• A check bounce occurs when the issuer of the check does not have enough funds to fulfill the payment amount on the check to the payee.

  • When a check bounces, it is not accepted for payment by the depositor’s bank and may result in fees and bank restrictions.
  • Additional penalties for returning checks may include negative credit ratings, sellers not accepting your checks, and potential legal issues.
  • Banks often offer overdraft protection to prevent a check from being unintentionally refunded.