NSF check and bank account statement?I don't quite get the concept of an NSF check, given the following situation. A company named Mickey's Marathon Sports deposited a customer's check to Mt. Etna's State Bank, which is the company's bank. Turns out the check is an NSF check (the customer did not have any sufficient funds in the... |
It was the business' decision to accept the check(could have verified funds or cash only policy) not the bank. if they were allowed to profit, would be lots of fraud. even if allowed to break even, no penalty fee, would be little effort to check id. etc
If you are a good customer a bank will pay the check instead of returning the check to the person the check was written to.
If you have $10 in your account and write a check for $25
The bank will pay the $25
Deduct $25 from your account
Leaving a red balance of $15
They will then add a bounced check fee usually $30
So your account balance is -$45
When you deposit funds into this account the bank will take the $45 to bring the account out of the red.
The balance is yours to spend.
Because they ADDED the amount to Mickey's acct when it was deposited, so they're reversing it back out.
