How to “Bounce Back” After a Bounced Check

Whether you gift checks to family members or you still use this payment method in your day-to-day life (hey, no judgment here! We appreciate the classics, too), you may have forgotten to confirm your balance before writing one. A bounced check can result if there isn’t enough available funds in your checking account. This can happen to anyone – what counts is how you “bounce” back!

Steps to Take Following a Bounced Check

1. Pay any Associated Fees

There are some associated fees when you bounce a check, including overdraft charges. It’s important to pay this fee as quickly as possible, as some banks or credit unions may charge additional fees the longer your account is overdrawn.

You can avoid overdraft fees all together by enrolling in overdraft solutions. Some examples of this are:

• Overdraft line of credit. Once approved, you’ll have access to a line of credit that automatically kicks in to cover an overdraft.
• Overdraft protection transfers. This option allows you to automatically transfer funds from a savings account to your checking account.¹

2. Contact the Intended Recipient

Let the person who was supposed to receive the check know that it bounced. It’s always good to give a heads up! Be honest about when you’ll be able to have the funds available to give them. If the recipient is a business, double check if there are any associated fees, such as a returned check fee.

3. Document the Incident

Banking reporting agencies like ChexSystems keep track of banking history. When you’re able to make a check payment, be sure to keep bank statements so you’re able to dispute items on ChexSystems as needed.

A bounced check can have a negative impact on your credit score, cause you to incur fees, and even affect your banking relationship if you make it a habit. The best course of action is to avoid bounced checks in the first place. Accomplish this with one of General Electric Credit Union’s overdraft solutions!