The risk of bad checks seems outdated in the age of Venmo, Paypal, Zelle, and various other ways to send secure payments. But plenty of Americans still write checks that can’t be cashed, and this can often lead to criminal charges.

Statistics show that 54% of Americans wrote a check in the past year, with 15% writing a few checks per month. And fraudulent check writing is surging: Banks reported almost 700,000 check fraud cases in 2022, nearly double the total cases in 2021. 

Bad checks can have serious consequences, and not just for the person who intentionally wrote them. The recipient will also have to deal with consequences, including lost revenue, bank fees, and fines. 

What is a Bad Check?

A bad check is knowingly written from bank accounts that don’t have sufficient funds to cover the full amount of the check or even accounts that have been closed or do not exist. Sometimes, a bad check is written due to simple human error. However, if someone intentionally writes a check knowing they don’t have enough money to be cashed, it can be considered theft. 

Texas has two penal codes that deal with bad checks.

Texas Penal Code Section §32.41 (The Texas Issuance of Bad Check or Similar Sight Order) establishes that it is illegal to issue or pass a check when you know you don’t have enough money in the bank to cover that check and any other outstanding checks.

Texas Penal Code Chapter 31 details the second provision, “theft by check.” It specifies that the only requirement to be charged with “issuance of a bad check” is writing a check knowing that it won’t clear.  In other words, the person writing the check is fully aware that the check will bounce due to nonsufficient funds (NSF). 

Penalties vary based on the total amount of the check, but a check for less than $100 is considered a Class C misdemeanor, punishable by a fine of up to $500. 

However, if the bounced check was issued for child support, charges will be upgraded to a Class B misdemeanor. You could face a maximum punishment of up to 180 days in jail and a fine of up to $2,000.

What Happens If You Write a Bad Check that is Over $500

In many states, $500 is the total amount that significantly increases penalties for writing bad checks. It’s generally considered to be an amount that’s high enough to cause serious financial harm to the merchant or recipient and is often the amount that constitutes fraud. It’s generally unlikely that law enforcement will believe claims that an uncashable check for $500 or more was a banking error.

However, Texas has no special penalties for bounced checks over $500. Penalties in Texas are based on the total amount of the check and range from a Class B misdemeanor to a felony.

Criminal Charges for Writing a Bad Check

A bad check must total more than $2,500 to be classified as a felony in Texas.

Amount	Charges	Penalties
Under $100	Class C misdemeanor	Maximum fine of $500
$100 to $750	Class B misdemeanor	Up to six months in jail and/or a fine of up to $2,000
$750 to $2,500	Class A misdemeanor	Up to a year in jail and/or a fine of up to $4,000
More than $2,500	Felony	Up to five years in prison and/or a fine up to $10,000

In addition to these penalties, a person convicted of writing a bad check may also:

• Have to pay restitution to the victim 
• Deal with a criminal record that appears on their credit report 
• Experience difficulty getting new credit, renting an apartment, or getting approved for a loan or mortgage 
• Be required to pay higher interest rates when borrowing money

Bouncing Three Bad Checks is a Felony

Bouncing three checks over five days is considered financial fraud and, as such, becomes a felony offense, even if the checks are for relatively small amounts. It won’t always matter if the merchants don’t cash the checks until the day when your account is empty. You can face up to five years in prison and a $10,000 fine if convicted. 

Some “Bad Checks” Aren’t Criminal

The following aren’t considered a criminal violation:

• Checks with missing information, such as a date or signature
• Post-dated checks or checks you voluntarily waited to deposit

What To Do If You Receive a Bad Check

People don’t like getting ripped off, and fraud is more likely when checks are involved because of the delay between cashing and processing.

Sometimes, a bad check will initially clear when you cash it. The money will be deposited in your account. Later, the funds will be removed from your account, and you’ll be charged a fee.

This is a common scam. Someone will offer to write you a check for more than they owe you (say, if they’re purchasing an item from you on Facebook Marketplace), then ask for the excess in cash. If you give them that extra cash, you’ll often find that the check will initially clear, but the bank or credit union will eventually remove that money (including the price paid for the item) from your account. Your bank will also probably charge you a fee.

Reasons a check could bounce include:

• Counterfeiting
• Forgery
• Insufficient funds to cover the transaction
• It was written on a closed account
• The account doesn’t exist
• A “stop-payment” order has been issued

Protect yourself: Don’t accept checks from strangers. If they propose any form of payment that sounds sketchy, cease contact. And if someone asks you to delay cashing a check for a few days, don’t agree unless this is a close friend or relative. If someone asks if they can write you a check for a larger amount than they owe and then asks you to pay them the difference in cash or gift cards, you’re likely being scammed.

If you fall victim to a scam, your options to get your money back will be limited. Your legal recourse will depend on the circumstances and the amount of the check.

If you take the check to local law enforcement officers, you might be able to pursue criminal penalties if the amount is high enough. In most cases, though, it will be considered a civil matter, and you must go to court.