alex has not been keeping his banking records up to date. on his latest bank statement, he found that he had…

alex has not been keeping his banking records up to date. on his latest bank statement, he found that he had been charged an overdraft fee for writing a bad check. in addition to his being charged a fee, which of these is another possible consequence of an overdraft?\n\nthe bank will close the merchants account.\nthe merchant who received his check will be charged an overdraft fee.\nthe bank will cancel his debit card.\nthe merchant who received his check will expect repayment and a penalty fee.

alex has not been keeping his banking records up to date. on his latest bank statement, he found that he had been charged an overdraft fee for writing a bad check. in addition to his being charged a fee, which of these is another possible consequence of an overdraft?\n\nthe bank will close the merchants account.\nthe merchant who received his check will be charged an overdraft fee.\nthe bank will cancel his debit card.\nthe merchant who received his check will expect repayment and a penalty fee.

Answer

Brief Explanations:

When a person writes a bad check due to an overdraft, the merchant who received the check is out - of - pocket. They will expect to be repaid the amount of the check and may also charge a penalty fee for the inconvenience and potential cost of handling the bad check. The bank is not likely to close the merchant's account or cancel the customer's debit card immediately just for one bad - check incident. And it's the account - holder (Alex) who is charged an overdraft fee, not the merchant for simply receiving the check.

Answer:

The merchant who received his check will expect repayment and a penalty fee.