What a Return Item Chargeback Means on Your Bank of America Account

A return item chargeback is when Bank of America reverses a check deposit because the check bounced or the issuing bank rejected it for another reason

When you deposit a check into your Bank of America account, the bank sends it to the issuing bank (the bank that the check was drawn on) for collection. If that bank refuses to pay the check — because the account has insufficient funds, the account is closed, the signature doesn't match, or the check is post-dated — Bank of America removes the deposit from your account and charges you a fee. This reversal appears on your statement as a "return item chargeback" or "returned check."

The key difference between a return item chargeback and a regular overdraft is timing. With a return item chargeback, you had money in your account when you deposited the check, but that money is taken back after the issuing bank rejects it. You may also owe Bank of America a return item fee, which varies but typically ranges from $10 to $25 per returned check.

Key Takeaways

• A return item chargeback happens when a check you deposited is rejected by the issuing bank and Bank of America removes the funds from your account.
• Bank of America charges a return item fee each time a check is returned, separate from any overdraft fees you might owe if the reversal puts your account negative.
• The person or business who wrote the check is responsible for making it good, but you may need to contact them directly to resolve the situation.
• Returned checks typically take three to five business days to process, so the reversal may not appear when ready after deposit.

Why Bank of America Returns Checks

The issuing bank rejects a check for specific reasons, and Bank of America has no choice but to reverse it. The most common reason is insufficient funds — the account that the check was drawn on does not have enough money to cover it. Other reasons include a closed account, a signature that does not match the bank's records, a post-dated check (one dated in the future), a stale-dated check (one older than six months), or a stop payment order placed by the check writer.

Less commonly, the issuing bank may reject a check because the amount written in numbers does not match the amount written in words, the check is damaged or illegible, or there is a hold on the account. In rare cases, the check itself is fraudulent or forged, though this is usually caught before the check reaches your account.

How the Return Item Fee Works

When Bank of America receives notice that a check has been returned, it charges you a return item fee. This fee is separate from any overdraft fees. If the returned check causes your account balance to drop below zero, you will also owe an overdraft fee on top of the return item fee.

For example: You have $500 in your account and deposit a $600 check. Bank of America provisionally credits your account, bringing it to $1,100. Three days later, the issuing bank rejects the check. Bank of America removes the $600, bringing your balance back to $500, and charges you a return item fee of around $15. If you had already spent money based on the $600 deposit, your account could now be negative, triggering an additional overdraft fee.

Bank of America's return item fee amount depends on your account type and your banking history with them. You can find the exact fee in your account agreement or by calling Bank of America customer service at 1-800-432-1000.

What Happens to Your Account After a Return

The returned check typically takes three to five business days to process after deposit. During this time, Bank of America shows the deposit as pending. Once the issuing bank rejects it, the funds are removed from your available balance, and the return item fee is charged. Your statement will show both the reversal of the deposit and the fee as separate line items.

If the returned check causes your account to go negative, Bank of America may decline other transactions (checks, debit card purchases, or transfers) to prevent further overdrafts. You will need to deposit money to bring your account back to a positive balance and cover the return item fee.

How to Resolve a Returned Check

Contact the person or business who wrote the check and ask them to reissue it or provide an alternative payment method. Explain that the check was returned and that you incurred a fee. Most people will rewrite the check once they resolve the underlying issue — usually adding funds to their account or correcting a signature problem.

If the check writer refuses to make it good or is unreachable, you have limited options through Bank of America. The bank is not responsible for collecting the debt; it is only responsible for processing the check and charging you the fee. If the amount is significant and the check writer is deliberately avoiding payment, you may need to pursue the matter through small claims court or consult with an attorney.

Do not deposit the same check again without confirming with the check writer that the underlying problem has been fixed. Depositing a check that you know will bounce a second time may result in another return item fee and could be considered fraud in some circumstances.

Disputing a Return Item Chargeback

If you believe Bank of America made an error — for example, if the bank reversed a check that should have been paid, or if the return item fee was charged twice — you can file a dispute. Contact Bank of America's customer service or visit a local branch with documentation of the error.

Bank of America will investigate the dispute by contacting the issuing bank to confirm whether the check was actually returned and for what reason. If the issuing bank confirms that the check was legitimately rejected, Bank of America will not reverse the fee. If Bank of America made a processing error, the bank will credit the fee back to your account, usually within 5 to 10 business days.

How to Avoid Return Item Chargebacks

The most reliable way to avoid return item chargebacks is to wait for checks to clear before spending the money. Bank of America's standard hold period for check deposits is one business day for most accounts, but the check may not actually clear the issuing bank for three to five business days. Spending money based on a deposit that has not fully cleared is the most common cause of overdraft and return item fees.

If you receive a check from someone with a history of bounced checks, ask them to use a different payment method or to deposit the money into their account before writing the check. For recurring payments, set up automatic transfers or ACH payments instead of relying on checks.

Frequently Asked Questions

Can Bank of America refuse to deposit a check I give them?

Bank of America can refuse to deposit a check if it is damaged, illegible, or if the bank suspects fraud. In most cases, the bank will accept the check and process it normally, then reverse it later if the issuing bank rejects it. If you have questions about a specific check, ask at the branch or call customer service before depositing it.

Will a returned check hurt my credit score?

A returned check does not directly appear on your credit report. However, if you do not pay a debt and the creditor reports it to a credit bureau, that will hurt your score. A returned check is between you and the check writer, not a credit event unless money owed is involved.

How long does Bank of America hold a check before it clears?

Bank of America typically places a one-business-day hold on check deposits for most account types. However, the check may take an additional two to four business days to clear the issuing bank. Do not assume the money is available to spend until at least three to five business days have passed.

What if I deposited a check and the person who wrote it says they never wrote it?

Contact Bank of America when ready and report the check as fraudulent. The bank will investigate and may reverse the deposit and any fees. If you knowingly deposited a fraudulent check, you could face legal consequences, so be honest about whether you knew the check was not legitimate.

Can I get the return item fee waived?

Bank of America may waive the return item fee as a courtesy if this is your first returned check or if you have a long history of good standing with the bank. Call customer service or visit a branch and explain the situation. There is no may provide the fee will be waived, but it is worth asking.