Bad Check

Filed Under » ,
Dictionary Says

Definition of 'Bad Check'

A check drawn on a nonexistent account or on an account with insufficient funds to honor the check when presented.

"Passing" bad checks is illegal, and the crime can range from a misdemeanor to a felony, depending on the amounts involved and whether the activity involved crossing state lines.
Investopedia Says

Investopedia explains 'Bad Check'

Many times, bad checks are written inadvertently by people who simply were unaware that their bank balances were too low. It is always a good idea to have a small overdraft line of credit to cover such situations, or keep a close eye on your balance near bill-paying time.

When there are insufficient funds in an account, the bank will "bounce the check" (refuse to honor it). Banks and vendors frequently charge fees for bounced checks, sometimes exceeding the amount for which the check was written. Online banking can help to avoid writing bad checks by allowing you to view your balance more frequently. Consumers can also create a backstop account that is automatically debited if the primary checking account is too low to pay a specific check.

Articles Of Interest

  1.

    Should You Pay In Cash?

    Avoiding all forms of plastic payment can do wonders for your stress level and pocket book.

  2. The Ins And Outs Of Bank Fees

    These service charges could nickel and dime you right out of your nest egg.

  3. Your First Checking Account

    This owner's manual will show you what to expect from your bank.

  4. Choose To Beat The Bank

    From internet banking to credit unions, it's in your power to cut fees and maximize service.

  5. When Good People Write Bad Checks

    Overdraft protection can help when you overestimate your balance, but it will cost you.

  6. How To Safeguard Your Tax Returns From Identity Theft

    Identity thieves love tax season. In 2012, there were 13 million victims of identity theft. As easy as it is for thieves to steal your information, there are also simple measures you can take ...

  7. How To Report A Tax Cheat

    If you report a tax evader to the IRS, you could be eligible for a reward.

  8. How To Identify A Micro-Cap Scam

    Discover how to distinguish a real investment opportunity from a fraudulent one.

  9. If I want to have some cash in a liquid account for unexpected emergencies, what is best? A savings account or another type?

    It's always a good idea to keep some money set aside in a liquid form, but it's a double-edged sword, because the more liquid your money, the less it's earning. If you never have an emergency, ...

  10. The Underground Internet Economy Of Cybercrime

    Cybercrime represents an underground economy worth $114 billion. Let's take a look at how this economy operates.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.

  2. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  3. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  4. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  5. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.

  6. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=950f68a1bcd917b3f3ff9428aaa7c8b7