What Is a Returned Check Fee? A returned check fee, also known as a bounced check fee or non-sufficient funds (NSF) fee, is a charge imposed when a check you write or deposit cannot be processed. This typically happens when the account holder does not have enough funds to cover the check amount. Both the check writer and the recipient may incur fees. How Much Do Returned Check Fees Cost? Returned check fees vary by bank but typically range from $25 to $35 per occurrence. Some banks may charge even higher fees for repeated occurrences. In addition to the bank fee, the payee (the person or company you wrote the check to) may also charge a returned check fee, which can add an additional $25 to $50 to your costs. Why Checks Get Returned Checks can be returned for several reasons: Insufficient Funds (NSF): The most common reason — your account does not have enough money to cover the check Account Closed: The check was written on an account that has been closed Stop Payment: The account holder requested a stop payment on the check Stale Date: The check is too old (typically over 6 months) to be processed Signature Mismatch: The signature on the check does not match bank records Post-Dated Check: The check is dated in the future Consequences of Bouncing a Check Beyond the immediate fees, bouncing checks can have serious consequences. Repeated instances may result in your bank closing your account. Your information may be reported to ChexSystems, making it difficult to open accounts at other banks. In some states, writing a bad check can even result in criminal charges. How to Avoid Returned Check Fees Always verify your account balance before writing a check Set up low balance alerts through your bank’s mobile app Maintain a cash cushion in your checking account Consider overdraft protection linked to a savings account Use online bill pay or electronic transfers when possible Record all checks in your register immediately