When you write a cheque or set up a pre-authorized debit but do not have enough money in your account to cover the transaction, the payment will bounce. This results in a non-sufficient funds (NSF) or dishonoured cheque fee. At the Canadian Imperial Bank of Commerce (CIBC), this fee is charged to penalize the account holder for attempting to spend money they do not have, while the payee's financial institution returns the payment unpaid.
Historically, Canadian banks charged around $45 for a dishonoured cheque. The CIBC NSF fee is now legally capped at a maximum of $10 per occurrence for personal accounts. Additionally, the bank cannot charge this fee if your account shortfall is less than $10, providing significant financial relief for everyday consumers.
At a Glance: CIBC Dishonoured Cheque Details
| Category | Details |
|---|---|
| Current NSF Fee | Maximum $10 per bounced transaction. |
| Grace Period | Top up your account before 12:00 PM local time to avoid the fee. |
| Overdraft Protection | Optional service starting at $5 per month to prevent bounced cheques. |
Step-by-Step Guide: How to Check Your Balance to Avoid Fees
The best way to avoid a dishonoured cheque fee is to verify your available balance before issuing a payment. Follow these exact steps using the CIBC digital portal:
- Navigate to the official CIBC website and select Sign In to access Online Banking.
- From the main dashboard, locate your primary chequing or savings account.
- Click on the account name to view your Available Balance (which dictates what you can actually spend, factoring in deposit holding periods).
- Review the Upcoming Transactions tab to see if any pre-authorized payments are scheduled to clear soon.
- If your balance is insufficient, use the Transfer Funds feature to move money from a savings account immediately.
Pro-Tip: Efficiency Hack: Instantly enable CIBC Smart Balance Alerts in your account settings. If your balance dips below $0 at the close of a business day, CIBC will automatically send you a text message at 8:30 AM the next morning. If you transfer funds to bring your balance positive before 12:00 PM local time, the pending cheque will clear normally and you will completely avoid the NSF fee.
Troubleshooting Common Access Issues
If you are trying to rush online to transfer funds and prevent a cheque from bouncing, watch out for these three common pain points:
- Multi-Factor Authentication (MFA) Delays: When logging in from an unrecognized device to check your balance, CIBC may send a verification code. If the SMS text is delayed, opt to receive the code via an automated voice call to bypass cellular network congestion.
- Browser Errors: If the transfer page refuses to load or times out before you can move funds to cover a cheque, clear your browser cache and cookies, or quickly switch to the CIBC Mobile Banking app on your smartphone to complete the transfer.
- Locked Online ID: Panicking and entering the wrong password multiple times will lock your CIBC profile. If this happens, you must use the Forgot Password link to reset your credentials using your debit card number, or call telephone banking immediately to authorize a manual transfer.
Frequently Asked Questions
What is the difference between an NSF fee and an overdraft fee?
An NSF fee is charged when a cheque bounces and the payment is rejected by the bank. An overdraft fee is charged when the bank actually covers the transaction for you (if you have Overdraft Protection set up), sending your account into a negative balance but ensuring the payee gets their money.
Can CIBC charge me multiple NSF fees for the same cheque?
No. Under the updated federal regulations, banks are prohibited from charging multiple NSF fees on the same account within a two-business-day period, and they cannot charge an additional fee if a merchant tries to re-present the same dishonoured cheque.
