Bounced Check? Why Checks Bounce and What Happens Next

A bounced check happens when a bank can’t process a check and returns it unpaid. Common reasons include insufficient funds, closed accounts, signature problems, or stop payments. If this happens to you, contact the recipient immediately, deposit money to cover it, and switch to a more reliable payment method. Both parties get hit with fees, so preventing bounces protects everyone involved.

6 Main Reasons a Check Bounces

Checks can bounce for several reasons, and understanding them helps avoid costly mistakes. Here are the six most common causes.

1. Not enough money in the account

When someone writes a check for $500 but only has $200 in their account, the bank rejects it and returns it. This is the most common reason checks bounce.

Banks call this NSF, which stands for "non-sufficient funds." They don't care if the person thought they had enough money. They check the actual balance when the check gets processed, which could be days after it's written.

The person who wrote the check gets charged an NSF fee. These typically range from $27 to $35 per bounced check. Some banks charge even more.

This happens more often than people think. Someone writes three checks on Monday. They all clear on different days throughout the week. The first one goes through fine. The second one drains the account. The third one bounces even though there was enough money when it was written.

2. The account doesn't exist or is closed

Sometimes people write checks from old accounts they closed months ago. They forget they still have blank checks lying around in a drawer. Scammers also write checks from completely fake accounts that never actually existed.

Banks typically take two to five business days to discover that an account doesn't exist. During this time, common scenarios include:

• College students who close their local bank account when moving discover old checks months later and accidentally use one.
• Scammers create realistic-looking checks with fake routing and account numbers that seem legitimate until verified.
• People forget which account they closed and use checks from the wrong checkbook, even though they have money elsewhere.
• Banks figure out the account can't be located, and the deposited funds suddenly disappear nearly a week later.

The person who deposited the check sees the money in their account and assumes it cleared. Then, days later, it vanishes, and they're hit with fees.

3. A “stop payment” was placed on the check

The person who wrote the check can call their bank and put a "stop payment" order on it. This tells the bank not to process that specific check. The bank will reject the deposit if someone tries to make it.

People do this if they lose a check and don't want someone to find it and cash it. Others place stop payments after having a dispute with the person they gave it to. Sometimes they just realize they made a mistake.

Stop payments cost money, too. Most banks charge around $20 to $35 just to place one. That's why most people only do this when absolutely necessary.

Someone might write their landlord a $1,500 rent check, then discover a major leak in their apartment that the landlord refuses to fix. They could place a stop payment on that check as leverage to get the repairs done. The landlord can't cash the check until the problem gets resolved.

Stop payments only work if they're placed before the check gets processed. Once the money has already moved from one account to another, it's too late. The transaction is complete.

4. Signature problems or missing endorsements

If the person who wrote the check didn't sign it properly, the bank will reject it. The same thing happens if the recipient forgot to endorse it on the back before depositing.

Banks are particular about signatures matching the ones they have on file. Sometimes checks get rejected because the signature looks different from usual. This happens especially with elderly people whose handwriting has changed over the years.

A newlywed who changed their name might sign a check with their new married name. But the bank still has their maiden name on file. The check bounces even though there's plenty of money in the account. The signature just doesn't match what the bank expects.

Mobile deposit has made endorsement issues more common. People photograph the front of the check but forget to flip it over and sign the back before taking a picture. The deposit gets rejected automatically. The app usually sends a notification explaining what went wrong, but by then, the person has already wasted time trying to deposit it.

5. The written amount doesn't match the number

When someone writes a check, they put the amount in numbers ($150.00) and spell it out in words (one hundred fifty dollars). If these don't match, banks will usually reject the check rather than guess which one was meant.

Most banks default to the written-out amount if there's a small discrepancy. But it's safer to void the check and write a new one than hope the bank interprets it correctly.

Someone rushing to pay their gardener might write "$120.00" in the number box but spell out "one hundred and fifty dollars" because they were thinking about a different payment. The bank sees this mismatch and refuses to process it. The gardener has to come back for a new check.

6. The check is old or postdated

Most checks expire after six months. Banks can refuse to cash anything older than that. If someone finds an old check in their desk drawer from a year ago, the bank might not accept it.

Some people try to postdate checks. They write a check on November 15th but date it December 1st because payday isn't until then. They're hoping the recipient won't deposit it until after that date. But this strategy rarely works anymore.

Most banks process checks immediately, regardless of the date written on them. They see December 1st written on a check deposited on November 20th, and they process it anyway. If there's not enough money in the account on November 20th, it bounces.

What Happens When a Check Bounces

The consequences hit fast and hit everyone involved. Here's how the financial damage spreads once a check bounces.

Banks charge fees to everyone involved

The person who wrote the check gets charged an NSF fee by their bank. These usually range from $27 to $35. Some banks charge as much as $40. But the person who deposited the bad check also gets penalized.

