A returned check is a check the paying bank refused to honor when it was presented for payment, most often because the writer’s account didn’t hold enough money to cover it. The bank sends the item back unpaid, and both the person who wrote it and the person who deposited it can end up with fees. A pattern of returned checks can also lead to civil liability, criminal charges, and trouble opening a bank account later.
Why a Check Gets Returned
Knowing the reason matters, because it decides whether you wait a few days and redeposit, call the writer, or start thinking about a legal remedy.
Not Enough Money in the Account
The most common reason is insufficient funds: the writer’s balance was too low when the check hit. A close cousin is “uncollected funds,” where the writer has deposited money recently but those deposits are still on hold and can’t yet be drawn against. Either way, the paying bank refuses the check and returns it.
Stop Payment, Closed, or Frozen Accounts
A writer can tell their bank not to honor a specific check. An oral stop payment order is typically binding for 14 calendar days; a written order lasts six months and can be renewed. A check drawn on a closed account will always come back. Accounts can also be frozen by court order, for example because of a lawsuit or a tax levy, which stops the bank from releasing any funds.
Problems With the Check Itself
Even a fully funded account won’t help if something is wrong with the paper:
- A missing or irregular signature the bank can’t match to its records.
- A mismatch between the numeric amount and the amount spelled out on the legal line.
- A post-dated check presented before its date.
- A stale-dated check. A bank has no obligation to pay a check presented more than six months after its date, though it may choose to honor it in good faith.1Legal Information Institute (LII). UCC 4-404 – Bank Not Obliged to Pay Check More Than Six Months Old
Suspected Fraud
Banks also return items flagged as forged, altered, fictitious, or counterfeit. When fraud is suspected, the check is typically bounced immediately, and the bank may refer the matter to law enforcement.
Fees on Both Sides
A returned check almost always triggers fees, and they hit both the writer and the depositor. The amounts come from each bank’s account agreement, not from any single federal cap, so they vary.
What the Writer Pays
The person who wrote the check usually gets a nonsufficient funds or returned item fee from their own bank. As of 2025, the average NSF fee at U.S. banks was roughly $27, down from prior years when charges of $30 to $36 were common. Several of the largest banks have eliminated NSF fees entirely, but many mid-size and smaller institutions still charge them.
Regulators have pressed banks to stop stacking those fees when a merchant resubmits the same unpaid item. FDIC guidance says charging multiple NSF fees on the same transaction raises legal concerns, especially where disclosures didn’t clearly explain the practice, and encourages banks to charge no more than one NSF fee per transaction no matter how many times it is re-presented.2FDIC. Supervisory Guidance on Multiple Re-Presentment NSF Fees
What the Depositor Pays
If you deposited someone else’s check and it bounced, your bank may charge a returned deposit item fee. These are generally lower than NSF fees, often around $10 to $20, but they add to a payment you were already counting on and didn’t get. Check your account agreement for the exact figure.
Fees the Payee Can Add
The business or person you wrote the check to may also add a returned check surcharge. State laws set the ceiling, and those caps typically fall between $20 and $40, with some states allowing $50 or $60. Many states also let the payee recover the bank’s service charge on top of the statutory surcharge. Look for the fee on point-of-sale signage or in the contract you signed.
When the Check Gets Sent Through Again
A bounced check isn’t necessarily the end of the transaction. The payee can try again.
One route is electronic. A payee can convert a returned paper check into a Re-presented Check Entry and push it through the Automated Clearing House network, which is faster than mailing the paper back through the clearing system.3Nacha. ACH File Details Under NACHA rules, the payee has to tell you before accepting the original check that it may be electronically re-presented if it bounces.
There are limits. A check returned for insufficient or uncollected funds can be re-presented up to two more times, for a maximum of three total attempts. Resubmissions must be labeled “RETRY PYMT” in the company entry description. A check returned as unauthorized, meaning the account holder disputes ever authorizing it, cannot be resubmitted at all.4Nacha. ACH Network Risk and Enforcement Topics
If you’re the one redepositing a check that bounced the first time, expect a longer wait for the money. Regulation CC exempts redeposited returned checks from the standard funds availability schedule, so your bank can place an extended hold before releasing the funds.5eCFR. 12 CFR 229.13 – Exceptions The exception doesn’t apply if the check was returned only because of a missing endorsement or because it was post-dated, and those problems have since been fixed.
Legal Trouble for the Person Who Wrote It
Writing a check you know will bounce can be a crime and can also be sued over. Which of those you face depends on the amount, your intent, and whether you make the payment good after being notified.
Criminal Charges
Every state makes it a crime to knowingly write a check on an account without funds to cover it. The pivotal element is intent: prosecutors generally have to show you knew the account was short when you wrote the check. Many states create a legal presumption of that knowledge if the bank refuses the check and you fail to pay the recipient within a set window, often 10 to 30 days, after receiving written notice.
Whether the offense is a misdemeanor or a felony turns on the dollar amount. Felony thresholds vary widely, from as low as $25 in one state to over $1,000 in others, with most falling between $100 and $500. A conviction can bring jail time, fines, and a criminal record.
Civil Liability
Even without a criminal case, the payee can sue. Under the UCC, the person who wrote a dishonored check is obligated to pay the face amount to the holder.6Legal Information Institute (LII). UCC 3-414 – Obligation of Drawer Many states go further, letting the payee recover two or three times the check amount, plus court costs and attorney fees, if the writer doesn’t pay after a formal demand letter. The letter is typically sent by certified mail and gives the writer a set period, often 30 days, to make good before suit is filed.
Effect on Your Future Banking
Returned checks can follow you past the fees. Banks report account problems, including repeated NSF activity and involuntary closures, to specialty consumer reporting agencies that track banking history.
ChexSystems is the most widely used. If your bank closes your account over returned checks and reports it, other banks may refuse to open a new account for you. ChexSystems keeps reported information for five years from the date the account was closed. Paying off the balance doesn’t remove the record within that period, but the account status is updated to reflect the payment.7ChexSystems. Frequently Asked Questions
Early Warning Services is another major bank screening agency, jointly owned by several of the largest U.S. banks, and it collects similar data on accounts closed for repeated overdrafts or NSF activity. Both agencies are regulated as consumer reporting agencies under the Fair Credit Reporting Act, so you can request your report, dispute inaccurate entries, and have errors corrected.
The Notice You Get and Your Right to a Refund
When a check you deposited bounces, your bank will usually give you a substitute check, which is a paper reproduction of the front and back of the original. Under the Check Clearing for the 21st Century Act, a substitute check is legally equivalent to the original as long as it accurately represents the original and carries the statement, “This is a legal copy of your check. You can use it the same way you would use the original check.”8Federal Reserve Board. Frequently Asked Questions about Check 21
The item comes with a return reason code. Common ones are “NSF” (not sufficient funds), “Refer to Maker” (contact the writer), “Account Closed,” and codes flagging suspected forgery or alteration. You can use the substitute check as proof of payment or, in this case, as proof that payment failed.
If a substitute check causes you a financial loss, for instance if your account is incorrectly charged, Check 21 gives you a refund process called expedited recredit. You have to contact your bank no later than 40 days after the bank mailed or delivered the account statement showing the problem. The bank then has to investigate promptly. If it can’t resolve the claim within 10 business days, it must provisionally refund the lesser of your loss or $2,500, plus interest if your account earns it, while it keeps investigating. Any remaining amount is due no later than 45 calendar days after the bank received your claim, unless the bank decides the claim is invalid.8Federal Reserve Board. Frequently Asked Questions about Check 21