Why do banks charge a fee on 'insufficient funds' when they know there is not enough?

Question

Why do banks charge a fee on 'insufficient funds' when they know there is not enough?

Answer 1

Let's say you write a check for $100 to pay for groceries.

The grocery store gives you the groceries, takes your check and deposits it into its account.

Then the grocery store's bank send the check to your bank.  It is only at that point that your bank can decide whether to pay it or not (i.e. let it clear).  If you don't have $100 in the account, it must return the check to the store's account, but it can also make you overdrawn.

Either way, that costs the bank money.

You should know how much is in your account. Don't write checks for more than you have.

Answer 2

Dude i got an email with like the last three questions you've asked on it. Haha.

Anyway, banks do that because.. They are big meanie heads.  

Answer 3

because this is a huge revenue opportunity for them. people continue to not be able to stay up on their finances and banks are always ready to 'remind' them