What does a bank do with NSF Checks?

NSF Checks are checks that are not honored by the bank in which it was written from because of insufficient funds in the drawer’s check, causing there to be an overdraft in the account. NFS stands for Non-Sufficient Funds. When a bank receives a NSF check there are a few things they can do that may hurt you financially.

Many banks apply a fee to the account. This fee can be up to more than $30. If you write several NSF checks then this fee would be applied for each bounced check. These fees could make your account go into a negative balance, which would also incur fees.

Banks will usually present the NSF check twice before returning the check back to the account holder who deposited it. They are usually presented on the first and second business day of the deposit. If the funds are still insufficient the bank sends the check back to the depositor, who then would have to pay a chargeback fee for trying to deposit the NSF check. This may seem unfair but according to banks, legally everything the depositor takes to the bank is now their responsibility.

You can avoid chargebacks by cashing the check at the bank of which the account of the check was written is from. Present the check you wish to cash to the teller and ask them if there are sufficient funds in that account. They should be able to tell you yes or no. If they say no you may come back each business day after to ask until there are funds available in the account. It is better to take the check to the bank rather than calling by phone for security reasons. If the funds are there and you’d like to cash the check make sure there are no cashing fees at the bank.

In some cases, banks may actually but a hold on your entire bank account due to writing a NSF check. If the bank thinks that someone is attempting to negotiate fake checks on your account the bank may freeze the account to prevent that for your safety. When banks suspect fraudulent activities on your account they are normally frozen or closed and the funds are transferred to new accounts.

Writing a NSF check can harm your account and others and it’s best to be careful when writing checks and to make sure you are keeping track of your account balance. If you have been written a NSF check visit GlobalCheckRecovery.com for help receiving your fund quickly without any charges!

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