How to Cope with a Bounced Check

Anyone who has ever had a checking account is familiar with bounced checks. Most people bounce at least one check in their lives. Bouncing a check can be an embarrassing and expensive mistake, but it is a mistake that you can correct if you take quick action.

Difficulty: Moderate

Instructions

Things You'll Need:

• Checkbook register or bank statement
• Telephone
• Phone numbers to your bank and to the check recipient

Coping With a Bounced Check

1. As soon as you know you have bounced a check, deposit enough money into your checking account to cover the check and any associated overdraft fees.

2. If it is your first bounced check, call your bank and ask if they have an overdraft forgiveness program. Many banks will waive the first overdraft fee for customers who have a long-term account in good standing.

3. Call the recipient of the check and make arrangements to pay the check. Most merchants also charge an overdraft fee in addition to the fees imposed by your bank. If you are a regular customer, ask if there is any way the fee can be reduced. Many merchants will not reduce the fee, so be prepared for rejection.

4. After you have contacted your bank and the check recipient and taken care of your financial obligations, compare your checking register or bank statement and see if an accounting error caused the overdraft. If you can find where and why the overdraft occurred, you can avoid another overdraft.

Tips & Warnings

• If you use an ATM or debit card, always remember to record any ATM fees. An error as small as $1 can negatively impact your checking account.
• Always keep a cushion in your checking account to help prevent overdrafts.
• If you keep a savings account at your bank, link your savings and checking account. If you overdraw your checking account, many banks will pay the check using funds from your savings account.