True, when a check bounces, the money doesn't leave the bank, but banks typically honor overdrafts now and then charge the fees, and it would be lot more expensive for their customers if they didn't because those customers would be faced with hefty fees to the businesses that accepted their checks and sometimes even to the collection agencies that attempt to recover the funds. Since no one on this thread is complaining about the fees to businesses and collection agencies, which run about double to quadruple what the banks charge, I am assuming that the banks are floating their customers payday loans and saving them a lot of money in the process.

The simple solution to avoiding these fees is not to spend money that isn't in your account. If you do that, it doesn't really matter what the bank is charging you for overdrafts.