If you receive a bad check from a customer, and don't know what you should charge for an "NSF fee" you need to look into the fees for your state or area. Most states have specific “NSF fee” statutes. These laws allow you to seek to collect either a specific service fee amount or an amount “not to exceed” a maximum NSF service fee. In those states that do not specify the amount of the NSF fee that can be applied, you must rely on the contract law or the Uniform Commercial Code to collect an additional bad check fee.
In most states some kind of notice must be provided to the writer of a dishonored check in order for the NSF fee to be collectible. This is very important if you end up having to go to small claims court or civil court to collect on a bad check. If you did not post this information when you should have, you may be out of luck. Some state statutes require a point–of–sale notice to be conspicuously posted regarding the fee, such as near your cash register, on your website, on your invoices or statements, in your office and anywhere a customer would be able to easily see it. Many of these statutes borrow from the common law’s “implied–in–fact contract” doctrine. The legal theory is that a person writing a check will see the notice and understand the terms. Hopefully this is the case and if the customer claims they did not see it but you have it posted and printed on paperwork, that is enough for the court. Through the act of writing the check after seeing the posted notice, the customer has accepted those terms. Therefore, if the check is later returns for non-payment, the implied–in–fact contract that was formed between the check writer and the merchant can be relied upon by you, the business owner and a collection agency if you use one.
You can create a sign to post that says, “The writer of a check or draft which is dishonored agrees that he/she will be assessed a service fee of $____ in connection with the collection of the amount for which the check or draft is written. The check writer agrees to pay the service fee in addition to the face amount of the check.” You can have these printed or create them on your computer, hang them in your office, lobby, and store. If you don't have a physical store or office, post this on your website, receipts, invoices, statements and in any emails you send out to customers. Include this on your credit application and any contracts you may have.
Many state NSF laws require that a specific statutory notice be sent to the check writer in order to collect the face amount of the check and the bad check fee. This notice can also serve as the initial collection notice and must contain the required state special text requirements, as well as the language required by the FDCPA.
In any case, it is possible to comply with both the state and federal requirements and collect an NSF fees from the bad check writer. Remember, if this happens to you put your customer on CASH or COD only, do NOT accept checks as a form of payment from this customer again.
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