What is a bounced check?

A bounced check occurs when a check is written for an amount that exceeds the balance in the writer's bank account. This results in the bank refusing to process the check because there are insufficient funds to cover the payment. The term "bounced" refers to the bank's action of returning the check to the payee and notifying them that it was not honored due to the lack of available funds. This event can lead to various consequences for the person who wrote the check, including fees from both the bank and the payee, as well as potential damage to their credit rating if it becomes a recurring issue.

The other options do not accurately describe a bounced check. Writing a check for an amount that is less than what is in the account does not lead to a bounce, and a check issued by a bank typically remains valid as long as it is cashed correctly. Lastly, a check that has been cashed successfully indicates that the transaction completed without issue and the funds were available, which is the opposite of what happens with a bounced check.