Why do banks and businesses charge a returned check fee if your check doesn’t clear, but if your debit card is declined it just is declined with no fees?

Question

Why do banks and businesses charge a returned check fee if your check doesn’t clear, but if your debit card is declined it just is declined with no fees?

In: Other

Answer 1

The check doesn’t get withdraw from the account until it’s presented at a bank. The merchandise is out of the seller’s hand by that time so the bank still pays out the check. A returned check fee is the bank charging for the service of paying the check from an account that doesn’t have the funds to cover the amount.