HSBC will start charging a fee of €5 to non-HSBC customers cashing cheques from August 16.

The €5 fee is already applicable for encashment of non-HSBC cheques by non-HSBC customers, but these same customers will now also incur the €5 charge for cashing HSBC cheques.

Non-HSBC customers will also need to wait 48 hours before they receive their funds.

"The purpose for the extension of this fee is to cover due diligence costs when processing payments for persons who are not customers of HSBC," a spokesman for the bank said.

He said existing HSBC Malta customers will continue to benefit from free cheque encashment.

The bank offers alternative electronic methods of payment via its internet and mobile banking applications which are “safer and more convenient to use,” the spokesman said.

The new charge received backlash on Facebook, with many wondering why the extra fee and waiting time was introduced.

Banks have long argued that cash encashment was a pricey service.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.