If a Check Bounces, Can You Cash It Again?
Received a bounced check? Get clear answers on re-depositing, potential fees, and the best steps to secure your payment.
Discovering a check has “bounced” can be frustrating. This means the check cannot be processed, leaving the recipient without the expected funds. Understanding the reasons behind a bounced check and the steps to take afterward is important for anyone encountering this situation.
Understanding a Bounced Check
A bounced check, also known as a returned check or non-sufficient funds (NSF) check, occurs when a bank cannot honor a check presented for payment. This happens because the account lacks the necessary funds to cover the amount. The bank then returns the check, preventing the transfer of money.
Several factors can lead to a check bouncing. Most frequently, it is due to insufficient funds, where the account holder does not have enough money. Another reason can be an account closure, meaning the account linked to the check is no longer active. A stop payment order, initiated by the check writer, will also cause a check to be returned.
Less common, but still possible, are issues such as a signature mismatch, where the signature on the check does not align with the bank’s records, or errors in how the check was filled out, like incorrect amounts or dates. Checks that are post-dated (dated for a future time) or stale-dated (over six months old) can also be returned by the bank.
Re-Depositing or Re-Cashing a Bounced Check
After a check bounces, re-depositing or re-cashing it is often possible, particularly if it bounced due to temporary insufficient funds. Banks often permit multiple attempts, with some allowing up to three re-deposits for checks returned due to non-sufficient funds. This can be a viable option if the check writer indicates that funds have since become available.
However, re-depositing is not always advisable or successful. If the check was returned because the account is closed or a stop payment order was issued, re-depositing the check will not resolve the issue and it will bounce again. Each re-deposit attempt can lead to additional fees for both the recipient and the check writer. Before re-depositing, communicate directly with the check issuer to understand the reason for the initial bounce and confirm that the issue has been rectified.
Actions to Take After a Bounced Check
Upon discovering a check has bounced, the recipient should immediately contact the check issuer to understand the reason for the return. It is also important for the recipient to review their own bank statements for any returned item fees their financial institution may have charged due to the bounced check. These fees can range from approximately $17 to $20.
Once the reason is clear, the recipient should request an alternative payment method from the issuer that is more secure. Options such as cash, a money order, a certified check, or a wire transfer can ensure the funds are received without further complications. Documenting all communications, including dates, times, and details of conversations, along with any fees incurred, is important. This documentation provides a clear record should further steps be necessary to recover the payment.
Financial Consequences for the Check Writer
The individual who writes a bounced check faces several financial repercussions. Their bank will typically charge a Non-Sufficient Funds (NSF) fee, a penalty for not having enough money. These fees can range from about $17 to $20 per occurrence. If the bank decides to cover the transaction despite insufficient funds, it may charge an overdraft fee instead, which averages around $27 to $35.
Beyond these bank fees, the check writer may also incur additional charges from the recipient. Repeatedly bouncing checks can negatively impact the check writer’s banking relationship. Banks may view frequent occurrences as a risk, which could lead to account restrictions or, in severe cases, account closure. This could make it difficult to open new accounts in the future.