To encourage you to make sure you have enough money before writing a check out. It cost them money to bounce your under funded check in the first place, they only want this exert cost back. And you to wise up!
That is not always the reason. Sometimes, people forget to transfer the money. In any event, the bank processed your check. That cost them money. When the check came back bad, the bank had to spend more money notifying you and it all has to be documented in their system and on your statement. Who do you think should pay for YOUR mistake?
It's a way to make money. Some/most banks will still cover the charge for you if you are a long term account holder in good standing.. but the charge is so you don't make a habit of this. If you've never done this before they may even waive the fee (again, if you are a long term customer in good standing.. (meaning you've never done this before.
Because they've just covered your @ss instead of having a payment not go through. Even more important, it's the terms you agreed to when you opened the account.
Because they make millions of dollars for paying your overdrafts which is almost pure profit for them. Something to remember regardless of what they might want you to believe " Banks are not your friend"!
Answers & Comments
I just got my loan from [email protected]
To encourage you to make sure you have enough money before writing a check out. It cost them money to bounce your under funded check in the first place, they only want this exert cost back. And you to wise up!
Mainly to teach you not to write a check when you do not have the funds in your account to cover it.
You cause them to do extra work.
That is not always the reason. Sometimes, people forget to transfer the money. In any event, the bank processed your check. That cost them money. When the check came back bad, the bank had to spend more money notifying you and it all has to be documented in their system and on your statement. Who do you think should pay for YOUR mistake?
Due to the cost and time involved in processing and accounting for a bum check. Banks can't honour cheques that have no money in the account.
Its to prevent you the embarrassment of not completing your transaction.
Its punishment for not knowing the amount left in your account.
It's a way to make money. Some/most banks will still cover the charge for you if you are a long term account holder in good standing.. but the charge is so you don't make a habit of this. If you've never done this before they may even waive the fee (again, if you are a long term customer in good standing.. (meaning you've never done this before.
Because they've just covered your @ss instead of having a payment not go through. Even more important, it's the terms you agreed to when you opened the account.
Because they make millions of dollars for paying your overdrafts which is almost pure profit for them. Something to remember regardless of what they might want you to believe " Banks are not your friend"!