller, CEO and co-founder of R5 Cost Reduction. "Their pricing is opaque, and it's not meant to be transparent. Most mid-sized enterprises have never benchmarked their treasury fees because they can't access the data, and banks won't offer it voluntarily."
Cauller notes that many finance leaders are reluctant to negotiate bank pricing because the relationship extends beyond treasury services. Factors such as credit lines, investment accounts, and loan arrangements make companies worry that fee negotiations could jeopardize other aspects.
"That concern is understandable, but it's almost always overestimated," Cauller said. "We're not asking clients to switch banks. We analyze the fee structure, compare it to proprietary market data, and present a data-backed case to the bank. In most cases, banks would rather adjust pricing than risk losing the entire relationship."
R5's Approach to Treasury Fee Optimization
R5 takes a hands-on approach, starting with a detailed analysis of the client's 12-month bank fee statements. The firm compares each fee item against proprietary market data, identifies overcharges and misaligned fee structures, and then negotiates directly with the bank on behalf of the client.
The process is designed to preserve existing banking relationships. Unless the client requests it, R5 does not recommend switching providers. Most treasury fee review projects are completed within 90 days and require minimal time from the client's finance team.
R5 operates on a success-based fee model with no upfront costs, no retainers, and zero risk to the client. The firm only shares in verified savings that are directly reflected on the client's bills. If R5 finds no savings, the client pays nothing.
Beyond Treasury Fees
Treasury fees are one of more than 40 indirect spend categories that R5 optimizes for mid-sized and multi-location enterprises in the U.S. and Canada. Other categories include wireless communications, utilities, waste removal, merchant services, freight and logistics, payroll processing, property taxes, laundry and uniforms, maintenance agreements, and cloud infrastructure.
About R5 Cost Reduction
R5 Cost Reduction is a professional services firm headquartered in Charleston, South Carolina, helping finance leaders in the U.S. and Canada reduce indirect operating costs without disrupting supplier relationships or service quality. Founded by industry veterans, the firm has a proven track record of verified savings in the billions of dollars. R5 operates on a success-based fee model with no upfront costs and zero risk to the client. For more information, visit aboutR5.com.
