Types of bounced checks
NSF checks
When a check is returned from a bank, there is generally a return code that is readily visible. The most common reason a check bounces is "non-sufficient funds" (NSF). This means a check was accepted for payment, but it cannot be cleared through the account because there are "insufficient funds."
While it is bad news that a NSF check is returned, the good news is that NSF checks generally indicate the person's bank account is still open and may have funds at a later time. Most church treasurers will tell you they get "NSF checks" from church members. In fact, I had one treasurer tell me that at least half the member of the congregation where he worshipped had bounced at least one NSF check.
Most religious groups simply redeposit NSF checks. This is also the choice for many businesses and individuals, though there can be a "redeposit fee" imposed by the bank.
Stop payment checks
This type of check is exactly what it sounds like: a person wants to stop their financial institution from processing a check they have written. A person pays a fee and usually provides their financial institution with the check number they want to stop, the amount of the check, and the "payee."
Stop payment checks can be expensive. It is not uncommon to find a bank that charges between $18-32 to stop payment on a check.
Closed account checks
Bank accounts are sometimes closed. In some cases a person will write one or more checks on a "closed account" and the check will bounce.
Forgery checks
These checks are also well described by their name. Sometimes a checkbook is stolen and a person other than the account holder writes checks on the account. Businesses can help prevent this type of theft by comparing customer checks with a picture identification card such as a driver's license. Because checks are sometimes stolen, it is not wise to put your Social Security number on them.