What Causes a Check to Bounce
It’s a good idea to understand how checks are processed and why it’s gotten so easy to write bad checks. First, everything is electronic, so things happen faster. Even if you write an old-fashioned check with pen and paper, the check might be converted to an electronic check when you hand it over to a retailer or your utility company. They don’t need to mail the check anywhere (which used to give you extra time to come up with the money). Even your friends and family can deposit checks with a mobile device right after you hand it over. Technology also gives you more options for bouncing a check. You don’t even have to write a physical check; you may pay bills automatically from your account. When things are automated, it’s easy to lose track of how much you have and how much you’re spending. Those payments may fail if you run out of money, and they also increase the likelihood of bouncing a check at the store — unless you can remember every payment that’s deducted from your account and when the money comes out.
How to Avoid Bouncing Checks
It’s easy to bounce a check, but it’s also easy to avoid with a few good habits (which will help your finances in other ways as well)
