Can You Resubmit a Bounced Check? What Happens Next

A bounced check, also known as a returned check, occurs when a bank cannot process a payment due to various reasons, most commonly insufficient funds in the check writer’s account. While paper checks may be less common today, this issue still arises, affecting both the person who wrote the check and the person who tried to deposit it.

Understanding Check Resubmission

A bounced check can often be redeposited. Banks frequently permit a check to be presented again, especially if the initial issue was due to a temporary lack of funds.

Checks can bounce for several reasons beyond just insufficient funds. These can include a stop payment order placed by the check writer, a closed account, or discrepancies in the signature. Errors in how the check is filled out, such as an incorrect date or a mismatch between the numeric and written amounts, can also lead to it being returned.

Bank policies on resubmission attempts can vary. Some banks might automatically try to process a check again if it initially bounced due to insufficient funds, often within a few business days. Other banks may require the check receiver to manually resubmit the check. A check receiver may be permitted to resubmit a bounced check multiple times, but standards vary among financial institutions.

While resubmission is often possible, it does not guarantee payment. The underlying issue that caused the check to bounce must be resolved for a successful second attempt. For example, if the account still lacks sufficient funds, the check will likely bounce again. Financial institutions have specific guidelines on how many times they will attempt to process a returned item before deeming it uncollectible.

Implications for the Check Writer

Writing a bounced check carries several financial consequences for the individual who issued it. The most immediate impact is a Non-Sufficient Funds (NSF) fee charged by their bank. These fees can range from approximately $20 to $35 per bounced check and quickly accumulate if multiple checks are returned.

Beyond the NSF fee from their own bank, the check writer may also incur fees from the recipient’s bank. The recipient’s bank often charges a returned deposit item fee, which could then be passed on to the check writer. Repeated instances of bounced checks can negatively affect the check writer’s banking relationship, potentially leading to the bank closing their account. Account closure can make it difficult to open new banking accounts elsewhere.

In addition to financial penalties and banking relationship issues, writing a bounced check can have more serious implications. If a check is written with fraudulent intent or if there is a pattern of issuing bad checks, the check writer could face legal action. Depending on the check amount and circumstances, this could range from a misdemeanor to a felony charge.

Steps for the Check Receiver

When a check you deposited bounces, your bank will notify you, often via mailed notice, online banking alert, or phone call. This notification explains the reason for the return, such as insufficient funds or a stop payment order. Upon notification, your bank will charge you a returned deposit item fee, which can range from $10 to $25.

After receiving notification, a practical first step is to communicate with the check writer. It is important to understand why the check bounced and to determine if funds are now available or will be soon. This conversation can help you decide whether resubmitting the check is a viable option. If the check writer confirms that funds are now in the account, resubmitting the check might be successful.

If resubmission is not feasible or successful, or if you prefer an alternative, request a different form of payment. Acceptable alternatives include a cashier’s check, a money order, or an electronic transfer, which offer more assurance of funds. Cashier’s checks and money orders are prepaid or guaranteed by a financial institution, reducing the risk of another bounce. For larger amounts, if direct communication and alternative payment requests are unsuccessful, pursuing legal avenues such as small claims court may be an option. This process involves filing a claim to legally compel payment, but requires understanding local court procedures and may incur additional costs.