BOUNCED CHECK Meaning and
Definition
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A bounced check refers to a type of financial instrument that has been returned unpaid by the bank on which it was drawn. Also known as a rubber check or a dishonored check, it occurs when the account holder does not have sufficient funds in their bank account to cover the amount written on the check. When the check is presented for payment, the bank is unable to honor it, and it is subsequently "bounced" back to the depositor.
The reasons for a bounced check can vary, including insufficient funds, account closure, or even issues with the check itself, such as missing signatures or incorrect information. When a check bounces, the bank typically charges the account holder a fee for the returned item, and the recipient of the check may also incur a fee from their bank. This can result in financial penalties for both parties involved.
In addition to these fees, bouncing a check can have negative consequences for the account holder. It may harm their creditworthiness and damage their banking relationship, making it harder to obtain credit or open new accounts in the future. Moreover, repeated instances of bouncing checks can lead to legal consequences, as intentionally issuing a check without sufficient funds is often considered a fraudulent act.
To avoid bounced checks and their ramifications, it is important for account holders to maintain a balanced and well-tracked account, regularly monitor account activity, and have sufficient funds available before issuing a check.
Common Misspellings for BOUNCED CHECK
- vounced check
- nounced check
- hounced check
- gounced check
- biunced check
- bkunced check
- blunced check
- bpunced check
- b0unced check
- b9unced check
- boynced check
- bohnced check
- bojnced check
- boinced check
- bo8nced check
- bo7nced check
- boubced check
- boumced check
- boujced check
- bouhced check
Etymology of BOUNCED CHECK
The word "bounced check" originated from the banking industry and imparts the action of a check being returned unpaid to the original party who attempted to deposit or cash it.
The term "bounce" in this context means to rebound or to be returned. It comes from the idea that when a check is presented for payment, and there are insufficient funds in the account to cover the amount, the check "bounces" back to the depositor or the merchant it was issued to.
The word "check" is derived from the Middle French word "eschequier" which means chessboard or counting table. The concept of a check emerged from the practice of using a board with squares to represent financial transactions, where the board often had markings resembling a chessboard.
Idioms with the word BOUNCED CHECK
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bounced check
A bounced check is a check that has been returned unpaid by a bank due to insufficient funds in the account of the person who wrote the check.
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