what is a returned payment fee 
a returned payment fee is a one time penalty charged by a bank when a customer bounces a check the bank sends the customer a message indicating that a check has been returned unpaid due to non sufficient funds in the account depending on the bank this fee can be between 25 and 40 for each bad check a credit card issuer will add its own penalty fee if a customer makes a payment with a check or an online payment that is declined by a bank in order to resolve the problem the customer has to deposit enough money to cover the fees and the check that was not honored and then ask the recipient of the check to resubmit it for payment the customer s credit rating will not be dinged if the matter is resolved quickly understanding returned payment feescreditors charge consumers a series of fees some are for services rendered while others are punitive service fees range from account maintenance charges minimum balance fees and funds transfer charges punitive fees and penalties include things like non sufficient funds nsf charges late fees and returned payment fees creditors must specify the amount of any fees including those for returned payments in the agreement returned payment fees also called dishonored payment fees are charged when a customer makes a payment with insufficient funds to cover a payment depending on the creditor returned payment fees generally range anywhere between 25 and 40 per instance as noted above payments may be returned for any number of reasons including insufficient funds in a consumer s account or because of closed accounts banks may also freeze accounts for legitimate reasons including suspicious activity or government garnishments which can also result in payments being returned while returned payment fees are most common with checks they may also occur with payments that are made online or scheduled to be taken automatically consumers should be cautious when paying with a check or setting up an automatic payment customers who know they won t have enough money to cover their payment by the due date shouldn t send the creditor a check while late fees and interest charges may apply they won t have additional charges like a returned payment and nsf fee customers can easily cancel any recurring payments or make changes to the payment method to an account that can cover the charge to avoid a returned payment fee 