BROWSE

Bad Check

What is '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.

Explaining '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.


Further Reading


Emerging capital markets in turmoil: bad luck or bad policy?
ideas.repec.org [PDF]
… "Emerging Capital Markets in Turmoil: Bad Luck or Bad Policy?," MIT … 2. Check on the provider's web page whether it is in fact available … F0 - International Economics - - General; G01 - Financial Economics - - General - - - Financial Crises; O16 - Economic Development, Innovation …

Economy-wide corruption and bad loans in banking: international evidenceEconomy-wide corruption and bad loans in banking: international evidence
www.tandfonline.com [PDF]
… "Emerging Capital Markets in Turmoil: Bad Luck or Bad Policy?," MIT … 2. Check on the provider's web page whether it is in fact available … F0 - International Economics - - General; G01 - Financial Economics - - General - - - Financial Crises; O16 - Economic Development, Innovation …

Do democratic transitions produce bad economic outcomes?Do democratic transitions produce bad economic outcomes?
pubs.aeaweb.org [PDF]
… "Emerging Capital Markets in Turmoil: Bad Luck or Bad Policy?," MIT … 2. Check on the provider's web page whether it is in fact available … F0 - International Economics - - General; G01 - Financial Economics - - General - - - Financial Crises; O16 - Economic Development, Innovation …

The big, bad wolf and the rational market: portfolio insurance, the 1987 crash and the performativity of economicsThe big, bad wolf and the rational market: portfolio insurance, the 1987 crash and the performativity of economics
www.tandfonline.com [PDF]
… "Emerging Capital Markets in Turmoil: Bad Luck or Bad Policy?," MIT … 2. Check on the provider's web page whether it is in fact available … F0 - International Economics - - General; G01 - Financial Economics - - General - - - Financial Crises; O16 - Economic Development, Innovation …

Good debt or bad debt: Detecting semantic orientations in economic textsGood debt or bad debt: Detecting semantic orientations in economic texts
asistdl.onlinelibrary.wiley.com [PDF]
… "Emerging Capital Markets in Turmoil: Bad Luck or Bad Policy?," MIT … 2. Check on the provider's web page whether it is in fact available … F0 - International Economics - - General; G01 - Financial Economics - - General - - - Financial Crises; O16 - Economic Development, Innovation …

Foreign aid: Good for investment, bad for productivityForeign aid: Good for investment, bad for productivity
www.tandfonline.com [PDF]
… "Emerging Capital Markets in Turmoil: Bad Luck or Bad Policy?," MIT … 2. Check on the provider's web page whether it is in fact available … F0 - International Economics - - General; G01 - Financial Economics - - General - - - Financial Crises; O16 - Economic Development, Innovation …

Doing well while doing bad? CSR in controversial industry sectorsDoing well while doing bad? CSR in controversial industry sectors
link.springer.com [PDF]
… "Emerging Capital Markets in Turmoil: Bad Luck or Bad Policy?," MIT … 2. Check on the provider's web page whether it is in fact available … F0 - International Economics - - General; G01 - Financial Economics - - General - - - Financial Crises; O16 - Economic Development, Innovation …



Q&A About Bad Check


What are some fees associated with bounced checks?

Banks and vendors frequently charge fees for bounced checks, sometimes exceeding the amount for which the check was written.

How can you avoid writing bad checks?

You can create a backstop account that is automatically debited if your primary checking account has too low of a balance to pay for specific checks.

What is the definition of a bad check?

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

What does online banking do to help prevent writing bad checks?

Online banking allows consumers to view their balances more frequently so they don't write bad checks.

Why should you always have an overdraft line of credit or keep a close eye on your bank balance near bill-paying time?

Because it helps to avoid writing bad checks.