A returned check fee, also known as a non-sufficient funds fee (NSF), is a penalty charged by a bank when a customer writes a check that gets returned to the bank due to insufficient funds. The fee is charged to recoup some of the administrative costs of attempting to process check transactions. The check writer is normally responsible for covering the fee, which can vary from $10 to $50 depending on the bank. The person who attempts to deposit a bad check can also face penalties. If a customer makes a payment with a check or an online payment that is declined by a bank, a credit card issuer will add its own penalty fee. Merchants can also charge a bounced check fee, which typically costs $20 to $40. The cost of a returned check fee is about the same as an overdraft fee, which is around $35. To avoid returned check fees, customers can ensure they have sufficient funds in their account before writing a check, enroll in overdraft protection, or make long-term financial changes.