Why does a payment bounce?
Quite simply, because you don’t have enough money in your account to cover the payment. Typical bounced payments include direct debits or standing orders (called ‘pre-arranged payments’) which come out automatically usually in the early hours of the morning and even if you try to be meticulous about budgeting and planning, it can be easy to get caught out.
Let’s say you get paid on the 28th of every month, and you rely on that to pay off pre-arranged payments like your rent or a credit card bill which comes out around the same time. If your work makes a payment slightly later in the day, your wages might not clear in time for your pre-arranged payments to be made and that can result in a returned direct debit, aka a bounced payment.