Bounced Check

A check or payment bounces when your account lacks the funds to cover it, so the bank returns it unpaid. You typically pay an NSF fee, the payee often charges a returned-payment fee too, and repeat incidents can get your account closed and reported to a banking database that makes opening a new one difficult. Overdraft protection converts the bounce into a fee-bearing overdraft instead — usually cheaper than the double fee, but easy to lean on until it becomes an expensive habit.