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Is your bank any different?
Take my bank - Bank of America as an example.
A sponsor sends a check. This time is was a little over $500 on a bank in Canada, I'm in the states.
Ten days later the check bounces and funds are withdrawn from my account plus a fee for what wasn't my error. Should Bank of America eat the $500? The SOBs didn't email, call, mail or anything. Now if that took the account into the red, I would have been hit for $30 for every check that didn't clear from me. That's even if I had other accounts at the same bank to cover all checks.
In today's world of electronic banking, a check can bounce back and forth rapidly and rack-up a tidy profit for the bank before they graciously give up on it.
I had enough funds in the account and didn't suffer more than the $500. The sponsor BTW is express mailing a replacement check and has offered to pay any bank penalties.
Would you have expected BOA to cover the $500? Years ago in a small town bank, I would have gotten a phone call from accounting pointing out what happened. Those days are long gone.
What if the bounce was a $20K check? You needed half of that to cover your expenses on the project. Say to pay for contract workers. You paid them, money is gone cause they are all local. Now what? Just food for thought.
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