How much is an NSF fee in Canada?

NSF fees at major Canadian banks are typically $45–$48 per returned item. Some banks charge a lower fee for customers on certain plans. Credit unions and online banks may have different fee structures. In addition, the business or person you wrote the cheque to may charge their own returned cheque fee (often $20–$50).

Is writing a bad cheque illegal in Canada?

Writing a cheque with no intention of it being honoured can be fraud under Section 362 of the Criminal Code of Canada. However, accidentally bouncing a cheque because of an accounting mistake is generally a civil matter, not a criminal one. For a criminal charge to apply, prosecutors must typically show intent to defraud — that you knew there were insufficient funds and had no plan to cover the cheque.

Can a bounced cheque affect your credit score in Canada?

A single bounced cheque is not directly reported to credit bureaus and will not immediately affect your credit score. However, if the unpaid debt is sent to a collection agency, the collection account can appear on your credit report and significantly lower your score. In some cases, a history of NSF incidents can also lead to your bank closing your account, which can affect your ability to open new accounts.

What should I do if I accidentally wrote a bad cheque?

Act quickly: contact the recipient immediately, deposit funds into your account to cover the cheque, and ask if they will re-deposit it. Some banks allow cheque re-deposit within a few business days. You will still owe the NSF fee to your bank and possibly a returned cheque fee to the recipient. If the debt has already been sent to collections, contact the collection agency to arrange payment.

What Happens If You Write a Bad Cheque in Canada? NSF Explained

Q: What happens if you write a bad cheque in Canada?

When a cheque bounces (non-sufficient funds or NSF), your bank returns the cheque to the recipient's bank unpaid and charges you an NSF fee (typically $45–$48 at major banks). The recipient may also charge you a returned cheque fee. You still owe the original debt. If the NSF is deliberate or part of a pattern of fraud, it can become a criminal matter under the Criminal Code of Canada.

A “bad cheque” — also called a bounced cheque or NSF cheque — occurs when you write a cheque and your account does not have enough money to cover it when the recipient deposits it. This triggers a chain of fees and potential consequences that are worth understanding before they happen.

What “NSF” Means

NSF stands for Non-Sufficient Funds. When a cheque is presented to your bank for payment and your account balance is too low to cover it, your bank refuses to pay and stamps the cheque “NSF” or “Returned to Maker.” The cheque is sent back to the recipient’s bank unpaid.

A related term is “account closed” — if your account no longer exists, the cheque is returned on that basis instead of NSF.

Immediate Consequences of a Bounced Cheque

NSF fee from your bank

Your bank charges a fee each time a payment is returned for non-sufficient funds. These fees are not small:

Bank	NSF Fee (2026)
RBC	$48
TD	$48
BMO	$48
Scotiabank	$48
CIBC	$48
Tangerine	$45
Simplii Financial	$45
EQ Bank	$0 (no chequing product currently)

Some banks charge the NSF fee per attempt — so if the recipient re-deposits the cheque and it bounces again, you may be charged twice.

Returned cheque fee from the recipient

In addition to your bank’s NSF fee, the person or business you wrote the cheque to may charge you a returned cheque fee. These are common from:

Landlords ($25–$50)
Businesses ($20–$50)
Government agencies (varies)

The original debt still stands

A bounced cheque does not cancel what you owe. The recipient can pursue collection of the original amount by:

Demanding cash, e-Transfer, or certified payment
Sending the account to a collection agency
Taking you to small claims court

Longer-Term Consequences

Account flag or closure

Multiple NSF incidents signal account mismanagement to your bank. After repeated bounced cheques, your bank may:

Place restrictions on your account
Refuse to process further cheques
Close the account entirely

Banks share negative account history with ChexSystems (in the US) and with the Credit Bureau in some contexts. In Canada, there is no national “bad banking” reporting system equivalent to ChexSystems, but banks exercise discretion and can decline to open a new account if you have a history of account closures for cause.

Credit score impact (indirect)

A bounced cheque is not directly reported to Equifax or TransUnion. However:

If the unpaid debt is sent to a collection agency, that collection account appears on your credit report
Collection accounts significantly lower credit scores and remain on your report for 6 years from the date of last activity

Criminal liability (in serious cases)

Section 362 of the Criminal Code of Canada makes it an offence to obtain credit, goods, or services by false pretences — including writing a cheque knowing it cannot be honoured. To secure a fraud conviction, the Crown must typically prove intent to defraud, not merely that you made an accounting error.

Deliberate cheque fraud, such as writing cheques on a closed account or repeatedly bouncing cheques as part of a scheme, is taken seriously and can result in criminal charges.

Overdraft Protection: Avoiding NSF Fees

If you are at risk of overdrafting, overdraft protection is the most practical preventative tool. Most major Canadian banks offer overdraft protection linked to your chequing account:

Overdraft line of credit: The bank covers the payment up to a set limit, and you repay it with interest (typically 19–22% per year). The payment goes through rather than bouncing.
Overdraft transfer: Automatically transfers money from a linked savings account to cover the shortfall

Overdraft protection does not prevent all NSF situations — you can still bounce a cheque if you exceed your overdraft limit or if overdraft is not set up. But it eliminates most accidental NSF incidents from timing mismatches (e.g., your pay hasn’t landed yet when a bill tries to clear).

What to Do If You Accidentally Bounce a Cheque

Deposit funds immediately. Get your account balance above zero as quickly as possible.
Contact the recipient. Let them know the cheque bounced and offer to pay by e-Transfer, cash, or certified cheque immediately.
Confirm whether re-deposit is possible. Some banks allow re-deposit within 5 business days. Others require you to issue a new payment.
Pay any fees you owe. The NSF fee from your bank will typically be automatically debited. The recipient’s fee must be paid separately.
Review your account for triggers. If a pre-authorized payment caused the NSF, adjust your bill payment timing or balances.

Stop Cheque

If you have written a cheque and want to prevent it from being cashed — for example, you lost the cheque, issued it by mistake, or have a dispute with the recipient — you can place a stop payment with your bank. Most banks charge $12–$25 for a stop payment request. Note that a stop payment is for cheques not yet cashed; it cannot reverse a cheque that has already been processed.