He was then contacted by the sender of the cheque and asked if he could pay back the additional money as it had been a mistake.

BBC: Bouncing cheques are a big problem for small businesses.

As now, anyone paid by cheque will deposit it in their bank, to be sent on to various clearing houses, which route the cheque back to the issuer's bank for payment approval and the transfer of funds.

ECONOMIST: America's new law on cheques