When a check is returned due to insufficient funds, what term is used to describe it?

When a check is returned due to insufficient funds, it is described as having "bounced." This term indicates that the check could not be processed because the account holder did not have enough money to cover the amount of the check. When a check bounces, it reflects the financial institution’s inability to honor the check due to a lack of funds in the payer's account, which is a common issue individuals may face in personal finance management.

The other terms do not apply in this context. A check that is "cleared" means that it has been successfully processed and the funds have been transferred. A "cancelled" check refers to a check that has been rendered void by the drawer, usually before it is cashed. A "void" check is one that cannot be cashed or deposited, typically because it has been marked as invalid by the account holder. Therefore, "bounced" is the specific term used for checks that cannot be processed due to insufficient funds.