What occurs when a check is written without sufficient funds in the checking account?

When a check is written without sufficient funds in the checking account, a fee is typically charged for every bounced check. This situation occurs because the check cannot be processed, as there aren’t enough funds to cover the amount. Banks often impose penalties for this, which is often referred to as a "non-sufficient funds" (NSF) fee. This serves as a deterrent against writing checks without adequate funds and helps the bank recover some of the administrative costs associated with the transaction.

In addition to the fee, the check may be returned to the payee, which can create complications in fulfilling the payment obligation. While the account may become overdrawn if the bank covers the check via an overdraft protection service, that is not the immediate outcome of writing a check without sufficient funds. The check will not be processed as usual, and canceling the check automatically does not happen; rather, it reflects a significant mismanagement of funds, leading to additional fees and possible legal consequences if it's unresolved.