Cheque bounce is common problem which occurs due to several reasons, such as insufficient balance in drawer account, signature mismatch, overlap in the cheque, post dated cheque, and others. Bounced cheque also known as dishonored cheque, bears several demerits and when a cheque bounces there is deduction of specified amount as penalty from both the payee and drawer account.

Reasons and effects of cheque bounce:

Now a days, frequent cheque bounce cases are seen, which is creating problem to the both drawer and payee. It is really important to avoid cheque bounce because people having bounced checks can often face some shocking threats on the part of creditors. Some time, bounced cheque cases can also damage your credit rating reducing the chance to get credit in any form.

A bounced cheque will not be discharged, only if the creditor can demonstrate the reason for fraud, material misrepresentation and false pretenses in bankruptcy court. The creditor needs to pursue a judicial ruling from the bankruptcy court representing entire elements of common law fraud. In most of the cheque bounce cases, when you want to resolve your problem fee is charged.  

Solution to overcome chargeback:

Chargeback is another problem that has created uneven functioning of business that use credit card or debit card to accept money. The whole Chargeback System is complex problem that affect both merchant and customer either in term of time and hassle aroused due to chargeback or financial loss. A qualified lawyer and legal advisor play major role if you are facing such problems like chargeback, cheque bounce, matrimonial disputes, NPA account holder and etc. There are several circumstances when a cardholder's issue chargeback, some of the common reasons are Non-fulfillment of Copy Requests, Authorization Issues, Duplicate Billing, Bad Swipes, Unauthorized Transaction, product not received in the specified time, dissatisfaction with the product, and so on.

However, whatever the reason many be, but the loss is magnified in case if the customer has received products or services already, making capitol and profit loss for a merchant. To avoid Chargeback System, one can go for following remedies:

• Use a professional anti fraud filter
• Response quickly to know exact reason for chargeback.
• Never accept an expired credit card.
• Get authorization for the cash amount, thoroughly assuring the credit card details.
• Have a check about customer's name, address, and phone number with the card-issuing bank.
• Check out client problems regarding the quality of the product or services.