I dont think it is legal
They cannot give you a checking account, checks to use, and then tell people they have to pay to get the money you have given them through one of those checks
I screamed last time they tried this at my bank - i said this is DRAWN ON YOUR BANK- YOU HAVE TO CASH IT
They “waived” the fee (and never asked me again)
Perfectly legal. Went thru this about five years ago when I went to cash a $200 expense reimbursement check at Wells Fargo and they charged me $5. I pointed out that the instrument instructed them to pay me $200, not $195.
Anyway, looked it up in the banking regs and it’s perfectly legal. Unethical, IMO, but legal.
BTW, it applies only for checks that are cashed, not those that are deposited. Which seems odd.