If your bank credited your account for a check that was later returned unpaid for insufficient funds, the bank can reverse the funds and may charge a fee. As the payee, you must pursue the maker of the check if you wish to seek reimbursem*nt.
A tip that can help avoid this scenario: Use caution when accepting a check from someone you don't know.
Last Reviewed:April 2021
Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on HelpWithMyBank.gov should not be construed as legal advice or a legal opinion of the OCC.
FAQs
What happens if I deposit a check that bounces? If you deposit a check that doesn't clear, you won't be charged an NSF or overdraft fee, but you might have to pay a returned check fee. In addition, it's your responsibility to recoup payment from the check writer.
Am I responsible for a bounced check? ›
Since it takes the bank a few weeks to tell you that a recently cashed check has bounced, you may have already spent the money, and that means that you are consequently completely responsible for it.
What happens if someone writes you a bad check and you deposit it? ›
You may be responsible for repaying the entire amount of the check. While bank policies and state laws vary, you may have to pay the bank the entire amount of the fraudulent check that you cashed or deposited into your account. You may have to pay overdraft fees.
Who pays the fee if a check bounces? ›
When there are insufficient funds in an account, and a bank decides to bounce a check, it charges the account holder an NSF fee. If the bank accepts the check, but it makes the account negative, the bank charges an overdraft fee.
What happens if a check is returned for insufficient funds? ›
When you write a check and there's not enough funds in your account when it's presented, this is considered non-sufficient funds (NSF). When a check is returned due to NSF, it's returned to the payee that deposited the check, at their bank. This allows them to redeposit the check at a later time, if available.
Can you get in trouble for depositing a check that bounces? ›
An average bounced check caused by not having enough funds in a checking account likely won't lead to criminal charges. However, in some states, writing a bad check (especially one that exceeds a specified dollar amount) can be considered a felony, lead to jail time, and result in paying thousands of dollars in fees.
What happens if your employer gives you a check that bounces? ›
Your employer is required to have enough money in the bank (or a credit arrangement) to cover your paycheck for 30 days after the date it is issued. If your employer's check bounced, and you attempted to cash or deposit the check within 30 days of receiving it, you can collect a penalty from your employer.
How long after deposit can a check bounce? ›
Checks typically take two to three business days to clear or bounce. At this point, the bank has either received funds from the check writer's bank or discovered that it will not receive those funds. If the money is transferred without problems, the check has cleared.
How much is a check bounce back fee? ›
A returned check fee (also called a bounced check fee) is a cost that must be paid when a payment made by check can't go through or bounces. Writing a bad check can cost anywhere between $35 to $70. However, as the receiver of the check, you generally don't have to worry about paying any of the returned check fees.
What is bouncing check law? ›
BATAS PAMBANSA BLG. 22 AN ACT PENALIZING THE MAKING OR DRAWING AND ISSUANCE OF A CHECK WITHOUT SUFFICIENT FUNDS OR CREDIT AND FOR OTHER PURPOSES.
A returned check fee (also called a bounced check fee) is a cost that must be paid when a payment made by check can't go through or bounces. Writing a bad check can cost anywhere between $35 to $70. However, as the receiver of the check, you generally don't have to worry about paying any of the returned check fees.
Will a bounced check affect my credit score? ›
The collection agency may then report your unpaid debt to the credit bureaus, damaging your credit score. But if you immediately deposit enough money to cover the bounced check, the bank will not send your account to collections and the bounced check will not affect your credit score.
