Business owners can charge an NSF or "bad check fee" when they receive a check back from their bank. Most buisness owners don't know how much that fee is, it is different in every state. I have compiled a list of bad check fees by state, be aware that this changes and this is the infromation that I have at the time of this posting. You can always call or check your attorney generals website or office or check with the ACA if you want to verify or see if anything has changed since this post.
Bad check laws do not apply when an individual stops payment on a check UNLESS it can be proven that the issuer of the check intended to stop the check when he presented the check for payment. Some states authorize the receiver of a bad check to collect a service charge to compensate for bank fees and/or cost incurred as a result of receiving and collecting on a bad check.
| ALABAMA | $27 |
| ALASKA | $25 |
| ARIZONA | $25 |
| ARKANSAS | $25 |
| CALIFORNIA | $25 for first check and a service fee of up to $35 for each subsequent check to the same payee |
| COLORADO | $20 |
| FLORIDA | $25 if face value does not exceed $50, $30 if the face value exceeds $50 but does not exceed $300, $40 if the face value exceeds $300 or 5% of the face value of the check, which ever is greater. |
| GEORGIA | $25 or 5% of check, whichever is greater, to be paid in 10 days. |
| HAWAII | $20 |
| IDAHO | $20, notice must have been given at time of sale. |
| ILLINOIS | $25 OR all costs & expenses. |
| INDIANA | $20 or 5% of check, whichever is greater, not to exceed $250, due in 10 days. |
| IOWA | $20 posted conspicuously or 5% of the face, which ever is greater. $50 if the check is presented twice. |
| KANSAS | $10 due in 14 days |
| LOUISIANA | $25 or 5% of face amount, whichever is greater, posted at point of sale |
| MAINE | Through civil action only, not to exceed $50 or an amount agreed in contract with consumer |
| MARYLAND | $25 |
| MICHIGAN | $25 to be paid within 7 days, if not paid as requested, but within 30 days the service fee is $35 |
| MINNESOTA | $20 posted at point-of-sale OR actual cost of collection not to exceed $30. |
| MISSISSIPPI | $30 with payment to be made within 15 days |
| MISSOURI | $20 |
| MONTANA | $30 |
| NEVADA | $25 |
| NEW HAMPSHIRE | $25 or an amount agreed to in contract with consumer |
| NEW YORK | $20 |
| NORTH CAROLINA | $25 |
| NORTH DAKOTA | $20 |
| OHIO | $30 or 10% of face value of check, whichever is greater |
| OREGON | $25 |
| PENNSYLVANIA | $20 if notice prominently displayed at point of sale, when check is issued and after conviction. |
| RHODE ISLAND | $25 after 30 days |
| SOUTH CAROLINA | $25 or $30 for checks over $100 |
| SOUTH DAKOTA | $30 |
| TENNESSEE | an amount up to $20 |
| TEXAS | $25 plus sales tax |
| UTAH | $20 |
| VIRGINIA | $25 |
| WASHINGTON | fee not to exceed $40 or face value of check, plus interest of 12% per annum as long as check is not for payment of interest, collection costs or attorneys fees. |
| WEST VIRGINIA | $15 |
| WYOMING | $30 |
| WISCONSIN | all reasonable collection costs. |
Michelle,
You have become a 'one stop shop' for good, solid, sound advice. The credit & collections board you started on yahoo has exploded with entrepreneurs seeking direction as they start. People like you who have succeeded, and wish to share their expertise via books, boards, and blogs, are an inspiration. (I sound like your biggest fan) Thanks for the info on the checks/states/fees.
Best regards,
Tim
Oh, thanks for the link to Bizcreditpolicy. Already bookmarked.
Posted by: Timmy | February 4, 2006 9:00 AM | Permalink to Comment