Bounced Check – Reasons That Can Lead To A Check Bounce In 2021

Bounced Check

Have you ever come across a bounced check? In simple terms, did you face any situation where a bank rejects your check? In such a situation, you may tend to think, “why did the check bounce?” Since everyone doesn’t know how to write a check correctly, it may get rejected for various reasons. 

In this article, you will know what a bounced check is and what the reasons are that lead to check bounce. Learn them and avoid such mistakes so that your checks never get bounced. 


What Is A Bounced Check?

Bounced_CheckBanks clear a check by giving or depositing the amount mentioned on the check to the payee. However, banks may reject or disapprove a check if there are some problems with the check, and it’s called a bounced check. Post that, banks will inform the issuer and payee about the rejection. The bank may also charge penalties to both the issuer and payee. 

Different Reasons For Bounced Check

Reasons For Bounced CheckNow that you understand what a bounced check is. Learn more about why you can lead to rejection of your check and how you can avoid them. 

1. Insufficient Funds

Having insufficient funds in your account is one of the prevalent reasons for a check bounce. If you don’t have enough funds, but you write an amount more than your bank balance on a check, banks cannot make the transaction due to insufficient funds. 

In such a case, the bank may put penalties on both the issuer and the payee. So, you should ensure that you have funded more than the amount you write on a check. 

2. Mismatch Of Signature

Signature is the most important part of the verification of a check. If the bank finds any mismatch or irregularity in your signature, it may reject the check. Banks will not accept a check with different or mismatched signatures that is available with the bank. 

One of the main concerns people face while signing a check is the signature they had put at the time of opening a bank account may not be the same as their signature today.   

3. Wrong Or Disfigured Date

The date of the check is an important part, and any mistake or error can lead to the rejection of your check. There are various reasons for which a check gets disapproval due to date. 

Usually, if you scribble or overwrite or make any mistakes while writing the date, it may get rejected. So, you should be careful while putting the date on a check. To avoid this issue, you should verify it before depositing it to the bank. 

4. Post-Dated Bounced Check

When you deposit a post-dated check before the due date, it may get rejected. Sometimes you may receive a check with a due date in the future, but if you deposit it before the due date, it will be dishonored. 

For example, if the issuer writes a check today (30-March-2021) but puts a future date (4-April-2021), and you deposit it before 4th April, the bank will reject it. So, you should keep this in mind while depositing a post-dated check.  

5. Mismatch Of Amounts In Numeric And Word Form

If there is any difference in the amount in numeric form and word form on the check, it may lead to a bounced check. If you have never written a check before, remember, there are two spots on the check where you have to write the amount in words and in numeric form. 

So, the amount you write in the numeric form must be the same as the amount you write in words. For example, if you write “150.00” in the numeric section, you need to write “One Hundred Fifty and 00/100” in the words section. Otherwise, your check may get rejected, for which you may have to pay the penalty. 

6. If The Check Is Damaged

Another reason for check bouncing is submitting a damaged or worn-out check. When the check is not in good condition or the details are not clear, the bank may reject it. 

No matter what the reason is, if there are stains or unclear information on the check, it may be rejected by the bank. So, it’s crucial that you keep the check safely and in proper condition. 

7. Overwriting On The Check

There may be mistakes or errors while writing a check. However, you need to write a new check instead of overwriting or scribbling on the check. Banks will not accept overwritten or scribbled checks. 

Giving a scribbled or overwritten check can lead to check-bouncing. Hence, you should not submit a scribbled check at the bank or give it to someone else. 

FAQs On Bounced Check

Now that you know different reasons for a bounced check, here are some common questions people ask about check bouncing. 

  • What Is The Penalty For A Bounced Check?

The penalty may vary from one situation to the other. If you are paying a check for the repayment of a loan, the penalty is different when you are paying the check for the service bill. Again, the penalty may also vary based on your bank and state.

  • Can A Date Lead To Bounced Check?

Yes, wrong or inappropriate data can cause a bounced check. Some common reasons for a check bounce due to date is any mistake or disfigurement of date. Again, if the date is overwritten or scribbled, that can also lead to check-bouncing. 

  • How Does A Bounced Check Affect You?

A bounced check may have several negative consequences, such as a penalty to both the payee and drawer, affecting the credit score. Again, many cases have found that the payee filed a lawsuit against the drawer. 

The Bottom Line

Hopefully, the above information has helped you to know about different reasons for a bounced check. So, you should take care of these things to avoid a check-bounce. Writing a check correctly and neatly is important, and you should also ensure that you have enough funds in your account before writing the amount. Lastly, if you have any queries regarding a bounced check, don’t hesitate to drop them in the comments section. 

Read Also:


Please enter your comment!
Please enter your name here