Here's how the fees break down for both parties:

• Check writers pay an NSF fee of $27 to $35 to their bank for insufficient funds.
• People who deposited the bad check are charged a returned deposit fee of $12 to $20, even though they did nothing wrong.
• Some banks cap NSF fees at three per day, while others have no limits at all.
• Banks display funds as available within 1-2 days, but don't actually clear checks for 5-7 days.

This feels incredibly unfair to the person who received the bad check. They didn't cause the problem, yet they're losing money because of someone else's mistake. Some banks will waive this fee once or twice if the person calls and explains what happened. This works exceptionally well for customers with a solid account history who rarely have problems.

Accounts can go negative from reversed deposits

Someone deposits a $400 check on Monday. By Wednesday, it shows up in their account. They pay their electric bill and buy groceries. Then on Friday, the bank reverses the deposit because the check bounced.

Suddenly, their account is negative. The $400 they thought they had is gone. The money they already spent puts them in the red.

This triggers overdraft fees in addition to the returned check fee. One bad check can trigger four to five different fees within 24 hours. Many people don't even realize what's happening until their card is declined at the grocery store.

This cascading effect destroys people financially. They deposited one bad check and now owe the bank $200 in various fees. They have to scramble to deposit more money just to get their account back to zero.

Merchants and landlords add their own penalties

If the check was for rent or a business payment, the recipient may charge an additional fee. These typically range from $20 to $40 for a bounced check. That $100 check someone wrote just cost them $150 or more in total fees.

The damage extends well beyond that initial penalty. Here's what happens next:

• Utility companies and stores refuse future check payments, forcing you to use cash or money orders only.
• Landlords can start eviction proceedings immediately for bounced rent checks, according to most lease agreements.
• Grocery stores report bounced checks to verification systems like TeleCheck that block check privileges across their entire network.

A $1,200 rent check becomes $1,285 after adding the $35 bank fee and $50 landlord penalty. One bounced check at a grocery store gets reported to the database, and suddenly, you can't write checks at any participating retailer for years. The consequences last far longer than the initial financial hit.

Banking reputation takes a hit

Bounce too many checks, and banks report the person to ChexSystems. This is a database that tracks people with banking problems. It's like a credit report specifically for checking accounts.

Once someone is in ChexSystems, other banks can see their history when they try to open new accounts. This makes it extremely difficult to open checking accounts for the next five years.

Someone who bounces 3-4 checks in six months might get reported. When they try to open a new account at a different bank, they get denied. The new bank pulls their ChexSystems report and sees the bounced checks. Most mainstream banks automatically reject anyone with a ChexSystems record.

This forces people into "second-chance" banking accounts. These accounts charge monthly fees of $10 to $15. They have no overdraft protection. They offer limited services. People end up paying extra just to have basic banking because of mistakes they made years ago.

Fees Associated With Bounced Checks (And How to Dodge Them)

The fees add up quickly, but there are ways to minimize the damage. Here's what to expect and how to fight back.

NSF fees from the bank

Banks charge $27 to $35 every time they reject a check someone wrote because there's not enough money. If someone writes three checks that all bounce on the same day, they could rack up $100 or more in fees.

Some banks cap NSF fees at three per day. Others don't have limits at all. Someone could theoretically bounce ten checks in one day and get charged $350 in NSF fees.

Returned deposit fees

Banks charge $12 to $20 when someone deposits another person's bad check. This is especially frustrating because the depositor was the victim, not the person who caused the problem.

The good news is that many banks will work with you on this. Calling immediately and explaining the situation often results in a waived fee. Try something like "I deposited a check from someone else that bounced through no fault of my own. Can you waive the fee this time?"

Banks often say yes, especially for customers with good account history. The worst they can say is no. Many banks have policies that allow 1-2 fee waivers per year for good customers, so it's worth asking nicely and persistently.

Merchant fees

Utility companies, landlords, and stores can charge $25 to $40 in addition to the bank's NSF fee. Some states limit how much businesses can charge for returned checks. But many states allow them to charge whatever they want.

These fees are usually spelled out in contracts or posted policies. A lease might say "returned check fee: $50." A utility company might warn customers on its website that bounced payments incur a $30 penalty.

Extended overdraft fees

If an account stays negative for more than a few days, banks charge additional fees. These can be $35 every few days until the balance becomes positive again.

One bounced check can snowball into over $200 in fees if left unaddressed. The initial NSF fee, plus several days of extended overdraft fees, plus the cost to bring the account back to positive.

What to Do If You Accidentally Write a Bad Check

Catching the mistake early can save hundreds in fees and prevent damage to your reputation. Here's how to handle it.

Call the recipient before they deposit it

If the mistake gets caught quickly enough, the recipient may not have had a chance to take it to the bank yet. A quick phone call can save everyone time, money, and hassle.

