Skip to main content

Had a Check Bounce? Here's How to Minimize the Damage

LOS ANGELES - January 22, 2021 - (Newswire.com)

Having a check bounce happens to the best of us, although the result can be painful. Luckily, one overdraft doesn't have to be a big deal if you know how to handle it.

Keeping a cushion in your checking account can help you avoid overdrafts. Obviously, the best way to avoid a bounced check is to simply not write the check if the money's not there to cover it. If you've already written a bad check, read on to figure out how to bounce back fast.

Minimizing the damage of bounced checks

Customer relationships with retail stores, supermarkets, and utilities companies can be sorely affected by bounced checks. If you find yourself in a position where you've unintentionally overdrafted your account, there are certain steps you should take.

  1. Contact Your Bank: Always contact the bank first, especially if there's still a chance the recipient of your check doesn't know it's bounced yet. The bank may be able to put a hold on the check or offer overdraft protection so you can cover it.
  2. Contact the Recipient: If you're unable to resolve the situation with the bank, contact the recipient and give them advance notice that the check could bounce. Explain the situation and apologize, then move on to step #3.
  3. Make Arrangements to Cover the Check: If you purchased a product with your check and can't afford to cover it, return the item. Otherwise, make arrangements to pay off what you owe. Many merchants will work with you if you're up front with them.

Some retailers see a large number of bounced checks and may be more reluctant to negotiate. That's why only having one or two bounced checks can be helpful when asking for forgiveness.

NSF Fees, Domino Effect, and Bad Check Databases

You'll likely be charged a fee from your bank for the bounced check. These are known as non-sufficient funds (NSF) fees. They generally range between $25 and $40, depending on the bank. The recipient may also have to pay a fee, so expect that to get passed on to you.

Be proactive when it comes to NSF fees. Reaching out to your bank and informing them of the mistake can help prevent it from having a ripple effect on future financial transactions.  

When negotiating repayment, ask if the recipient reports to any bad check databases. Examples of this are Telecheck and ChexSystems. If this is a first-time instance for you, the recipient may be willing to waive the report to preserve your check-cashing privileges.  

One of the best ways to avoid bounced checks is by applying for a debit card. If you don't have one already, contact your bank to find out what you need to do to get one, and you may never have to worry about a bounced check again.




Press Release Service by Newswire.com

Original Source: Had a Check Bounce? Here's How to Minimize the Damage
Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.