How Much Is the Fee for a Bounced Check?

A bounced check, also known as a non-sufficient funds (NSF) check, occurs when a check is presented for payment without enough funds in the account. This can lead to various fees and financial consequences, making it important to understand these potential costs.

Your Bank’s Fees

When a check you have written bounces, your financial institution typically charges fees. Two common types are Non-Sufficient Funds (NSF) fees and Overdraft (OD) fees. An NSF fee is assessed when your bank declines to pay a check or other transaction due to insufficient funds and returns the item unpaid. In contrast, an overdraft fee occurs when your bank covers the transaction despite insufficient funds, causing your account balance to go negative. Average overdraft fees can range from $10 to $40, with a typical amount being around $35 per occurrence, though some online banks may charge less or no fees.

Some banks also charge “re-presentment” fees. This occurs when a merchant re-submits a check or Automated Clearinghouse (ACH) transaction after initial decline. Each re-presentment and decline may incur an additional NSF fee. Despite Federal Deposit Insurance Corporation (FDIC) guidance, some institutions still charge multiple fees for the same re-presented transaction.

Many large banks have reduced or eliminated NSF fees. A new Consumer Financial Protection Bureau (CFPB) rule in October 2025 is expected to cap overdraft fees at $5 or less for certain large banks. Until then, traditional banks may still charge an average overdraft fee of $33.40.

Payee and Third-Party Fees

Beyond your bank’s fees, the person or business who received the bounced check, known as the payee or merchant, can also charge a fee. Most states allow merchants to charge a returned check fee, often capped by state law. These fees typically range from $20 to $40, with $30 being common. For example, Illinois limits charges to $25 or actual costs, and New York sets a $15 limit.

The payee’s bank may charge them a fee for processing a returned item, which the payee might pass to the check writer. Some payees may also seek a “collection fee” if they pursue payment after the check bounces. A single bounced check can result in multiple fees from different parties, significantly increasing the total cost.

Wider Financial Implications

Bounced checks have wider financial implications beyond immediate fees. Repeated instances can lead to your bank closing your account. A history of bounced checks can also make it difficult to open new bank accounts elsewhere, as financial institutions assess risk based on account activity.

Your banking history, including bounced checks, is often reported to consumer reporting agencies like ChexSystems. A negative ChexSystems record can hinder your ability to open new bank accounts for up to five years. If a bounced check results in unpaid debt sent to collections, this debt can be reported to major credit bureaus, potentially affecting your credit score. Intentionally writing a check without sufficient funds can also lead to legal ramifications, from misdemeanors to felonies depending on the amount and jurisdiction.