Is a bounced check a misdemeanor or felony? The truth is that it varies by state. Bounced checks are a fact of life, it just matters whether you intended to bounce it or not. People do make mistakes.

Here is what happens with a bounced check:

1. After giving your check to a merchant, the merchant sends your check to the bank to collect the money.
2. If you do not have enough money in your account to cover the check, the bank will dishonor, or not pay, the merchant for your check.
3. When this happens, your check has “bounced”. Your bank will return the check to the merchant and the bank or a collection agency will send you a Notice of Dishonor.
4. The Notice of Dishonor will tell you that you still owe the merchant the face value of the check and that you also owe a returned check fee to the bank or collection agency.
5. After your bank sends you this Notice of Dishonor, the bank is no longer involved in collecting on your check.
6. The collection becomes between you, the merchant and any collection agency the merchant may choose to involve.

The law sets very specific procedures for the merchant and debt collection agencies to follow in their actions to collect the money that you owe them.

You will bounce one check in your life, so just be aware that we all make mistakes, but if you become the victim of fraud, then that is another matter.

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