Be honest and direct about what happened. Here's the best approach:

• Offer to pay with cash, Venmo, or Zelle instead so they don't waste time depositing a check that will bounce.
• Say something simple like "I made a mistake with my account balance, and that check I gave you won't clear. Can I pay you another way?"
• Most people respond well to honesty and appreciate being informed rather than discovering it themselves after depositing.
• The contractor avoids wasting time with a deposit that will reverse, and the check writer avoids NSF fees and reputation damage.

Admitting the mistake upfront shows responsibility. Letting them discover it themselves after depositing it damages trust and makes them question whether to do business with you again.

Deposit money into the account right now

If the check hasn't been processed yet, getting money into the account could save everyone from the bounce. Checks can take one to three business days to process. There might be a small window to fix this before it becomes a problem.

Someone writes a check on Monday afternoon and realizes their mistake on Tuesday morning. They can transfer $300 from savings immediately. It might post before the check clears on Wednesday.

Many banks offer instant transfers between your own accounts. Take advantage of this to resolve the issue before it becomes costly. Online banking and mobile apps make this easy to do from anywhere.

Contact the bank to see if damage can be stopped

Some banks offer a grace period where funds can be deposited to cover a check that would have bounced. Call and ask if they have any overdraft protection options that could prevent the NSF fee.

Be prepared to pay anyway. But it's worth asking if there's anything they can do to help. Explain the situation honestly and ask what options are available.

Banks sometimes waive NSF fees for long-time customers with a good history who make an honest mistake. They'd rather keep a good customer happy than collect a $35 fee. It costs nothing to ask.

Pay the person back immediately with a different method

Once the check bounces, the original amount plus any fees they got charged are owed. Take responsibility and make it right as quickly as possible.

Don't write another check from the same account. This makes the situation worse. Use cash, a money order, or an electronic transfer instead. Show them the payment went through successfully this time.

The faster this gets resolved, the less damage it does to reputation and relationships. Paying them back the same day shows you take the mistake seriously. Waiting weeks or making excuses destroys trust.

Writing a second check from the same account signals either carelessness or dishonesty. The recipient is unlikely to accept it anyway. They just watched the first one bounce. They're not going to trust another piece of paper from the same account.

Learn why this happened so it doesn't happen again

Most people bounce checks because they either don't track their spending or forget about automatic payments. They think they have more money than they actually do. Preventing future bounces requires building better systems.

Here are the most effective ways to avoid bouncing checks:

• Set up low balance alerts so the bank sends a text when the account drops below a certain amount, providing a warning before hitting zero.
• Link a savings account to a checking account for overdraft protection, which automatically transfers funds and charges $10 to $12 instead of the $35 NSF fee.
• Check the actual balance before writing every check using free banking apps that show real-time balances, rather than relying on memory.
• Set up alerts for balances under $500 to receive a warning before they get close to zero, which prevents most accidentally bounced checks.
• Look into budgeting apps to help you keep track of your finances and your available spending.

Someone who bounces checks usually relies on their memory instead of checking their actual balance. They think "I probably have around $400," but actually have $180. Memory is unreliable when it comes to exact numbers.

What to Do If Someone Gives You a Bounced Check

Getting stuck with someone else's bad check is frustrating, but you have options. Here's how to protect yourself and get your money back.

Find out why it bounced before panicking

The first step is understanding what actually went wrong. The bank will explain the reason when they return it. NSF means they didn't have money. An account closed means something fishier might be happening.

Different reasons require different responses. A returned check marked "NSF" might just be poor money management. A check returned with "account closed" or "unable to locate account" suggests either a scam or extreme disorganization.

It's worth documenting everything at this stage. Save the original check, the deposit receipt, and any communication with the person. Take photos of everything in case this ends up in small claims court.

Contact the person who wrote the check

Once you know why it bounced, reaching out gives them a chance to make it right. A straightforward message works best: "The $300 check you gave me on Tuesday bounced. My bank charged me a $15 fee. Can you pay me $315 in cash by Friday?"

Ask them to pay with cash, Venmo, Zelle, or a cashier's check instead of another personal check. Don't accept another check from the same account that just failed.

Most people are embarrassed and want to fix it quickly. Those who make excuses or disappear are revealing their true character.

Charge them for the fees incurred

Beyond the original amount, you have the right to request a refund of the deposit fee the bank charged. Many states allow charging an additional bounced check fee, typically $25 to $40.

Send an itemized list detailing what they owe, including the original check amount and all fees. Someone who owed $200 and was charged a $15 bank fee has every right to ask for a total of $215.

Put the request in writing, even if it's just a text message. "You owe me $200 (original amount) + $15 (bank fee) = $215 total."

Know when to walk away from the money

Sometimes the math just doesn't make sense. A $30 bounced check from a casual acquaintance who's now ignoring messages probably isn't worth pursuing. The $15 bank fee and emotional energy exceed the recovery value.

