• In addition to state fines, customers may also be required to pay their bank a bounced check fee.check book image by Rob Hill from Fotolia.com
  
  The specific laws regarding the issuance of a bad check vary by state, and New York has strict policies in place with respect to bounced checks. According to Investopedia, the definition of a bounced check is one that cannot be processed because the person issuing the check has insufficient funds in his or her account to cover the amount. In such an instance, the bounced check will be returned to the writer, who can face fines and possibly jail time depending on the circumstances.
  
  

Civil Laws

• When a check bounces due to a calculation error on the part of the writer, or a slow direct deposit cycle that left his or her bank account low, it is considered an accidental situation. If this happens in the state of New York, the writer of the check is charged with a civil crime and is responsible for reimbursing the payee the full amount of the check plus a fine of two times the amount of the check up to $750. These monies must be paid within 30 days after the writer receives notification that the check bounced.
  
  

Criminal Laws

• According to the Debt Collection Steps website, if a bad check is written intentionally to defraud the recipient, the issuer is subject to criminal prosecution and arrest and can be sentenced to up to three months in jail in New York. In lieu of jail time, the writer can be expected to pay a fine of up to $500, or up to double the amount of the drawer's gain from the commission of the offense, according to the National Check Fraud center. Intention to defraud is not always easy to prove, but most courts of law consider it suspicious if the writer does not pay fines within 30 days of receiving written notice that the check was not honored.
  
  

Bank Policies

• All banks charge a certain bounced check fee to their customers. According to Credit.com, the average fee charged by the issuing bank is about $27 per bounced check, as of 2010. Some banks in New York state require a credit report check before allowing an individual to open up an account at their establishment. Repeatedly bouncing checks can damage credit reputation.