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Qbert, then why is there never a problem to deposit US checks in Canadian banks? Our check codes are different too. Are our banks offering more efficient service, or extending a courtesy to their customers without the excessive fees? In 15+ years of accepting US checks and money orders, I have never once been assessed a fee to deposit a US check to my Canadian Bank.
One would assume that amount of business that occurs daily between Canada and the US, the very least US banks could do is make it less prohibitive for US customers to deposit Canadian checks. $40 check cashing fee is just robbery for those that have to endure it -- you may as well get wires if it costs you that much.
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NSFW
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