Neither federal nor state laws compel banks to redeposit returned checks or place limits on the number of times a bank can redeposit an item returned unpaid due to insufficient funds. However, major banks typically redeposit items that are returned unpaid.

Do banks submit checks twice?

Depositing the same check twice is called “double presentment.” If done intentionally, double presentment is considered a form of check fraud that could lead to state or federal penalties.

What happens when a check is returned for insufficient funds?

If a bank receives a check written on an account with insufficient funds, the bank can refuse payment and charge the account holder an NSF fee. Additionally, a penalty or fee may be charged by the merchant for the returned check.