Large amounts are different. A $1,200 bounced rent check is absolutely worth taking to small claims court if the person won't pay.

Small claims filing fees range from $30 to $100, depending on the state. Spending $75 to recover $50 is a net loss.

Protect against repeat offenders

After someone bounces a check once, their checks are now considered unreliable. The solution is switching to payment methods that can't fail.

Insist on cash, money order, or electronic payment that can't be reversed. If they claim they'll have money in their account in a few days, have them send it electronically once the money arrives. Venmo, Zelle, and cash apps transfer money instantly with no risk of bouncing later.

Most Common Bounced Check Scams

Scammers use bounced checks as their primary tool to steal money. Recognizing these patterns protects you from becoming a victim.

The overpayment scam

Someone responds to an online listing and sends a check for more than the asking price. They claim it was an accident and ask the seller to deposit the check, then wire back the difference.

The check bounces after a few days. The money that was wired is already gone and can't be recovered. Banks make deposited funds available before verifying the check is real, which is exactly how this scam works.

Red flags include overpayment for any reason, urgent requests to wire money back quickly, and buyers who refuse to meet in person.

The fake job offer with a check for supplies

Someone applies for jobs online and receives an offer for a work-from-home position that seems legitimate. The employer sends a check for $2,000 or $3,000 to buy office supplies or training materials. The instructions say to purchase gift cards or wire money to a vendor they specify.

After a week, the check bounces, and the entire operation reveals itself as a scam. The employee is out hundreds or thousands of dollars, and the "company" disappears completely, with phone numbers that stop working and emails that bounce back.

Real employers never ask employees to buy gift cards or wire money as part of their job. Gift cards are the preferred payment method for scammers because they're untraceable and irreversible. Once those codes get sent, the money is gone forever.

The apartment rental deposit scam

A fantastic apartment appears for rent at a suspiciously low price on Craigslist. It's a two-bedroom in an excellent neighborhood for half the market rate. The listing looks professional with nice photos.

The landlord says they're out of town but happy to rent sight unseen. They request the deposit via check, then send a check back for moving expenses. The instructions say to wire most of it to the "moving company" they recommend. The tenant deposits the check, then wires $1,500 to the movers.

A week later, the check bounces, and the entire scheme falls apart. Both the apartment and the check were fake from the start, and the $1,500 wired to the fake moving company is gone forever with no way to recover it.

Real landlords never send money to tenants. The flow of funds should only go in one direction: from tenant to landlord. Below-market rent is the first warning sign. If it seems too good to be true, it probably is.

The friend who got scammed first

Someone who has been trusted gives a check they received from what they think is a legitimate source. They genuinely believe it's real because the scammer was convincing. When it bounces, they may not even realize they were the victim first, thinking they were just helping out a friend by cashing a legitimate check.

This is why even checks from people we trust can be dangerous if they seem unusual. Honest people accidentally participate in scams without realizing it because they're not trying to cheat anyone. If a friend asks to cash a check or hold money for them, especially if it involves sending money somewhere else, that's a red flag. They might be unknowingly caught in a scam themselves.

How to avoid falling for these scams

The common thread in all bounced check scams is receiving money and then sending most of it elsewhere. Recognizing this pattern protects against fraud.

Follow these rules to stay safe:

• Never wire money or send gift cards based on a recently deposited check until at least ten business days pass for full clearance.
• Return any check where someone overpaid and ask them to send the correct amount instead of depositing it and sending back the difference.
• Verify job offers by calling the company directly using a phone number found independently on their official website, not one the supposed employer provided.
• Use common sense with transactions that involve receiving money and immediately sending most of it elsewhere, as this pattern appears in almost every check scam.

Real companies can be reached through publicly listed contact information. Legitimate buyers send the exact amount requested, not random overpayments. Money in legitimate transactions doesn't immediately flow back out the door.

Are Checks Being Phased Out Of Our Rich Life?

In 2023, Americans wrote 3.4 billion checks compared to 19.2 billion in 2012. The number dropped by more than 80% in just over a decade. Most people under 30 have never written one, and banks now charge $20 to $30 per box instead of providing them for free.

Checks still have their place in certain situations. They work well for:

• Paying landlords who want to avoid app fees and need paper documentation.
• Sending money to older relatives who don't use Venmo or other payment apps.
• Getting official records for contractor payments or large deposits that require proof.
• Creating natural spending friction for people who spend more intentionally with physical checks.

Everyone else switched to Venmo and Zelle for splitting bills, online bill pay for utilities, and debit cards or Apple Pay for daily purchases. These methods are instant, free, and eliminate the risk of bouncing days later. If checks help direct money toward Rich Life priorities, keep using them. The payment method matters less than reducing financial stress.