Credit Cards and You: Service Fees on Credit Card Transactions

Fees for dishonoured cheques and payments

A credit card issuer may charge you a fee of between $20 and $45 to handle a dishonoured ("bounced") payment by cheque or by pre-authorized payment. This fee applies if you make your monthly payment by cheque and the cheque is returned because of non-sufficient funds (N.S.F.). This can also happen if you use a convenience cheque to get a cash advance on your credit card, and your credit card issuer returns the cheque because you are over your limit.