It’s Not About the Bounced Check — It’s How They Bounce Back
An important topic we all deal with is bounced payments. More important than the bounced payment itself is how they impact trust. It’s not just about the NSF itself, but what comes after. That made something click:
The real red flag isn’t the bounced check. It’s the behavior that follows it.
Let’s be honest, NSFs happen. And while they're not ideal, they’re not always the biggest problem.
The Bounce Is Just a Signal
Sometimes a check bounces because someone mistimed a transfer. Or AP thought the invoice was scheduled for later. It happens. We’ve all seen it.
But what happens after that bounce? That’s what separates a simple oversight from a real credit concern.
Here’s what I’ve learned to pay closer attention to:
Vague promises that never materialize
Emotional urgency ("We need this released today!") without actual payment
Shifting blame ("That’s AP's fault," "It’s the bank’s issue")
Total silence when you follow up
These aren’t one-offs. They’re patterns. And they usually say a lot more about a customer than any credit report.
The Bounce-Back Is the Behavior
I had one customer who bounced a check — not great, but I gave them the benefit of the doubt. They called immediately, explained what happened, sent proof of the correction, and wired the funds that same afternoon.
Another time? A check bounced and I heard nothing. No returned calls. No emails. No urgency on their end. And worse? They pushed for a release without even acknowledging the issue.
Guess which customer I still trust?
This is why I now flag the response, not just the NSF. I make notes in the system. I bring it up in reviews. I talk to Sales. Because credit risk shows up in behavior long before it shows up in financials.
So What Should You Watch For?
If you’re managing risk, don’t just track transactions. Track reactions.
How quickly do they respond? How clearly do they communicate? How seriously do they take it?
Anyone can bounce a check. Not everyone owns it.
A bounce might be a fluke. But how they bounce back? That’s your truth.
