Q:

What is the definition of a dishonored check?

A:

Quick Answer

A dishonored check is defined as a check that has been presented to a banking institution for payment and has been returned to the depositor due to insufficient funds. Dishonored checks are also referred to as bounced checks or returned checks.

Continue Reading
What is the definition of a dishonored check?
Credit: Rob Atkins Photographer's Choice Getty Images

Full Answer

Dishonored checks occur for a variety of reasons. In many cases, an individual simply miscalculates his checking account balance and unknowingly writes a check for an amount that exceeds the balance. Alternatively, there are also cases in which an individual intentionally attempts to cash a bad check in order to receive cash that is not rightfully his. Many banks provide customers with what is known as a "shadow balance," a secret line of credit that is determined by the bank that allows for payment of over-drafted checks at the bank's discretion.

Learn more about Personal Banking

Related Questions

  • Q:

    What features are available with Capital One online banking?

    A:

    Features available to customers using Capital One's online banking system include bill payment, account alert notifications and transferring funds to other bank accounts. Customers are also able to sign up for online statement delivery.

    Full Answer >
    Filed Under:
  • Q:

    What onilne services does Associated Bank offer?

    A:

    Associated Bank offers a range of online banking services for its customers, including access to account balances and transaction history, an online bill payment system and online funds transfers. Associated Bank customers can also use the company's online banking system to set up alerts on their account that automatically sends emails or texts when certain activities occur. Associated Bank offers the Popmoney money sending program that allows its customers to send funds via text or email.

    Full Answer >
    Filed Under:
  • Q:

    What are some services offered by TD Canada Trust EasyLine?

    A:

    TD Canada Trust EasyLine offers an automated telephone service that allows account holders to pay bills, confirm account balances, transfer funds between accounts, check bill payment history and receive interim statements by fax, as of 2016. The service also connects callers with EasyLine banking specialists who offer personalized assistance.

    Full Answer >
    Filed Under:
  • Q:

    What is online bill payment?

    A:

    Online bill payment uses the electronic transfer of funds to pay bills without having to write a check or mail a voucher. Companies may make online payment options available to their customers. Alternatively, a bank or another third party may be set up to pay a variety of bills.

    Full Answer >
    Filed Under:

Explore