What is the maximum fee for a bounced check?

A business or organization can charge a processing fee of up to $30 for bounced checks. This law is in Section 3.506 of the Texas Business & Commerce Code.

The Texas Department of Banking’s FAQ on fees states that this statute only applies to "non-bank check holders or retailers," not banks. Banks or credit unions can also assess their own fees for returned checks, like overdraft fees or non-sufficient funds (NSF) fees.

The law does not limit the amount a bank or credit union can charge for these types of fees. However, financial institutions must disclose their fees to consumers when opening new accounts. These regulations are part of the Truth in Savings Act in Title 12, Chapter X, Part 1030 of the Code of Federal Regulations.

Be sure to ask your bank or credit union about their policies on fees for returned checks.

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