Key Bank Charging people too much to cash a check that I wrote. Internet

Here's what happened.

I wrote a check to a guy for $35, for some yard work he did at my house.  He drove into town (10 miles) to cash the check at my bank, only to discover that they charged him $7 to cash the check!!!  That's like a 20% charge!  

I was shocked!  This means that the bank is forcing me to write a check for $7 MORE.  essentially charging me to write a check!!!  Its completely bonkers!   

Now, I've always thought that a bank is bound by law to honor the amount I write a check for if the funds are available in the account, regardless of the amount of money he has in his pocket. Is that no the agreement you have and the reason for opening a checking account?

When I brought this up with the bank their excuse was that he could have deposited this check into his account at his bank free of charge.  Unfortunately, his bank is further away and the poor guy just needed some money. 

So already he was out the gas money to get to the bank and back ($5) plus their fee ($7)  If you do the math that is horrible for a guy just trying to cash a check for $35. There is something WRONG.